–White House Budget Chief: FY’12 Plan Is ‘Meaningful Downpayment’
–Plan Gives U.S. ‘Sustainable Deficit’ By Mid-Decade
–Simplified Corp Tax Reform Could Lower Rates
–Need ‘Bipartisan Conversation’ on Social Security Reform
–Budget Is ‘Most Constructive’ Way To Advance Budget Talks
–Bipartisan Agreement That It’s Not ‘Prudent’ To Shut Gov

By John Shaw

WASHINGTON (MNI) – White House budget director Jack Lew said Monday
that President Obama’s fiscal year 2012 budget would bring stability to
American fiscal policy, setting the stage for a bipartisan agreement
that would further improve the nation’s fiscal outlook.

“It accomplishes the goal of stabilizing our budget,” he said at a
press briefing, adding that President Obama’s new budget would give the
U.S. a “sustainable deficit by the middle of the decade.”

“This budget is a downpayment. It’s a meaningful downpayment,” he
said.

“It cuts spending and crucially cuts the deficit,” Lew said.

Lew repeated that the president’s budget would secure $1.1 trillion
in ten year savings, with two-thirds of the savings coming from spending
and one-third from revenues.

Lew said the plan also provides for “critical areas of investment”
such as education and infrastructure.

He added that bipartisan talks are needed for tax and Social
Security reform. “Social Security is something we need to address in the
long-term,” Lew said, adding this should be done in a “bipartisan
conversation.”

The White House budget chief repeated the administration’s support
for corporate tax reform, saying a successful effort to simplify the
corporate tax code and remove exclusions and deductions could result in
lower tax rates.

When pressed if the administration’s budget is adequate given the
huge fiscal challenge the U.S. faces, Lew signalled that the budget is
the opening bid in a negotiation with Congress.

“We have done what’s most constructive, most productive,” Lew said.

Lew said the White House is closely following the work of House
Republicans to pass a stop-gap spending bill this week that cuts
spending in fiscal year 2011 by about $61 billion compared to the
previous year’s level.

“It’s clearly a deep set of reductions,” he said, adding that it
would be wrong to “throw the brakes on right away” by passing large
spending cuts.

Lew added that there is a bipartisan consensus that “it would not
be prudent to shut the government down.”

The current-stop gap spending bill expires on March 4.

** Market News International Washington Bureau: (202) 371-2121 **

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