by Alex M. Parker

Congressional auditor backs some of the logic behind Obama's jobs push

While taking care to be nonpartisan, and to avoid policy prescriptions, Congressional Budget Office Director Doug Elmendorf seemed to endorse some of the logic behind President Obama's jobs plan while testifying at the first public hearing of the so-called super committee

Elmendorf was supposed to be talking about the origins of America's current fiscal woes, but in his opening statements, and in questions later, he told members of the committee that increasing the debt a bit in the short-term, while cutting the deficit in the medium and long-term was the "most efficient" way to create "a short-term economic boost and longer-term fiscal sustainability." Noting that hikes in taxes or slashes in government spending could harm the fragile economic recovery, Elmendorf said that reducing the deficit eventually would help the economy grow by stabilizing interest rates and freeing up cash. "That's not meant to imply that there aren't a number of factors," Elmendorf said while replying to questions. "That is the consensus of professional opinion."

Elmendorf confirmed two key talking points for both parties. For Republicans, he noted that increasing taxes could hurt job growth by taking money out of economy. For Democrats, he noted that slashing government spending could also do the same. But Obama may have also appreciated his comments that the wisest course of action may be to provide economic stimulus now, while enacting budget and deficit reforms later. His economic plan, which was submitted to Congress this week, calls for $450 billion tax cuts and government spending to boost job growth now, but would try to pay for it by eliminating tax loopholes and cutting some spending. Republicans have attacked the idea of using the tax cuts -- which Obama asked the super-committee to include in its debt reduction package -- as a way to pay for yet another round of spending.

The CBO director, appointed by the House and Senate leadership, is always in a tricky position, as he tries to play the sober referee amid an atmosphere of red-faced partisan shouting. Neither party wants to discredit the CBO too much, as they're always happy to tout a favorable score for their own legislation. But the CBO itself also wants to keep its image of impartiality, and Elmendorf has taken care not to take sides in the debate about whether deficit reduction should come from spending cuts, tax hikes, or a mix of both. He kept his neutrality on that issue today as well, but did note that the fewer policy options Congress considers, the more drastic the changes will have to be with what's left.

The super-committee was originally charged with finding $1.5 trillion in debt reduction by Thanksgiving, but Elmendorf told its committee members that in order to have a full estimate of the cost savings, the committee will likely have to submit legislation to it by early November. Its task was further muddied by Obama's request that the super-committee also tackle another $450 billion in debt savings as part of his jobs plan. During their two-hour meeting Tuesday morning, the committee members revealed little about whether they'd support a bigger package of cuts. "I think $1.5 trillion is a relatively small part of the problem," Ohio Republican Sen. Rob Portman hinted after the meeting, but didn't elaborate.

 

Obama Jobs Plan Seems to Get a Boost From CBO Chief