The Spectacle Blog

Obama Projects $1.75 Trillion Deficit for 2009, Savings “TBD”

By on 2.26.09 | 7:15AM

Some highlights from the Washington Post story on his budget, to be released today (with some emphasis in parts by me):

President Obama will release a proposed budget today that sets aside up to $250 billion dollars to add to he existing bank bailout, which would bring the 2009 budget deficit to $1.75 trillion dollars...

It identifies $634 billion in tax increases and spending cuts to cover the cost of part of the program, but does not say how the administration hopes to raise the rest of the money -- hundreds of billions of dollars more. "TBD" has been penciled into categories for cost savings and benefit reductions....

Obama's budget also would make permanent a tax cut for the middle class enacted in the recent stimulus package. But to pay for it, the president counts on a big infusion of cash from a politically controversial cap-and-trade system, which would force companies to buy allowances to exceed pollution limits....

And though Obama told Congress on Tuesday that his budget team has "already identified $2 trillion in savings" to help tame record budget deficits, about half of those "savings" are actually tax increases, administration officials said. A big chunk of the rest of the savings comes from measuring Obama's plans against an unrealistic scenario in which the Iraq war continues to suck up $170 billion a year forever.

Higher taxes, more spending, and mystery savings. Sounds like an Obama budget to me.

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