http://www.whitehouse.gov/ask/20041007.htmlMichael, from Boston writes:
The budget deficit is a huge burden on our future economy. While I am all for the tax cuts, why aren't there an equal amount of spending cuts to balance the budget? Less taxes and less government bureaucracy...Wouldn't that be better for the economy?
John Snow: Thanks for your question, Michael, you raise an important issue. The budget deficit is unwelcome, but it is understandable, and the President is taking on the essential job of its reduction. We have already seen recent progress, as our growing economy is increasing Treasury receipts. Now we need Congress to adopt the President's budget, which will cut the deficit in half over the next five years, bringing it to a historically low level in relation to Gross Domestic Product (GDP). Spending restraint is part of the President's plan, and I agree with you that spending is an equally important part of the budget deficit equation.
But at the time when we needed tax cuts to stimulate our economy, we also had the need to fight a war unlike any that had ever been fought in history: the war on terror. We are fighting an enemy that requires a much broader variety of government resources than anything we've ever confronted. And we began this fight when we were economically wounded. What's most important to remember is that we will be able to fight this war and climb out of the deficit. We can manage this deficit, and we can cut it in half over the next five years by controlling spending and growing our economy.
NOTE: I am at my "4 paragraph limit," so I encourage you to go to the URL and read the full "Ask The White House" article from today so you can experience THIS comment from Snow in its full context:
"The economy truly is in good shape, we base our statements on facts. The President's economic leadership has contributed to one of the strongest years of GDP growth in 20 years, and this growing economy has created 1.7 million new jobs over the past year. Homeownership is at an all-time high, consumer confidence is strong and even the hard-hit manufacturing sector is generating jobs. All of our underlying fundamentals are strong. Of course there is more to do - we won't be satisfied until every American who is seeking work can find a job - but if we continue to move forward with the President's pro-growth policies, there is no doubt in my mind that we will continue on this positive path and America's best economic days are ahead of us. Again, while we are encouraged by the direction the economy is going, we are still not satisfied."