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The Daily Wildcat

The Daily Wildcat

 

Federal deficit spending will hit $1.5 trillion this year

WASHINGTON — Federal deficit spending will rise to $1.5 trillion this year, according to a report released Wednesday.

The report comes on the heels of President Barack Obama’s State of the Union address and in the midst of a burgeoning debate in Washington over federal budget cuts and spending, a front-line argument between Obama and congressional Republicans.

The report from the Congressional Budget Office said federal debt over the next decade will continue to balloon to unsustainable levels unless federal tax and spending policies change.

Republicans voted on Tuesday, before Obama’s speech, to revert federal spending to 2008 levels.

“”A few years ago, reducing spending was important. Today, it’s imperative,”” Rep. Paul Ryan, R-Wis., chairman of the House Budget Committee, said in the GOP’s official response to Obama’s speech. “”Instead of restoring the fundamentals of economic growth, (Obama) engaged in a stimulus spending spree that not only failed to deliver on its promise to create jobs, but also plunged us even deeper into debt.””

Democrats have slammed the GOP’s move Tuesday as a “”budgetless resolution.””

“”I want Republicans to take the deficit seriously — to join President Obama and Democrats in making the hard choices it will take to get out of debt. But so far, with the opportunity to finally back up their words, they’ve given our country a record of disappointment,”” Rep. Steny Hoyer, D-Md., the minority whip, said in a statement.

Lawmakers will soon face a showdown on spending when Congress must vote to approve raising the limit on the nation’s debt.

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