US Treasury Secretary John Snow on Tuesday renewed the Bush administration's pledge to reduce the federal budget deficit and called for private accounts in the Social Security government retirement program. "Tight controls on discretionary spending and increased revenue as a result of economic expansion are expected to cut the deficit in half, to well under 2 percent of GDP, by fiscal year 2009," he said in remarks prepared for delivery to an event held by the Mortgage Bankers Association.
The budget gap swelled to $412 billion in fiscal 2004, which ended September 30.
Snow, as key steps to maintaining US economic strength, cited overhaul of Social Security, tax code simplification, legislation allowing more domestic fuel production, and stronger oversight of government-sponsored mortgage finance enterprises Fannie Mae and Freddie Mac.
The Bush administration rules out raising the payroll tax to pay for Social Security benefits, which are projected to run short of funding as more Americans retire. "Even the most resilient economy can be devastated by dramatic tax increases," Snow said.
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