Obama bans 4 accounting gimmicks Bush used to make deficit projections look smaller

[babylonsister]

Obama Bans Gimmicks, and Deficit Will Rise

By JACKIE CALMES
Published: February 19, 2009


WASHINGTON — For his first annual budget next week, President Obama has banned four accounting gimmicks that President George W. Bush used to make deficit projections look smaller. The price of more honest bookkeeping: A budget that is $2.7 trillion deeper in the red over the next decade than it would otherwise appear, according to administration officials.

The new accounting involves spending on the wars in Iraq and Afghanistan, Medicare reimbursements to physicians and the cost of disaster responses.

But the biggest adjustment will deal with revenues from the alternative minimum tax, a parallel tax system enacted in 1969 to prevent the wealthy from using tax shelters to avoid paying any income tax.

Even with bigger deficit projections, the Obama administration will put the country on “a sustainable fiscal course” by the end of Mr. Obama’s term, Peter R. Orszag, the director of the Office of Management and Budget, said Thursday in an interview. Mr. Orszag did not provide details of how the administration would reduce a deficit expected to reach at least $1.5 trillion this year.

Mr. Obama’s banishment of the gimmicks, which have been widely criticized, is in keeping with his promise to run a more transparent government.

more...

http://www.nytimes.com/2009/02/20/us/politics/20budget.html?ref=us

[Skink]

1. Does this guy ever stop.

[spinbaby]

2. Dontcha love it?

Honesty back in government and it's about time.

:-)

[zbdent]

3. "Slobbering" "liberal media" reaction:

"Look! He's made the economy even worse! Look how the deficit went haywire after he took office!"

[babylonsister]

5. Yup.

That's one reason I reworded the title, because you know it's going to happen.

[GodlessBiker]

7. *'s budgets with have *s next to them.

[blondeatlast]

11. So true, so true. nt

[mopinko]

4. it'll be interesting to see who reports this honestly and who doesn't.

we'll find out who our friends are. (not like we don't know.)

[Frustratedlady]

6. It's refreshing to have our past thoughts acknowledged as true.

We knew he was manipulating numbers in all kinds of departments. I'm sure this is just one area that will be revealed.

We should start making a list/file of these exposures. I'm sure this is just a tip of the iceberg that is about to hit us....or, was that the bump in the night?

[blondeatlast]

8. A good start--let's hope he does the same with the nasty tweaks W did to make the economy

and unemployment look better.

I'm betting that he will, too.

I like this guy, really I do.

[originalpckelly]

9. Will they continue to rob the Social Security trust fund surpluses to reduce the deficit?

Like both sides have done going back years and years?

[Festivito]

10. Wow, no more ANNUAL "emergency" appropriations.

No good deed goes unpunished. There will be payment exacted for honesty like that.