Tuesday, March 24, 2009

Budget Fact #9

Halving The Deficit Is Half The Story

The Facts About The Democrats' Budget:

Halving The Deficit Is Only Half The Story. The Democrats' say their budget will halve the deficit in four years. Yet, the Democrats don't give the rest of the story. According to both the CBO and OMB, the budget deficit will increase every year after the Democrats claim they have halved the deficit. Claiming to cut the deficit in half is a useful talking point but it covers up for the fact that by 2013 the budget deficit is increasing each year. This will continue through 2019.

Annual Budget Deficits Higher Than Any Year Before President Obama Took Office. Despite the Democrats' claims, their budget plans for deficits through 2019 that are actually higher than for any year before President Obama took office. This includes a deficit projected by CBO of $672 billion in 2013, the year the Democrats are claiming to halve the budget.

Unprecedented Borrowing: According to the CBO, the President's budget will add $9.3 trillion to the national debt. This would lead to unprecedented borrowing, with debt held by the public increasing from 41% of GDP in 2008 to 82% of GDP in 2019.

According To The CBO, The Democrats' Current Budget Projects Are Off By $2.3 Trillion. "The office's estimates of deficits in the fiscal years 2010 through 2019 'exceed those anticipated by the administration by $2.3 trillion.'" (David Stout, "Much Bigger Deficits Seen In Budget Office Forecast," The New York Times, 3/20/09)

The CBO Estimates That Deficits "Would Exceed 4 Percent Of The Overall Economy Over The Next 10 Years" – A Level That Even The Democrats Acknowledge Is Unsustainable. "Although Obama would come close to meeting his goal of cutting in half the deficit he inherited by the end of his first term, the CBO predicts that deficits under his policies would exceed 4 percent of the overall economy over the next 10 years, a level White House budget director Peter R. Orszag yesterday acknowledged would 'not be sustainable.'" (Lori Montgomery, "Deficit Projected To Swell Beyond Earlier Estimates," The Washington Post, 3/21/09)

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