Tuesday, September 07, 2004
In a report released Tuesday, the Congressional Budget Office (CBO) revised its projection for the country's budgetary shortfalls, lowering its previous forecast for fiscal years 2004 and 2005 but raising its estimates for cumulative 10-year deficits by $281 billion.
Under current laws and policies, the projected 10-year deficit is expected to total $2.28 trillion, or 1.5 percent of the estimated 10-year combined gross domestic product (GDP), up from a March projection of $2 trillion.
CBO Director Douglas Holtz-Eaking said in a press conference Tuesday morning that the upward revision is due mainly to military expenditures for Iraq and Afghanistan that were not included in the March analysis.
and what does the pres say, he celebrates. i'm not kidding.
Chad Kolton, a spokesman at the White House's Office of Management and Budget, said the lower numbers for 2004 and 2005 are evidence that the president's tax cut is working. He also said Bush's current deficit-reduction plan will erode those numbers even further.
"If we continue with these pro-growth policies, we'll be able to cut the deficit in half in five years," said Kolton.
Kerry's response is classic:
"Only George W. Bush could celebrate over a record budget deficit of $422 billion," Kerry said in a press release, adding that he also had a plan to halve the deficit in four years.
And the CBO offers this nugget
"This is a fiscal situation in which we cannot rely on economic growth to cause deficits to disappear," CBO's Holtz-Eakin said at the agency's press conference earlier today. "Instead, the central path of the budgetary outlook will be dictated by policy choices."
What does that mean, exactly? That means trickle down ain't gonna be worth the bowl its spit in.