July 29, 2008
New York Sun on Obama's and McCain's Tax Plans
"New Deficit Figures Constrain Obama, McCain"
By Russell Berman
WASHINGTON - Senators Obama and McCain may face increasing pressure to revise their ambitious economic proposals after the White House yesterday said the nation's budget deficit is likely to be much larger than previously thought. ...
The Bush administration is now projecting a budget gap of $482 billion for 2009, a jump of more than $70 billion from its forecast in February. The number represents a record nominal dollar figure for the deficit, although it falls well short of the all-time high when measured as a percentage of the total economy.
The estimate came as part of a sobering economic report by the administration in which officials forecast a slower rate of economic growth—1.6%—and higher unemployment than they had predicted earlier this year.
The larger deficit, they said, was a result both of the struggling economy and the bipartisan stimulus package that Congress approved and President Bush signed in January.
The White House budget director, James Nussle, acknowledged that the administration was "not happy" with the deficit, but he said it could be controlled with sound fiscal policy. "Near-term deficits are both temporary and manageable if, and only if, we keep spending in check, the tax burden low, and the economy growing," Mr. Nussle told reporters. "Excessive spending beyond the president's budget plan will make the problem worse."
. . .
"Both candidates are making commitments that aren't funded," a former Treasury official who is now senior vice president of the non-partisan Tax Foundation, Robert Carroll, said, adding that the new numbers would heighten pressure to raise taxes.
