Orszag Backs Bush Tax Cuts Extension

Former Director of the Office of Management and Budget Peter Orzag said Tuesday that Congress should work towards extending the Bush tax cuts for two years, at which point he said they end, permanently.

In his first New York Times column, Orszag said he believes the best way to handle the country’s short term jobs problem and a growing deficit for the long term is to temporarily extend the tax cuts set to expire this year.

“In the face of the dueling deficits, the best approach is a compromise: extend the tax cuts for two years and then end them altogether,” Orzag wrote.

The former OMB Director also said he believes that higher taxes would reduce consumer spending, severely affecting the demand for products across the boards. While permanently extending these tax cuts would increase the deficit by nearly $3 trillion over the next ten years, Orszag argued that the tax cuts are simply not affordable and, by letting them expire, an already stalled jobs market will be dealt a heavy blow, worsening its status.

Orszag said this is not a time for partisan politics, but rather a time where Congress and the administration need to work together to solve the “One Nation, Two Deficits” problem facing the country.

“Both approaches lock us into a budget scenario out of which there are few politically plausible routes of escape,” Orszag said. “Senate Democrats and Republicans almost never come together anymore, [and] this month, they should fight the dual deficits rather than each other. Let’s continue the tax cuts for two years but end them for good in 2013.”

Bridging IT Gap Is Key To Government Modernization, Says Orszag

By Sarah Mamula - Talk Radio News Service

Peter Orszag, Director of the White House Office of Management and Budget, believes that bridging the information technology (IT) gap between the government and private sector is “the single most important step we can take in creating a more efficient and productive federal government.”

“President Obama has undertaken a far-reaching effort to modernize and reform government,” said Orszag during remarks at the Center for American Progress Tuesday. “The IT gap is the key differentiator between our efforts to modernize government and those that have come before.”

Orszag emphasized the importance of aligning the government sector with the private, and outlined ways in which increased IT benefits the efficiency of federal agencies.

For example, the Department of Homeland Security has added an online tracking service for visa and citizenship applications where users can go online to check the status of their applications without having to send letters in the mail and wait for a response.

The government is also using IT to increase the sharing of information between agencies to reduce the $100 billion a year of improper payments, which is especially important to Medicare, where the largest problems of improper payments occur.

“In months ahead, we will be looking to unveil more of these technology-driven solutions,” said Orszag, who added that closing the IT gap will “increase productivity and responsiveness, efficiency and customer service” within the federal government.”

Republican Gregg: Orszag, Obama Administration Could Be Skirting Law Through TARP Fund Use

By Laurel Brishel Prichard University of New Mexico/ Talk Radio News Service

Office of Management and Budget Director Peter Orszag defended President Barack Obama’s proposed budget for fiscal year 2011 during a Senate Budget Committee hearing Tuesday morning.

Many of the members on the committee experessed their concern over using repaid Troubled Assets Relief Program (TARP) funds as a “piggy bank” to fund the small business tax credit program that Obama has proposed.

“That's not what this money is for. This money is to reduce the debt of our children that we are passing onto our children, and you ought to at least have the integrity to be forth right about it and say that’s what your doing,” said Sen. Judd Gregg (R-N.H.)

Gregg’s attack on Orszag, that included accusations of not following or knowing the law, lead to Senator Bernie Sanders (I-Vt.) breaching common norms of the committee hearing by speaking out before being recognized.

“Congress can amend the law tomorrow. What [Orszag] is indicating is he’s going to Congress to amend the law,” said Sanders.

Sen. Ben Nelson (D-Neb.) did commend Orszag for "trying to get [his] hands around this budget deficit and the problems facing the country.”

Orszag Promotes Cost Containment Measures In Senate Health Care Bill

White House Office of Management and Budget Director Peter Orszag attempted Wednesday to mitigate cost concerns surrounding the Senate’s health care reform legislation, explaining that significant measures have been put in place to ensure fiscal responsibility.

“The bottom line is the bill that is currently on the Senate floor contains more cost containment ... than any bill that has ever been considered on the Senate floor. Period,” said Orszag during a media breakfast hosted by health policy journal Health Affairs.

One key cost containment measure outlined in the Senate bill is the establishment of an independent commission dedicated to reducing Medicare costs. Orszag noted that while he was pleased the committee was included, it could eventually be strengthened.

Orszag reminded reporters that both the House and Senate bills are being subjected to paygo provisions, which means that costs from the bills will be offset by making reductions elsewhere.

The director took issue with the amount of attention the public option has received in the health care reform debate and expressed concern that Americans may be neglecting more important issues addressed by reform, such as regulations arising from the exchange that will provide more competition among insurance providers and ultimately lower premiums.

Obama Administration Must Pay For Afghanistan Mission Says Liberal Think Tank

By Leah Valencia - University of New Mexico/Talk Radio News Service

Several Center for American Progress (CAP) officials said during a conference call Monday that the United States must find a sustainable method to fund the cost of the war and military aid in Afghanistan.

“It is important, and I can’t stress it enough, that we do not continue to accumulate more debt and borrow more money to deal with this situation,” said CAP Senior Fellow Lawrence Korb.

The CAP discussion took place on the day before President Barack Obama is scheduled to reveal his new strategy in Afghanistan. With military operations expenditures in Afghanistan on the rise - current costs amount to an average of $3.6 billion per month - Obama has been under pressure to explain how the U.S. will continue to fund future efforts there.

“It has been a disgrace that we have fought these two extended conflicts, in Iraq and Afghanistan, without paying for them; it is time to stop that now,” Korb said. “This is the first extended conflict we fought, where we have basically borrowed money.”

Obama is expected to send 30,000 additional troops to Afghanistan, 10,000 fewer than were requested earlier this year by NATO Commander General Stanley McChrystal.

White House budget director Peter Orszag has estimated that sending an additional 30,000 troops there will cost the U.S. an additional $30 billion dollars a year.