Statement of U.S. Senator Lamar Alexander on the OMB Deficit Reduction Announcement

Posted on July 11, 2006

WASHINGTON, D.C. — U.S. Senator Lamar Alexander (R-TN) made the following statement today after the Office of Management and Budget released its Mid-Session Review which reports that the FY 2006 budget deficit is forecast to be $296 billion, 30 percent below the Administration’s February forecast: “Today’s announcement from the Office of Management and Budget brings more good news for American taxpayers. The economic growth generated by tax relief and efforts to restrain federal spending are continuing to reduce the deficit and will allow us to cut the deficit in half in 2008, a year ahead of the President’s goal. “There’s more work for Congress to do. We need to make the President’s tax cuts permanent. We also need to give the President a line-item veto tool to further restrain and eliminate wasteful spending in the budget. Forty-three governors have the line-item veto. I had it as governor of Tennessee, and it helped me to balance eight budgets. “We must continue to look for ways to reduce the spiraling costs of Medicaid, Medicare and Social Security by controlling the rate of growth. This entitlement spending makes up almost two-thirds of the entire federal budget.”