In a new analysis, the Committee for a Responsible Federal Budget, made up of former Congressional budget hawks and their allies, says President Obama’s new budget plan would reduce deficits by $2.5 trillion over 10 years, less than the Administration’s claim of $4 trillion over 12 years.
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When the White House announced the plan last week, reporters pressed Gene Sperling, director of the National Economic Council, for a 10-year deficit reduction number for the President’s plan and Sperling said it would be about $3 trillion. But the President and Administration officials continue to emphasize their 12-year target of $4 trillion when comparing their plan to Rep. Ryan’s plan – saying that the two sides are “close” on their deficit reduction numbers.
But by law, Congress can only consider 10-year projections in budgeting, so the new CRFB analysis gives us the first good “apples to apples” comparison.
The CFRB also includes an analysis of the Ryan plan, which it concludes would reduce deficits by $4 trillion over 10 years, compared with Ryan’s claim of $4.4 trillion in deficit reduction.
White House spokesperson Amy Brundage says that under the Administration’s estimates, the President’s framework saves $2.9 trillion over 10 years and $4 trillion over 12 years.
"Using CBO’s more pessimistic assumptions, the President’s framework would save more, not less, than these totals because the Debt Failsafe would result in the additional savings needed to reduce the debt as a share of the economy," Brundage said. "Even with the Committee for a Responsible Federal Budget’s shifting of the goalposts and failure to factor the failsafe in their analysis, they still confirm that the President’s plan would reduce the deficit substantially and prevent a large increase in the debt.”