WDAY.com

WDAZ: Your Home Team

Published January 27, 2010, 10:17 AM

Senate Rejects Deficit Task Force Amid $1.35T Deficit Projection

The Senate says no, but President Barack Obama will reportedly say yes by executive order to establishing a bipartisan task force to tackle the federal deficit this year.

The Senate says no, but President Barack Obama will reportedly say yes by executive order to establishing a bipartisan task force to tackle the federal deficit this year.

The New York Times reported late yesterday on its Web site that Obama will announce his intention during today's State of the Union address.

The alternative panel championed by Budget Committee Chairman Kent Conrad will come up with recommendations by December to reduce annual budget deficits and slow or reverse the growth of the national debt. But the commission could not force Congress to vote on any suggestions.

The nonpartisan Congressional Budget Office predicts a $1.35 trillion deficit for this year as the economy continues to slowly recover from the recession.

Economists say sustained high deficits would force interest rates higher and "crowd out" private investment.

Tags: