Nbadan
01-02-2005, 02:02 AM
By EDMUND L. ANDREWS
Published: January 2, 2005
WASHINGTON, Jan. 1 - To show that President Bush can fulfill his campaign promise to cut the deficit in half by 2009, White House officials are preparing a budget that will assume a significant jump in revenues and omit the cost of major initiatives like overhauling Social Security.
To make Mr. Bush's goal easier to reach, administration officials have decided to measure their progress against a $521 billion deficit they predicted last February rather than last year's actual shortfall of $413 billion.
By starting with the outdated projection, Mr. Bush can say he has already reduced the shortfall by about $100 billion and claim victory if the deficit falls to just $260 billion.
But White House budget planners are not stopping there. Administration officials are also invoking optimistic assumptions about rising tax revenue while excluding costs for the wars in Iraq and Afghanistan as well as trillions of dollars in costs that lie just outside Mr. Bush's five-year budget window.
Reality continues to elude this administration...more..
"I've been watching this more than 30 years, and I have never seen anything quite this egregious," said Stanley Collender, a longtime author on budget issues and a senior vice president at Financial Dynamics, a communications firm in Washington.
"They are cutting the deficit from a number they never believed in the beginning," Mr. Collender said, referring to the decision to measure progress against the unrealized $521 billion deficit projection. "What if they had forecast that the deficit would be $800 billion last year? Would they take credit for having cut it by half?"
White House officials are making several budgeting decisions that make their tax revenues look higher and their spending look lower than many analysts think is realistic.
-snip-
Mr. Bush has consistently refused to include Iraq costs in his annual budget request, seeking money through a supplemental appropriations bill that lies outside the official budget. The White House asked for and received $87 billion for the last fiscal year, as well as another $25 billion to cover the first few months of the 2005 fiscal year. The administration is expecting to ask for as much as $80 billion more in the next few months, but it will not include any cost estimates in Mr. Bush's budget for the 2006 fiscal year."
NY Times (http://www.nytimes.com/2005/01/02/politics/02fiscal.html)
No, not VooDoo Economics, this is Three-Card Monty Economics.
:lol
Published: January 2, 2005
WASHINGTON, Jan. 1 - To show that President Bush can fulfill his campaign promise to cut the deficit in half by 2009, White House officials are preparing a budget that will assume a significant jump in revenues and omit the cost of major initiatives like overhauling Social Security.
To make Mr. Bush's goal easier to reach, administration officials have decided to measure their progress against a $521 billion deficit they predicted last February rather than last year's actual shortfall of $413 billion.
By starting with the outdated projection, Mr. Bush can say he has already reduced the shortfall by about $100 billion and claim victory if the deficit falls to just $260 billion.
But White House budget planners are not stopping there. Administration officials are also invoking optimistic assumptions about rising tax revenue while excluding costs for the wars in Iraq and Afghanistan as well as trillions of dollars in costs that lie just outside Mr. Bush's five-year budget window.
Reality continues to elude this administration...more..
"I've been watching this more than 30 years, and I have never seen anything quite this egregious," said Stanley Collender, a longtime author on budget issues and a senior vice president at Financial Dynamics, a communications firm in Washington.
"They are cutting the deficit from a number they never believed in the beginning," Mr. Collender said, referring to the decision to measure progress against the unrealized $521 billion deficit projection. "What if they had forecast that the deficit would be $800 billion last year? Would they take credit for having cut it by half?"
White House officials are making several budgeting decisions that make their tax revenues look higher and their spending look lower than many analysts think is realistic.
-snip-
Mr. Bush has consistently refused to include Iraq costs in his annual budget request, seeking money through a supplemental appropriations bill that lies outside the official budget. The White House asked for and received $87 billion for the last fiscal year, as well as another $25 billion to cover the first few months of the 2005 fiscal year. The administration is expecting to ask for as much as $80 billion more in the next few months, but it will not include any cost estimates in Mr. Bush's budget for the 2006 fiscal year."
NY Times (http://www.nytimes.com/2005/01/02/politics/02fiscal.html)
No, not VooDoo Economics, this is Three-Card Monty Economics.
:lol