Obama: “We’re More Than Halfway Towards” Stabilizing Debt

February 25, 2013 at 2:08 pm

Here’s the report from the Washington Post:

When President Obama delivers his State of the Union address Tuesday evening, here’s one thing you won’t hear: an ambitious new plan to rein in the national debt.

In recent weeks, the White House has pressed the message that, if policymakers can agree on a strategy for replacing across-the-board spending cuts set to hit next month, Obama will pretty much have achieved what he has called “our ultimate goal” of halting the rapid rise in government borrowing.

“Over the last few years, Democrats and Republicans have come together and cut our deficit [over the next decade] by more than $2.5 trillion through a balanced mix of spending cuts and higher tax rates for the wealthiest Americans,” Obama said during his weekend radio address. “That’s more than halfway towards the $4 trillion in deficit reduction that economists and elected officials from both parties say we need to stabilize our debt.”

By the administration’s math, Washington needs to enact only $1.5 trillion more in 10-year savings to hit the $4 trillion target, White House economic adviser Jason Furman told reporters last week. At $1.2 trillion, the automatic cuts, known as the sequester, quite nearly fit the bill.

Click here to read more.