POLITICS

WH predicts $1.2 trillion deficit as Obama campaigns on debt reduction

|
Politics,Beltway Confidential,Joel Gehrke

President Obama’s budget director predicted a $1.2 trillion budget deficit for 2012 today, which prompted one senator to call for the president to pull down a Obama campaign ad that promises to “pay down the debt.”

“For 2012, the deficit is now projected to be $1.211 trillion, $116 billion lower than the $1.327 trillion deficit projected in February,” Jeff Zients, director of the Office of Management and Budget, wrote on the White House blog.  “This reflects lower-than-expected spending, partially offset by lower-than-expected receipts.”

His projection comes just days after Obama released a campaign advertisement that proposes “asking the wealthy to pay a little more so that we can pay down our debt in a balanced way.” Zients alluded to the tax increase proposal when he said that “Congress can and must enact a comprehensive and balanced deficit reduction package, along the lines of the President’s Budget” — a budget unanimously rejected by the House and the Senate.

Sen. Jeff Sessions, R-Ala., believes that the $1.2 trillion deficit rather Obama’s rhetoric on paying down the debt than strengthens it.

“The President’s claim his tax hikes are for deficit reduction is shown to be false as well,” Sessions, the ranking Republican on the Budget Committee, said today. “His budget proposes to spend $46.2 trillion over ten years—an increase of nearly one-and-half trillion dollars above the current law baseline and a 57 percent increase above today’s spending levels. The President’s $1.8 trillion tax increase is not used to reduce the deficit but to fund this massive increase above what we are currently planning to spend.”

Sessions said that the TV ad is “dramatically false” and “ought to be pulled down.”

 

 

 

View article comments Leave a comment