President
|
Vice President
|
First Lady
|
Mrs. Cheney
|
News & Policies
History & Tours
|
Kids
|
Your Government
|
Appointments
|
Jobs
|
Contact
|
Graphic version
Email Updates | Español | Accessibility | Search | Privacy Policy | Help
Printer-Friendly Version Email this page to a friend |
Welcome to "Ask the White House" -- an online interactive forum where you can submit questions to Administration officials and friends of the White House. Visit the "Ask the White House" archives to read other discussions with White House officials.
|
|
July 19, 2007
Steve McMillin
Hi all Good to be with you this afternoon. Today, the President is in Nashville, Tennessee talking about the good news on deficit reduction, and the importance of spending restraint in Washington so we can continue our progress towards a balanced budget. We are meeting the governments most pressing needs, while ensuring that American families can keep more of what they earn. The Administrations mid-year budget update showed that were making good progress in driving down the deficit to half of what it was three years ago - and just 1.5 percent of our total economy. The Federal budget deficit is now estimated to fall to $205 billion in 2007, a reduction of $43 billion or 18 percent from last year. Pro-growth economic policies, including tax relief, has been good for American taxpayers and the American economy, allowing small businesses, entrepreneurs and American workers to save more of their hard-earned money. And, this has helped fuel our economic growth, resulting in higher than expected tax receipts and driving down the federal deficit. We are on a path to achieving the Presidents goal of a balanced budget by 2012, with a $33 billion surplus. Achieving this goal, though, is dependent on Congress exercising spending restraint. Right now, Congress is not on track to hold spending to reasonable and responsible levels. The President is committed to keeping spending in check and will veto spending bills if they jeopardize deficit reduction and a balanced budget. I look forward to answering your questions. Sam, from Downingtown, PA
writes: Steve McMillin Frank, from Stratford Ct
writes: Steve McMillin Under the last budget President Clinton signed into law (FY 2001), non-security discretionary spending rose by 15%. The President's Budget would allow this category to increase by less than 1% in his FY 2008 Budget.
Under the Clinton Administrations policies, tax collections peaked in 2000 at 20.9% of GDP. The only other time taxes reached this high a level relative to our economy was in 1944, during World War II. Under President Bushs policies, including reductions in marginal tax rates, the marriage penalty, capital gains and dividend tax rates, and increased incentives for small business investment, taxes are estimated to be 18.8% of GDP this year, above the 40-year average of 18.3% of GDP. Whitley, from San Pablo, CA
writes: Steve McMillin For the U.S., it will open new opportunities in Korea that American companies have never had. It will allow American manufacturers, farmers, banks, insurance companies, a whole array of companies to sell into Koreas fast growing markets. We estimate that the US economy will benefit to the tune of $17 to $44 billion a year. What is more, the KORUS FTA will help the United States deepen and strengthen its trade and investment ties to one of the most economically dynamic parts of the world.
The agreement was concluded and signed in time to be taken up under Trade Promotion Authority, which is designed to streamline Congressional consideration of free trade agreements. So, the expiration of this authority for future trade agreements will not affect this one. This is the most commercially significant FTA the United States has concluded in nearly 20 years. The more public and their elected representatives know about KORUS FTA, the more likely they will be to support it. Michael, from NYC writes: Steve McMillin Treasury auctions occur regularly and have a set schedule, and the rates and yields are set through competitive bidding. Because Treasury securities are universally recognized as being the lowest-risk, highest quality, and most tradeable securities in the world, a wide variety of investors, including individuals, banks, businesses, pension funds, the Federal Reserve banking system, state and local governments, and foreign institutions hold Treasury Securities.
Even individuals like you or I can directly purchase U.S. Treasury securities through http://www.treasurydirect.gov. Frances, from NY writes: Steve McMillin
The financing comes from a variety of sources, including the general treasury -- your tax dollars -- and specific charges on the users of that infrastructure. For user-financed infrastructure, such as highways, the federal government needs to carefully monitor and restrain growth in spending in order to avoid gas tax increases and disruption of our construction program.
John, from Texas writes: Steve McMillin Michael, from Powell, Tn
writes: Steve McMillin The 2008 Budget builds on this record of spending discipline by holding the growth in non-security domestic spending to one percent, well below the rate of inflation. It proposes terminations or reductions of 141 discretionary programs, which would reduce spending by $12.0 billion in 2008.
The biggest challenge to our nations long-term fiscal health is the unsustainable growth in important programs like Medicare, Medicaid, and Social Security. Without reform, these entitlement programs will crowd out all other spending by 2040, including for defense, education and other domestic priorities. The President also proposed sensible changes to important entitlement programs, such as Medicare and Medicaid, which would save $92 billion over five years and $301 billion over ten years. More importantly, the Presidents mandatory spending proposals would begin to address the long-term problem of entitlements by reducing Medicares unfunded obligations by 25 percent.
Kelly, from Boston writes: Steve McMillin While the Budget eliminates funding for programs that are not results-oriented, like the Community Services Block Grant (CSBG), the President continues to support many programs that aim to reduce poverty, such as TANF, Head Start, and WIC. The average grantee does not rely on CSBG as its primary funding source and CSBG dollars make up less than 10% of the average grantees budget. CSBG funds are distributed on a formula basis with the same static group of grantees receiving dollars each year. For this reason, most grantees are not challenged to maximize their performance. The President remains committed to the national nutrition programs by providing funds to serve all eligible people who apply for Food Stamps, free or reduced price school meals, and WIC. Funding for the Commodity Supplemental Food program (CSFP) was eliminated because this program provides the same services as the nations two largest and most effective nutrition programs Food Stamps and WIC. Its worth noting that Food Stamps and WIC have two important advantages over CSFP. Food Stamps and WIC are available to all eligible people who apply nationwide, while CSFP only operates on a limited basis in select areas. In addition, Food Stamps and WIC provide generally larger, more flexible benefits than CSFP. To help move CSFP participants onto Food Stamps and WIC the President has proposed increasing funding for these programs. For WIC, there is a $183 million increase over 2007 to serve all eligible individuals who apply, including those exiting CSFP, and there is an additional $24 million for outreach and temporary benefits to move more elderly CSFP participants onto Food Stamps.
Steve McMillin For further information on the Mid-Session Review Report or any other questions you may have, visit our website at www.omb.gov. |
Printer-Friendly Version
Email this page to a friend
Issues
more issues