Tags: Deficits | Obama | economy | cbo

CBO Warns of Higher Deficits Under Obama Plan

Friday, 16 Mar 2012 11:05 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
A new analysis of President Barack Obama's budget for next year says the deficit scenario isn't as rosy as the White House painted it.

Friday's Congressional Budget Office report said Obama's budget would produce a $977 billion deficit next year — $75 billion more than predicted by the White House.

The nonpartisan CBO said Obama's budget office consistently overestimates tax revenues over the coming decade. CBO predicts revenues on average that are about $120 billion less each year than predicted by the White House.

Still, CBO said Obama's budget would generate somewhat lower deficits over the coming decade than the White House predicts. Much of that is due to lower interest costs and less generous cost-of-living adjustments in Social Security benefits.

The forecasting differences aren't unusual and generally are caused by CBO's less optimistic view of the economy over the next couple of years. The White House forecasts higher income and corporate profits. Over the coming decade, CBO says Obama's policies would result in deficits totaling $6.4 trillion.

For the current budget year, CBO says Obama's policies, if enacted, would generate a $1.25 trillion deficit. That's $74 billion better than the White House forecast but still represents the fourth consecutive year of trillion dollar-plus deficits.

The report is a precursor to the annual budget debate in Congress. House Budget Committee Chairman Paul Ryan, R-Wis., plans to unveil his budget plan next week, which will call for sharply lower spending on federal health care programs, lower taxes than called for by Obama and less money for the day-to-day budgets of federal agencies than called for in last year's budget and debt pact.

The House GOP measure won't get anywhere with Obama or Democrats controlling the Senate, however. Expectations are low for any election-year progress on the deficit as Obama and his GOP rivals continue to differ on raising taxes and curbing the explosive growth of popular benefit programs like Medicare.

Senate Democrats plan on spending "caps" set by last year's budget pact for an upcoming round of spending bills and don't anticipate scheduling a debate on a broader budget blueprint.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

New Tests Likely for Ebola Vaccine First Tried in '99

Monday, 20 Oct 2014 08:03 AM

A vaccine that appears to stop Ebola in monkeys was successfully tested in 1999, but only now are efforts under way to a . . .

Obama to Bypass Congress on Easing of Iran Sanctions

Monday, 20 Oct 2014 07:37 AM

President Obama will not seek congressional approval for any deal his negotiator Wendy Sherman might reach with Iranian  . . .

Wisconsin Teachers Choosing to Pull Out of Unions

Monday, 20 Oct 2014 07:13 AM

Increasing numbers of teachers in Wisconsin are choosing not to remain union members now that they have a choice, with m . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved