Steven Thomma: Obama Misstates Facts About Debt Plan!

President Barack Obama got some of the major points wrong when he unveiled his plan to curb projected federal budget deficits. Here's what he said Monday, and how it was wrong. "Today, I'm releasing a plan that details how to pay for the jobs bill, while also playing down our debt over time." In truth, the national debt would increase every year under his plan. According to White House figures, the debt held by the public would increase from $10.2 trillion this year to $17.5 trillion in 2021. According to Republican staff of the Senate Budget Committee, gross debt, which includes not just debt held by the public, but also that held by federal agencies, would increase from $14.9 trillion to $24.6 trillion. While Obama claims that his is a plan to reduce debt by more than $4 trillion, the plan does NOT reduce debt! Assuming that the president misspoke and meant to say the plan would cut projected DEFICITS by $4 trillion over 10 years, that would also be wrong! First, his plan totals $3.6 trillion in proposed tax increases, spending cuts, and interest savings. To get a figure of more than $4 trillion in spending cuts, he counts the $1.2 trillion in spending cuts already enacted over the summer. Second, while he counts the $866 billion in added revenue from letting the Bush tax cuts expire for incomes above $200,000 as he proposes, he doesn't count the cost of extending the Bush tax cuts for incomes below $200,000 as he also proposes.