Obama Said to Call for 5-Year Federal Spending Freeze

[somone]

http://www.bloomberg.com/news/2011-01-25/obama-is-said-to-call-for-five-year-freeze-on-u-s-discretionary-spending.html

Obama Said to Call for 5-Year Federal Spending Freeze
By Nicholas Johnston and Roger Runningen

President Barack Obama will propose tonight a five-year freeze of non-security discretionary spending as a way to reduce the federal government’s budget deficit, according to an administration official.

Obama plans to offer the freeze in his annual State of the Union address to Congress, the official said on condition of anonymity. It would extend the three-year freeze Obama proposed last year by an additional two years, to 2015.

The spending freeze will be part of an address to the nation that also will focus on accelerating the U.S. recovery and maintaining the nation’s competitiveness in the global economy.

“The president’s plan would cut spending more over the five years than the Republican plan,” said Stan Collender, a former congressional budget analyst and managing director at Qorvis Communications in Washington. He said a rough estimate of savings from the freeze would be about $165 billion over the five years it’s in effect... Austan Goolsbee, chairman of the White House Council of Economic Advisers, said Obama would consider lowering corporate taxes, among a variety of proposals to boost the economy...

[bluestateguy]

1. wouldn’t apply to SS, Medicare, Medicaid, defense, Homeland security, interest on the debt

which doesn't leave a whole lot, making this a rather symbolic gesture to get praise from pundits ans newspaper editorial boards.

Unemployment benefits are extended through the end of the year already, BTW.

[AngryAmish]

2. National Helium Reserve - FROZEN!

[Larkspur]

3. Our corporations hardly pay any taxes, so lowering them further won't help our economy

I feel that Obama is saying "we can have and eat our cake at the same time." I don't think so.

[jwirr]

4. In a recession caused partially because of personal debt that keeps

people from spending and they answer this by cutting more spending? So now no one is going to be buying? Sounds like we had better prepare for all the businesses closing due to lack of spenders.