February 14, 2011 by staff
OMB, With the new budget President Obama predicted that the deficit this year reached a record high and 1600000000000, OMB Director Jack Lew is to admit that we may never see the budget surplus he left behind at the last sitting as budget director under Bill Clinton. “I wish I could sit here and say that we were on the edge of excess. When I left my last day in office I went to Congress and testified and to 5.6 trillion surpluses projected for the next ten years, “Lew said.” I returned ten years later to look projections over and 10 trillion in debt over the next ten years. You just break your heart. We’ll have a lot of work just to get to the point where we are not adding to the debt “(AP) -. President Barack Obama will send Congress Monday a budget of $ 3 billion more for 2012 that promises $ 1. 1 trillion deficits over the next ten years by the freezing of many national programs for five years reduced military spending and limit tax deductions for the rich.
Jacob Lew, director of the president’s budget, said Sunday that the new spending plan for 2012 would be to refute the idea that “we can do without pain … we make tough choices. ”
Republicans rejected that assessment, criticizing Obama for proposals that will boost spending in areas such as education, public works and research, and the charge that Obama cuts are not deep enough.
They are committed to advancing their own plans to cut 61 billion and spending of the seven months remaining in the current budget year, and then press the Obama plan for 2012 budget billions of dollars in additional savings response to voters worried an unprecedented influx of red ink.
“He will submit a budget tomorrow that continue to destroy jobs by spending too much, too much borrowing and too imposing,” Speaker of the House John Boehner said on NBC’s “Meet the Press.” Boehner issued a statement calling Obama of 150 economists to take immediate action to reduce public spending.
Lew, appearing on CNN’s “State of the Union, rejected criticism that the $ 1100000000000 goal deficit was far from the $ 4000000000000 deficit reductions set by the Presidential Commission own deficit in a plan unveiled last December. This proposal would address the main causes of deficits – spending on benefit programs Medicare, Medicaid and Social Security – and defense spending.
Obama avoided the budget painful choices put forward by the Commission on benefit programs. Lew said it would be a mistake to say the report has not had an impact on the president’s proposals.
He cited a proposal to pay to keep the payments of physicians under Medicare from being significantly reduced. Instead of borrowing money to avoid these cuts, the administration has been put forward and 62 billion savings in other areas to avoid cuts over the next two years, “said Lew.
In addition, the administration revived a proposal Congress rejected last year to limit the tax deductions the wealthy can obtain charitable donations, mortgage interest payments and state and local taxes, and use these savings to pay to keep the alternative minimum tax from hitting more middle-class families over the next two years.
An administration official, who spoke on condition of anonymity before the budget was released, said one third of the 1.1 trillion and the deficit of the administration is projecting over the next decade would come from additional revenue with the bulk of which reflects the limits on tax deductions for the rich.
The administration has said that his five-year freeze and will save 400 billion over the next ten years with many programs planned for even deeper cuts. Community block grants would be cut down development and 300 million government program to help low-income people pay their heating bills would be reduced by half for a savings of $ 2.5 billion, and a restoration program Great Lakes Environmental would only reduce by 25 percent and save 125 million, according to an Office of Management and Budget summary.
This document also stated that the budget would reduce the Pentagon’s spending plans over the next decade by $ 78 billion in reductions in various weapons programs deemed unnecessary, including C-17 aircraft, engine parts for the Joint Strike Fighter aircraft and Marine Expeditionary vehicle.
TheOMB document also listed and 1 billion reduction in subsidies for large airports, almost $ 1 billion in reduced support to States for water treatment plants and other infrastructure programs and the economies of consolidation public health programs administered by the Center for Disease Control and various U.S. Forest Service programs.
Copyright © 2011 The Associated Press. All rights reserved.
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