January 31, 2008

Deficits Could Force Domestic Spending Freeze

Per MSNBC, AP is reporting that the Bush administration is close to asking Congress to freeze domestic spending this year.

An economic stimulus package is expected on President Bush's desk by Feb. 15, and it will range from $145 billion to $157 billion, depending on how the House-Senate compromise pans out. The package will double the federal deficit this year, and on Monday, Bush is expected to announce that deficits are approaching the $400 billion mark when he rolls out his budget.

The overall slowdown of the economy and an onslaught of negative economic indicators mean lower revenues this year, and the White House is expected to deliver a worse prediction than a recent forecast from the nonpartisan Congressional Budget Office.

Deficits have skyrocketed under Bush's watch largely because of the Iraq and Afghanistan wars, along with historically low taxes.

We'll update with confirmation/details as they come.

Posted at 3:11 PM
Posted to: Bush Administration, Congress, Economy, Iraq, Middle East, President Bush, Taxes
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