President-Elect Says Budget Reform Is ‘Absolute Necessity’
Slowing tax revenues and a historic bailout of the U.S. financial system will send the budget deficit soaring toward $1 trillion this year, President-elect Barack Obama said yesterday, and the red ink stands to get substantially deeper if Obama wins approval of a massive economic stimulus plan.
Even if the package of spending and tax cuts helps restore the nation’s immediate economic health, Obama said, the government is likely to be left with “trillion-dollar deficits for years to come” unless policymakers “make a change in the way that Washington does business.”
“We’re going to have to stop talking about budget reform. We’re going to have to totally embrace it. It’s an absolute necessity,” the president-elect told reporters a day before the Congressional Budget Office is set to release its outlook for the coming year.