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Democratic lawmakers charged that the tax cuts would increase the federal budget deficit, despite claims by Republicans that the tax cuts would pay for themselves by generating new jobs. "In five short years, the Republican Party failed economic policies have instigated $1.57 trillion in budget deficits and added $3 trillion to the national debt, " said House Minority Whip Steny Hoyer ( Md.).

Business Mlm Opportunity (AXcess News) Washington - During Fed Chairman Alan Greenspan's speech to the Federal Reserve Bank of Philadelphia Policy Forum it was not out of charactor for the out-going central bank head to preach about the U.S. budget deficit, especially considering that the bankers were there to discuss policy issues.But Greenspan alarmed bankers when he told them that "our budget position will substantially worsen in the coming years unless major deficit-reducing actions are taken."

The Bush administration is predicting job growth will average 175, 000 per month over the course of 2005. In London, Federal Reserve Board Chairman Alan Greenspan Friday said the recent dollar decline and likely action to narrow the U.S. budget deficit could stabilize and even cut the record U.S. trade deficit. The Federal Reserve Board chairman is in London for a meeting of finance officials from the world's richest industrial nations. Mr. Greenspan told a London conference that the voice of fiscal restraint, barely audible a year ago, has at least partially regained volume. President Bush is promising to reduce the U.S. fiscal deficit by half over the next four years., a key gauge of consumer sentiment, issued monthly by the University of Michigan, registered a slight decline in January. Spurred by consumer spending, the U.S. economy has been growing at about a four percent annual rate.

Based Business Home Income Meanwhile, President Bush delivered a picture of optimism Friday while speaking from the White House Rose Garden saying that the economy was improving and that spending was be restrained.

Billionby Voanews The U.S. budget deficit is projected to reach $ billion this year, biggest shortfall in U.S. history. If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. By joining, box first. Print This Page Jan 25, 2005 (AXcess News) The U.S. budget deficit is projected to reach $ billion this year, biggest shortfall in U.S. history.The deficit could go even higher once Congress approves more money for military operations in Iraq and Afghanistan.

Based Business Home Internet "We have every reason to be optimistic about our economic future," said President Bush. "I mean, when you think about the news that's come in, the jobs report, the recent report on strong economic growth, low inflation, strong productivity, lower gasoline prices, a strong housing market, increases in consumer confidence and business investment, our economic horizon is as bright as it's been in a long time."

Blunt also charged that Democratic lawmakers mistakenly believe that cutting taxes will increase the federal budget deficit, when in fact, tax cuts will spur economic growth. He said Democrats do not understand that raising taxes would decrease revenue by slowing the economy down.

Business Homebased Opportunity Greenspan promoted the reinstatement of the Budget Enforcement Act of 1990, saying that over the last ten years "many of the rules that helped constrain budgetary decisionmaking earlier in the 1990s--in particular, the limits on discretionary spending and the PAYGO requirements--were being violated with increasing frequency; finally, in 2002, they were allowed to expire."

Republicans countered that the expiring tax cuts have led to the current economic expansion, resulting in record revenues coming into the federal treasury and a lowering of the federal budget deficit. Continuing the tax cuts is necessary to continuing America's economic growth, according to GOP lawmakers.

Based Business Home Mlm "Reinstating a structure like the one formerly provided by the Budget Enforcement Act of 1990 would signal a renewed commitment to fiscal restraint and help restore discipline to the annual budgeting process," said Greenspan.

Business New Opportunity The Fed Chairman also said the the Social Security benefit program, as its presently administered, will not be able to make the payouts to the"baby boomers"sooner than had originally been expected unless the program is drastically overhauled.

Business Home Online "Currently, 3-1/4 workers contribute to the Social Security system for each beneficiary. Under the intermediate assumptions of the program's trustees, the number of beneficiaries will have roughly doubled by 2030, and the ratio of covered workers to beneficiaries will be down to about 2," said Greenspan.

Best Business Home Opportunity Medicare was another hot button for Greenspan, citing the fact that the aging baby boomers would become an economic burden to the U.S. economy unless significant progess could be made in productivity to offset those costs, and even then Greenspan believes, it will not be enough to weigh lightly on the U.S. budget deficit.

Business Investment "So long as health-care costs continue to grow faster than the economy as a whole, they will exert budget pressures that seem increasingly likely to make current fiscal policy unsustainable," said Greenspan.

Business Home Making Money Greenspan concluded by warning once again about dealing with the budget deficit, calling on lawmakers to make decsions as quickly as possible and then carry through on those commitments.

Based Business Free Home "Crafting a budget strategy that meets the nation's longer-run needs will become more difficult the more we delay.

"It falls to our elected representatives to determine how best to address the competing claims on our limited resources. In the end, the consequences for the U.S. economy of doing nothing could be severe. But the benefits of taking sound, timely action could extend many decades into the future," said Greenspan.