John Kerry: “about 16 months ago, we debated an $800 billion increase in the debt limit. At the time, this was the Bush…”

“about 16 months ago, we debated an $800 billion increase in the debt limit. At the time, this was the Bush administration's third request to increase the debt limit for a grand total of $2.2 trillion. During this debate, I discussed how in less than four-years, a 20-year $5.6 trillion budget surplus was turned into a $2.4 trillion deficit. I thought at the time the fiscal outlook could not get much worse and the budget situation would have to improve. Unfortunately, I was wrong. Since the last debate on increasing the debt ceiling, the administration has not submitted budgets that would put us on a path towards deficit reduction. As part of last year's budget resolution, Congress passed legislation that would reduce spending by almost $40 billion. Many of these cuts will impact those that have the least. Now Congress is in the process of wrapping up a $70 billion tax bill. When you combine the spending and the tax bill, the numbers do not add up to put us on a path towards deficit reduction. The combined total increases the deficit and increases the debt. The Bush administration's budget for fiscal year 2007 includes more of the same and the fiscal situation even gets worse. The administration estimates that the deficit for 2006 will be $423 billion, the largest in history. The projected surplus of $5.6 trillion that this administration inherited will now turn into a $3.3 trillion deficit, a reversal of $8.9 trillion.…”