By Jay Heflin - 08/19/10 09:38 PM EDT
"Today's projections from the CBO reinforces the need for continued work to bring down the deficit and further strengthen the economy, while also showing that Democrats' actions have had a positive impact," he said in prepared remarks.
"Democrats have taken steps to restore fiscal responsibility, including returning to the pay-as-you-go law that led to surpluses in the 1900s, creating a fiscal commission to put forward solutions to balance the budget, and passing a budget that cut spending," he added.
The CBO earlier today projected that the 2010 deficit would climb to $1.34 trillion, $27 billion lower than its last prediction in March.
CBO Director Douglas Elmendorf told reporters the change was "not much different" from past predictions.
"This is a case where no news is not good news," he said.
Elmendorf predicts a modest recovery to continue for the next few years.
Republicans are likely to use the faltering economy to argue for an extension of all the Bush-era tax cuts. Several rank-and-file Democrats support the extension.
Democratic leaders have vowed to extend the tax breaks benefiting the middle class and contend continuing tax cuts for the wealthy will worsen the deficit and not help to stimulate the economy.