White House says it will focus on deficits - Cap and Trade to "back burner" (Politico)

[jefferson_dem]

President Barack Obama plans to announce in next year's State of the Union address that he wants to focus extensively on cutting the federal deficit in 2010 – and will downplay other new domestic spending beyond jobs programs, according to top aides involved in the planning.

The president's plan, which the officials said was under discussion before this month’s Democratic election setbacks, represents both a practical and a political calculation by this White House.

<SNIP>

“Democrats have to reassure voters we are not being reckless,” said a Democratic official involved in the planning. “The White House knows this and that's why we'll be hearing a lot about reducing the deficit early next year. Democrats owned this issue for the past four years and cannot afford to cede it to Republicans now."

The big question for Obama – and the country – is whether the sudden concern about deficits will be more rhetoric than reality once his first State of the Union address concludes.

All presidents promise deficit reduction – and almost always fall short. There is good reason to be skeptical of this White House, too, on its commitment.

For starters, the White House has not dropped plans for an aggressive global warming bill early next year that will be loaded with new spending on green technology and jobs – that would be paid for with tax increases. Democratic lobbyist Steve Elmendorf says the White House focus on deficit reduction could easily kill the cap-and-trade effort. “I think this means cap-and-trade has to go to the backburner,” he said

<SNIP>

http://www.politico.com/news/stories/1109/29471.html

[Thrill]

1. Sounds like they are worried about mid terms if this is true

.

[geek tragedy]

5. Of course they're worried about midterms--they should be.

I'd be worried if they weren't worried.

At the same time, pandering to the deficit fanatics is necessary.

[Kokonoe]

2. OH NOs... Spending on Green technology and jobs.

How can the oiled up banks not fail and pull down all of us with Wall Street.

OK, just give me a green job.

[Renew Deal]

3. What election setbacks?

There are two new dems in the house. And the dems were expected to lose those local races.

[geek tragedy]

4. "the white house has not dropped plans for an aggressive global warming bill.'

But, some lobbyist says otherwise, so Republico goes with that angle.

[Onlooker]

6. Another Republican victory

Rather than raise taxes on the wealthy, let's continue to destroy the environment. Nonetheless, I doubt if the Obama campaign will get much by way of donations from the bankers, brokers mortgage lenders, and polluters they are reaching out to.

[BeyondGeography]

7. It would be politically delinquent to do anything but focus on economic health next year

[jefferson_dem]

8. Obama eyes domestic spending freeze (AP)

Obama eyes domestic spending freeze

WASHINGTON - The White House has told domestic agencies to assume their budgets will be frozen or even cut by 5 percent as it signals a big push to take on the deficit next year.

It's part of a White House drive to stem the flood of red ink after a year of stimulus spending aimed at boosting the economy.

As record deficits continue, White House budget director Peter Orszag said Friday it's imperative to start curbing the flow of red ink in coming years so as not to erode the fledgling economic recovery. But Orszag says it's a balancing act and that acting too fast could undercut the recovery.

http://www.msnbc.msn.com/id/33910089/ns/politics-white_house/?ocid=twitter

[Aramchek]

9. Politicon!