Rigs11
07-28-2008, 12:23 PM
Hilarious!
White House projects record deficit for 2009
WASHINGTON (CNN) -- The White House on Monday predicted a record deficit of $490 billion for the 2009 budget year, a senior government official told CNN.
The deficit would amount to roughly 3.5 percent of the nation's $14 trillion economy.
The official pointed to a faltering economy and the bipartisan $170 billion stimulus package that passed earlier this year for the record deficit.
The fiscal year begins October 1, 2008.
The federal deficit is the difference between what the government spends and what it takes in from taxes and other revenue sources. The government must borrow money to make up the difference.
The official spoke on the condition of anonymity, citing a lack of authorization to speak publicly ahead of an official briefing later Monday by Office of Management and Budget Director Jim Nussle.
White House spokeswoman Dana Perino said the stimulus package was necessary, even if it increased the deficit.
"We do think the plan was the right one, and it will have an effect," Perino said. "And the best way to help reduce the deficit is to make sure you are keeping a lock on spending, but also that you can also try to help to build the economy. So we hope this will help us pull out of the economic downturn over the next few months because of the stimulus package.
"I remember that back when we were discussing the stimulus package, both parties recognized that the deficit would increase, and that would be the price that we pay in order to help improve the economy," she said.
President Bush inherited a budget surplus of $128 billion when he took office in 2001 but has since posted a budget deficit every year.
The Bush administration has spent heavily on the wars in Iraq and Afghanistan, and faces a large budget shortfall in tax revenue because of Bush's tax cuts and a souring economy.
A Democratic point man on the budget, Sen. Kent Conrad of North Dakota, blasted the administration for its "reckless fiscal policies," blaming the president's tax cuts for driving the government into deficit and saying Bush "will be remembered as the most fiscally irresponsible president in our nation's history."
Conrad, who chairs the Senate's budget committee, accused the president of "squandering" the deficit he inherited from President Bill Clinton and said the increased debt the government has taken on to cover the deficit has undermined the value of the dollar and hurt the overall economy.
"If they gave out Olympic medals for fiscal irresponsibility, President Bush would take the gold, silver and bronze," Conrad said. "With his eight years in office, he will have had the five highest deficits ever recorded. And the highest of those deficits is now projected to come in 2009, as he leaves office."
But the senior administration official says the budgetary problems stem from what is believed to be inadequate defense, intelligence and homeland security resources that were handed down from Clinton.
The nonpartisan Congressional Budget Office in March projected the deficit for the 2008 fiscal year, which ends September 30, would be $396 billion. It predicted the 2009 deficit to be $342 billion, if the president's proposals were adopted.
http://www.cnn.com/2008/POLITICS/07/28/2009.deficit/index.html
White House projects record deficit for 2009
WASHINGTON (CNN) -- The White House on Monday predicted a record deficit of $490 billion for the 2009 budget year, a senior government official told CNN.
The deficit would amount to roughly 3.5 percent of the nation's $14 trillion economy.
The official pointed to a faltering economy and the bipartisan $170 billion stimulus package that passed earlier this year for the record deficit.
The fiscal year begins October 1, 2008.
The federal deficit is the difference between what the government spends and what it takes in from taxes and other revenue sources. The government must borrow money to make up the difference.
The official spoke on the condition of anonymity, citing a lack of authorization to speak publicly ahead of an official briefing later Monday by Office of Management and Budget Director Jim Nussle.
White House spokeswoman Dana Perino said the stimulus package was necessary, even if it increased the deficit.
"We do think the plan was the right one, and it will have an effect," Perino said. "And the best way to help reduce the deficit is to make sure you are keeping a lock on spending, but also that you can also try to help to build the economy. So we hope this will help us pull out of the economic downturn over the next few months because of the stimulus package.
"I remember that back when we were discussing the stimulus package, both parties recognized that the deficit would increase, and that would be the price that we pay in order to help improve the economy," she said.
President Bush inherited a budget surplus of $128 billion when he took office in 2001 but has since posted a budget deficit every year.
The Bush administration has spent heavily on the wars in Iraq and Afghanistan, and faces a large budget shortfall in tax revenue because of Bush's tax cuts and a souring economy.
A Democratic point man on the budget, Sen. Kent Conrad of North Dakota, blasted the administration for its "reckless fiscal policies," blaming the president's tax cuts for driving the government into deficit and saying Bush "will be remembered as the most fiscally irresponsible president in our nation's history."
Conrad, who chairs the Senate's budget committee, accused the president of "squandering" the deficit he inherited from President Bill Clinton and said the increased debt the government has taken on to cover the deficit has undermined the value of the dollar and hurt the overall economy.
"If they gave out Olympic medals for fiscal irresponsibility, President Bush would take the gold, silver and bronze," Conrad said. "With his eight years in office, he will have had the five highest deficits ever recorded. And the highest of those deficits is now projected to come in 2009, as he leaves office."
But the senior administration official says the budgetary problems stem from what is believed to be inadequate defense, intelligence and homeland security resources that were handed down from Clinton.
The nonpartisan Congressional Budget Office in March projected the deficit for the 2008 fiscal year, which ends September 30, would be $396 billion. It predicted the 2009 deficit to be $342 billion, if the president's proposals were adopted.
http://www.cnn.com/2008/POLITICS/07/28/2009.deficit/index.html