Obama exaggerates deficit savings

In his news conference on Monday, President Obama bragged about his deficit reduction prowess. He claimed to have already cut spending $1.4 trillion. If you combine that with $600 billion in tax hikes from the fiscal cliff deal plus interest savings, it "adds up to a total of $2.5 trillion." Try again, Barry: But a closer look at the numbers shows that Obama is exaggerating how much deficit reduction he's actually achieved, and is being decidedly Pollyannaish about the nation's still massive long-term budget gap and what will be needed to close it. Wrong Budget Trajectory Obama's Bowles-Simpson debt commission, for example, said in its final report - issued in late 2010 - that a credible $4 trillion deficit reduction plan would produce red ink of just $279 billion in 2020. But the current budget trajectory puts that year's deficit at close to $600 billion, according to Congressional Budget Office data. Meanwhile, the commission plan called for national debt to be 65% of ...(Read Full Post)