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http://www.omniture.com --> Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Readers Photo Gallery Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Homelife Magazine Joy Magazine Readers Choice 2006 Oregon Golf Info Oregon Wine Info Our Valley Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend October 12, 2006 Deficit hits lowest level in four years Bush says it shows GOP is better for the economy, but Congressional Budget Office says long-term deficit outlook is bleak By DEB RIECHMANN The Associated Press WASHINGTON — The federal deficit fell to a four-year low in the budget year that just ended, a result President Bush pointed to Wednesday in claiming Republicans are better stewards of the economy than are Democrats. The administration said the deficit dropped to $247.7 billion — welcome news for Republicans struggling to keep control of Congress. Bush boasted he had made good on a 2004 campaign promise to cut the deficit in half over five years. "These budget numbers are proof that pro-growth economic policies work," Bush said. Democrats said the improvement in the 2006 federal deficit was a temporary blip. They predicted rising deficits for years to come unless policies are changed. Advertisement "Only a president with such a historically bad economic record would be this excited about a $248 billion deficit," said Rep. Carolyn Maloney, D-N.Y. "Under his watch ... record surpluses turned into record deficits as far as the eye can see." Republicans are trying to convince voters that the GOP champions tax cuts while Democrats will raise taxes if they gain control of Congress. Democrats contend the administration's tax cuts have primarily benefited the wealthy. The administration credits its tax cuts for the improving economy, contending they helped the nation withstand the 2001 recession, the terrorist attacks and corporate accounting scandals. The deficit narrowed sharply because revenues climbed by 11.8 percent, outpacing a 7.4 percent increase in spending. Administration officials said the actual 2006 deficit is down to 1.9 percent of the gross domestic product. They said that is below the 40-year average deficit of about 2.3 percent of the GDP, which measures the value of all U.S. goods and services. Still, the long-term deficit picture is bleak. The nonpartisan Congressional Budget Office projects that the deficit for the current budget year will rise to $286 billion. Over the next decade, the office forecasts that the deficit will total $1.76 trillion. Bush's critics argue that the White House is using sleight of hand when boasting about the deficit. The president can rightly state that he has fulfilled his 2004 campaign pledge to cut the deficit in half by the time he leaves office. In fact, he can say he has done it three years early. But in making that claim, the president is using the administration's original forecast of what the 2004 deficit was expected to be — not what it actually turned out to be. Back when Bush made his promise, the administration was predicting that the 2004 deficit would be $521 billion. That prediction turned out to be off by $100 billion. To achieve the feat of slicing the actual 2004 deficit number in half, the federal deficit Bush was highlighting would have to have dropped to $206 billion, not $247.7 billion. Democrats say the narrowing of the deficit will be temporary because when 78 million baby boomers retire, the cost of Social Security and the Medicare health care program for the elderly will soar. "The fact that some are trumpeting this year's deficit number as good news shows just how far we've fallen. Our budget picture is extremely serious by any measure," said Sen. Kent Conrad, the senior Democrat on the Senate Budget Committee. Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Windermere Van Vleet Men's Clothing Southern Oregon Loans --> GMAT Prep Fundraisers Send Flowers Texas Electric Choice Entertainment Guide --> Casinos Canada Trunks, Footlocker Online Casino Reviews Online poker at AbsolutePoker.com