Report: Obama plans to slash deficit in half by 2013

February 22, 2009

WASHINGTON (ChattahBox) — While President Barack Obama has campaigned for and won hundreds of billions of dollars in stimulus to help revive the economy he is also working on a plan to cut the federal deficit in half by the end of his first term.

Obama inherited a deficit of about $1.3 trillion from former President George W. Bush. An administration official Saturday, Obama’s budget blueprint for the 2010 fiscal year, which begins Oct. 1, will include a 10-year projection showing the annual deficit declining to $533 billion in the 2013 fiscal year, the last year of his term. While that suggests a two-thirds reduction, exceeding Obama’s goal of at least half, advisers note that the current deficit as a starting point is inflated by one-time expenses to stimulate the economy. After a White House fiscal policy summit on Monday Obama will address his efforts to restore fiscal discipline to Congress on Tuesday. On Thursday he plans to send at least a summary of his first budget request to Capitol Hill.

The official, speaking on condition of anonymity said the deficit will be shrunk by scaling back Iraq war spending, ending the temporary tax breaks enacted by the Bush administration for those making $250,000 or more a year, and streamlining government. Obama’s budget also is expected to take steps toward his campaign promises of establishing universal health care and lessening the country’s reliance on foreign oil.

Republicans were quick to rebutt Obama’s plan saying it would hurt small businesses, including many filing taxes as individuals and possibly facing higher taxes under his plan.


Comments

One Response to “Report: Obama plans to slash deficit in half by 2013”

  1. Joseph Aldeguer on February 23rd, 2009 3:43 am

    Foreclosure is the major cause of our financial crisis. Government should really prioritize this issue.

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