Tags: Barack Obama | National Debt | Obama | budget | add | 6 trillion | deficit

CBO: Obama's Budget to Add $6 Trillion to Deficit

By    |   Thursday, 12 Mar 2015 02:49 PM

President Barack Obama's fiscal 2016 budget would add close to $6 trillion to the deficit over the next decade, the Congressional Budget Office said Thursday.

The figure is slightly above the $5.7 trillion cumulative deficit projected in Obama's budget through 2025, The Hill reported.

But the CBO estimate is less than the $6.6 trillion it said that the Obama budget submitted one year ago would add to the deficit over 10 years.

If Congress approved Obama’s budget request, submitted in early February, the CBO says the deficit in 2016 would fall from the $455 billion projected under current law to $380 billion. In all, CBO said that, over the next decade, Obama's budget would result in $1.2 trillion less in deficit increases compared with current law.

According to CBO, the $1.2 trillion would result from a combination of lower spending for overseas military operations in Afghanistan, reductions in Medicare spending, tax increases, and economic benefits the agency says will result if Obama's immigration overhaul proposals were adopted.

Republicans seized on the CBO report to slam Obama’s budget plan, with House Budget Committee Chairman Tom Price saying the analysis "confirms that it is not a serious proposal to solve our nation’s fiscal and economic challenges.

"Instead, the president continues to rely on job-destroying tax hikes to fuel more reckless spending in Washington," the Georgia congressman said. "And despite taking over a trillion dollars more out of the pockets of hard-working Americans, the president’s budget will add an additional $6.7 trillion to the national debt over the next 10 years and never, ever balance.

"His policies and the debt they create are standing in the way of a healthier economy and degrading the American people's trust in the ability of policymakers to tackle tough challenges.

"Soon, House Republicans will release a balanced budget that embraces America's innovative spirit to grow our economy and make the responsible decisions needed to reform government so it is more efficient, effective, and accountable to American taxpayers," Price said. "We will put forward solutions that will truly address our nation's fiscal and economic challenges and deliver real results."

Outside experts, however, say these figures tell only part of the story.

In September, for example, Obama boasted that "we cut our deficit by more than half."

"Forget about it," Investor's Business Daily said earlier this week in analyzing the president's claim.

While it is true that deficits fell as the U.S. economy recovered from one of the worst recessions in American history, the reductions occurred because legal spending caps were instituted and the defense budget was slashed.

But Investor's Business Daily also citing figures provided by CBO said that spending and deficits are back on upward trajectories.

While CBO estimates show that deficits "will remain stable through 2018, they will surge after that," Investor's Business Daily reported. By 2025, they will reach more than $1 trillion a year.

In 2014, the U.S. spent $3.5 trillion, a figure projected to increase to $4 trillion this year and $6 trillion by 2025, according to CBO. The agency's figures show spending as a share of gross domestic product increasing from 20.3 percent of GDP last year to 22.1 percent in 2025.

The spending increase "is being driven by soaring entitlements such as Medicare, Medicaid, and Social Security, along with President Obama's pet new program, the ever-more costly Obamacare," the newspaper said. As a result, it observed, CBO projects that deficits as a share of GDP will increase from approximately 2.4 percent now to 3.8 percent by 2025.

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President Barack Obama's fiscal 2016 budget would add close to $6 trillion to the deficit over the next decade, the Congressional Budget Office said Thursday.
Obama, budget, add, 6 trillion, deficit, CBO, Tom Price
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Thursday, 12 Mar 2015 02:49 PM
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