Walberg Applauds Announcement of Lower Budget Deficit, Says More

Press Release

WALBERG APPLAUDS ANNOUNCEMENT OF LOWER BUDGET DEFICIT, SAYS MORE WORK LEFT TO DO

U.S. Congressman Tim Walberg (R-MI) today welcomed the federal government's announcement that this year's federal budget deficit will be nearly $40 billion lower than originally projected, which means that the deficit is less than half of what it was just three years ago.

"While today's news is evidence that tax relief continues to keep our national economy growing, our budget deficit is still too high and there is more work left to do," Rep. Walberg said. "Right now, Democrats in Congress are discounting advancements made possible by the 2001 and 2003 tax relief passed by Congress and are trying to slap U.S. taxpayers with a $400 billion tax increase that will slow our economy's current progress. Raising taxes hurts American families, discourages innovation and hinders job creation. We must restrain spending and keep tax relief permanent to ensure our budget deficit continues to evaporate and to foster further prosperity. Michigan families and businesses are struggling and the state government needs to stop taxing and spending our state into a single-state recession."

Congressman Walberg introduced H.R. 2734, the Tax Increase Prevention Act, which currently has 101 co-sponsors. This legislation will prevent the Democrats' proposed $400 billion tax increase.

The President and the White House's Office of Management and Budget (OMB) announced the new figures at 1 p.m. today as part of a midyear fiscal review. Originally projected to be $244 billion, the OMB says that the deficit will come in at about $205 billion. According to Bloomberg News, "…[T]he current deficit, at 1.5 percent of gross domestic product, is the lowest since 2002."

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