Look at how the AP covers for Obama. It is almost as if they are bitter at the CBO for announcing these numbers. Being cynical of such things as deficit projections about socialistic programs, we can probably expect that his projections are farther off than 2 trillion. sad.
But the agency also rejects the administration’s claims of more than $300 billion of that savings — to pay for preventing a cut in Medicare payments to doctors — because it doesn’t specify where it would come from. Likewise, CBO fails to credit the White House [are assurtions like ‘fails to credit’ neutral reporting?] with an additional $328 billion that would come from unspecified “bipartisan financing” to pay for transportation infrastructure projects such as high speed rail lines and road and bridge construction.
Friday’s report actually predicts the deficit for the current budget year, which ends Sept. 30, won’t be as bad as the $1.6 trillion predicted by the administration and will instead register $200 billion less. But 10 years from now, CBO sees a $1.2 trillion deficit that’s almost $400 billion above White House projections.
The White House’s goal is to reach a point where the budget is balanced except for interest payments on the $14 trillion national debt. Such “primary balance” occurs when the deficit is about 3 percent of the size of the economy, and economists say [who are these economists? souldn’t the journalist back this up?] deficits of that magnitude are generally sustainable.
Then, what does the last paragraph, reprinted below, have to do with the CBO report? The AP just had to get a dig at the tea party in.
Conversely, the report is a sobering blow to House Republicans charged with developing a budget blueprint that could satisfy its core supporters in the tea party. Republican lawmakers had already acknowledged that they won’t be able to generate a budget that comes to balance by the end of the decade. Friday’s news makes that task even more difficult.