John Spratt: “let me put this budget in context. Two years ago we all hailed a projected $5.6 trillion surplus, and our colleagues on…”

“let me put this budget in context. Two years ago we all hailed a projected $5.6 trillion surplus, and our colleagues on the other side of the aisle bet the budget on that surplus, that blue-sky forecast. Two years later when the Office of Management and Budget sent us the budget for the next year, they acknowledged that was a vastly overstated estimate and that the surplus between 2002 and 2011 correctly estimated, accounting for the economy as we now see it, it is not $5.6 trillion, it is, according to the Office of Management and Budget, $2.4 trillion, and all of that has been committed. Now, there is a serious consequence that flows from that finding. It is simply this: Everything that is done in the way of tax reduction or spending increases over and above current services goes straight to the bottom line. There is no surplus anymore to mitigate or cushion it. It goes straight to the bottom line and adds to the deficit. Knowing this, knowing this, what do our Republican colleagues do? They call for $1.2 trillion in additional tax reduction, plus some big increases in defense and international affairs. What is the result? The result is that this year the deficit will be $347 billion. We will set a record. Back out Social Security, and the deficit is $512 billion. Next year, in 2004, as a result of the policy choices about to be made in this budget resolution, the deficit will go to $385 billion.”