Entries in CBO (6)


After CBO Report, Romney Shifts Back to Economic Message

J.D. Pooley/Getty Images(BETTENDORF, Iowa) -- Mitt Romney bounded into the battleground state of Iowa today, aided by a new, non-partisan government report that painted a grim picture of the state of the economy. Romney used the new data to return his campaign’s narrative to its favorite catch phrase: the Obama economy isn’t working.

For Romney, it’s just the topic he hoped to return to following days that have been focused on contentious comments by Rep. Todd Akin, R-Mo., about abortion that have forced Romney and his running mate, Paul Ryan, to step into the fray and comment on the controversy.

The government report, released today by the Congressional Budget Office, estimated a $1.1 trillion deficit for 2012, and said that if the tax and spending cuts go through as planned in January that “such fiscal tightening will lead to economic conditions in 2013 that will probably be considered a recession.”

The report also predicted that the country’s unemployment rate would remain above 8 percent for the rest of the year.

“President Obama, bless his heart, has tried to substitute government for free people and it has not worked and it’ll never work,” said Romney, who spoke at an aluminum casting manufacturer in eastern Iowa, his second trip to the state this month.

“I mentioned he said he’d cut the deficit in half; he doubled it,” Romney said. “He said he’d get people good jobs. Instead, we’ve gone 42 straight months with unemployment over 8 percent, 23 million Americans out of work or stopped looking for work. It’s inexcusable.”

Romney did not mention the latest government report by name.

“You look at all of the debt of the country: why, it’s about the size of our entire economy,” said Romney.

Earlier today, the White House put out a statement on the report, pointing the blame back on the Republicans.

“Today’s Congressional Budget Office report only reinforces the urgent need for House Republicans to follow the Senate’s lead and pass a bill that gives middle class families the confidence that they won’t see their taxes go up at the beginning of next year,” wrote White House press secretary Jay Carney. “But instead of doing the right thing, Republicans in Washington have chosen to double down on the same failed policies that led to the economic crisis in the first place. They’re willing to hold the middle class hostage unless we also give massive new tax cuts to millionaires and billionaires – tax cuts we can’t afford that would do nothing to strengthen the economy.”

Copyright 2012 ABC News Radio


White House Touts CBO Analysis of Obama's Budget

Comstock/Thinkstock(WASHINGTON) -- The White House is cheering the findings of a new CBO analysis of the president’s budget, saying it “confirms that the President has a balanced plan to reduce our budget deficits and put the country on a fiscally sustainable path.”

The report forecasts the Obama budget would produce a $997 billion deficit next year, $75 billion more than the administration predicted.

In a White House blog, OMB Director Jeff Zients notes that the “CBO shows that we can achieve this level of deficit reduction by pursuing a balanced plan that asks everyone to shoulder their fair share.”

Copyright 2012 ABC News Radio


Boehner Has ‘Different Approach’ to Job Creation than Democrats

TOBY JORRIN/AFP/Getty Images(WASHINGTON) -- House Speaker John Boehner told reporters Tuesday that Republicans have a “different approach” to job creation than the $447 billion proposal President Obama pitched to Congress last week, explaining that the GOP would not support paying for temporary relief through permanent tax increases.

“As a former small businessman myself, I can tell you that we’ve got a little different approach to creating jobs than our friends across the aisle,” Boehner, R-Ohio, said.  “When you look at what we saw in the president’s pay-for’s [Monday], we see permanent tax increases put into effect in order to pay for temporary spending.  I just don’t think that’s really going to help our economy the way it could.”

Boehner added that drawing from his meetings with constituents and entrepreneurs during the August recess, he believed there’s a growing concern among Americans about the stagnant state of the economy.

“While there’s a lot of uncertainty out there, what I’ve seen over the last six straight weeks is a lot of that uncertainty is turning to certainty and the certainty is resulting in fear.  Fear that the economy isn’t coming back anytime soon,” Boehner warned.  “All of the efforts that the administration tried when they had total control of the House and the Senate and the White House, they have not worked.  And as we get into this conversation with the president about we help our economy, I hope he’ll listen to our ideas, and I hope that he’ll work with us to find common ground to get our economy moving and create jobs again.”

Boehner said he talked to “thousands” of people and employers throughout the August recess, and “what the American employers want is they want some certainty about what’s happening in Washington.”

“Certainty about what tax rates are going to be, certainty about what their health care commitments are going to be, and certainty about the regulatory onslaught that they’re under,” Boehner said.  “These are the kinds of things that need to be addressed if we’re going to create the kind of environment where employers will feel comfortable in adding more employees to their companies.”

Boehner said that before deciding how to move on the president’s legislation, he is awaiting the Congressional Budget Office’s score of the 155-page bill known as the “American Jobs Act.”  But, in the meantime, the speaker said he expected the bill to begin moving through committees as Republicans continue pushing their own agenda on the House floor.

Copyright 2011 ABC News Radio


CBO Score: Senate Plan Cuts Deficits by $2.2 Trillion over Next 10 Years

Reid [dot] Senate [dot] gov(WASHINGTON) -- One day after the non-partisan Congressional Budget Office scored the Boehner plan, finding it short on cuts, the CBO on Wednesday morning released a more favorable score for Senate Majority Leader Harry Reid’s debt ceiling plan.

CBO, the nonpartisan budget accounting arm of Congress, estimates that Reid's legislation would reduce budget deficits by about $2.2 trillion over the next 10 years.  The score could perhaps breathe new momentum into to the Senate plan.

Reid’s plan would raise the debt ceiling by $2.7 trillion -- past the next presidential election and into 2013.  The competing proposal from Boehner is a two-step plan that would require another debt ceiling vote in about six months.

But don't look for Republicans to flock to Reid's proposal.  They have complained that nearly half the cuts in Reid's proposal are not actually cuts: $1 trillion comes from the “winding down” of the wars in Iraq and Afghanistan.  Republicans have said this is a disingenuous way of counting money that would not have been spent anyway since the wars are already winding down. Boehner had called such accounting maneuvers in Reid's plan "gimmicks."

Discretionary spending cuts in Reid's proposal would result in $840 billion in lower authorized spending, the CBO report said Wednesday morning, and $750 billion in actual lower outlays in the next 10 years.

Speaker of the House Boehner’s plan, scored Tuesday by the CBO, found $850 billion in savings -- less than the Speaker had anticipated.  Boehner has delayed a House vote originally scheduled for Wednesday in order to find more savings, and rally more votes in the House for the plan.

The Senate plan is not scheduled for a vote yet.

Copyright 2011 ABC News Radio


CBO: Democrats’ '$6.5 Billion' in Spending Cuts Actually $4.7 Billion

Jupiterimages/Thinkstock edit Delete caption(WASHINGTON) -- The Congressional Budget Office this week said that the Senate Democrats’ bill offers $4.7 billion in spending cuts -- not the $6.5 billion that President Obama and congressional Democrats said.

After last week’s meeting on Capitol Hill among congressional leaders and Vice President Biden, Senate Democrats wrote legislation and gave it to the CBO to be analyzed. CBO placed the cuts at $4.7 billion.

The bottom line: Democrats and Republicans are roughly $52 billion apart in the cuts they want to see.

Copyright 2011 ABC News Radio 


CBO Boss Sounds Debt Warning on Capitol Hill

Photo Courtesy - Stephen Chernin/Getty Images(WASHINGTON) -- Congressional Budget Office Director Doug Elmendorf went to Capitol Hill Thursday to sound yet another warning about the country’s debt problems.

The non-partisan CBO this week predicted this year’s federal budget deficit would come in at $1.5 trillion, a new record, and in a decade debt held by the public would reach 97 percent of GDP, the highest level since 1946.

“We would be entering unfamiliar territory for all developed countries over the past several decades,” Elmendorf told the Senate Budget Committee about the ten-year forecast, noting that the experiences of other nations who had similar debt crises have been “poor.” 

Lawmakers on both sides of the aisle said the report about the long-term fiscal outlook should serve as another reminder of the need for action.

“CBO’s report should be a red light flashing to the nation. Our fiscal situation is serious and becoming more so. We are at a critical juncture -- we are borrowing 40 cents of every dollar we spend,” said the panel’s chairman, Kent Conrad. “This is utterly unsustainable and the sooner we address it, the sooner we come to grips with it, the better.”

“The warning signs,” he emphasized, “are as clear as they can be.”

The committee’s top Republican Jeff Sessions said President Obama missed an opportunity in Tuesday’s State of the Union address to unveil real measures to rein in the nation’s soaring red ink.

“I don’t think he rose to the occasion,” Sessions said. “It was a timid speech. He squandered a historic opportunity to rally the American people behind true spending reforms.”

Copyright 2011 ABC News Radio

ABC News Radio