Obama Says Republicans Would Lead U.S. Back Into Recession, Widen Deficit

President Barack Obama said House Republicans would reverse the U.S. economic recovery and increase the deficit, sounding a campaign theme before November elections that will determine whether Democrats retain control of Congress.

Obama, speaking in his weekly address on radio and the Internet, pounced on Republican opposition to funding clean- energy jobs, calls to repeal health-care overhaul legislation passed earlier this year and support for extending tax cuts for wealthy Americans without paying for them with spending reductions or tax increases.

“These are not new ideas,” Obama said. “They are the same policies that led us into this recession. They will take us backward at a time when we need to keep America moving forward.”

One-third of the Senate and all House seats are on the ballot in November. With the president’s party typically losing seats in the first midterm congressional elections, Republicans need a net pickup of 40 seats in the House of Representatives and 10 in the Senate to regain the control they lost in 2006.

A July 9-12 Bloomberg National Poll found Americans split, 43 percent to 43 percent, on whether they would vote for a Democratic or Republican House candidate in November. The figures include those who said they were leaning toward one party or the other.

Deficit Forecast

Obama’s radio speech followed his budget office’s forecast yesterday that this year’s deficit will be a record $1.47 trillion. Last year’s shortfall, during the recession that began under President George W. Bush, was $1.41 trillion.

Under the Republicans’ 2001 tax cut legislation, the reductions end next year. Obama has proposed extending them for families making less than $250,000 a year. Republicans want to extend them to everyone.

In the Republican response to Obama’s radio address, Representative Mike Pence of Indiana said his party would oppose allowing any of the Bush tax cuts to expire.

“The American people know we can’t tax and spend and bail our way back to a growing economy,” Pence said. “House Republicans opposed the Democrats’ failed stimulus bill, their national energy tax, their government takeover of health care, and House Republicans will oppose this tax increase with everything we’ve got.”

‘Partisan Attacks’

House Republican Leader John Boehner of Ohio took the unusual step of adding a second Republican response to Obama, saying the president was “resorting to partisan attacks, rather than working with Republicans to help the American people.”

“Washington Democrats’ policies have created uncertainty that has undermined our economy, shaken the confidence of the nation, and cost millions of American jobs,” Boehner said.

The Bloomberg poll found Americans blaming Bush more than Obama for the budget deficit and unemployment. Obama, meanwhile, has touted his $862 billion economic-stimulus program, saying it has created or saved 3 million jobs.

The budget office said the unemployment rate was projected to average 9.7 percent this year and 9 percent next year.

“I know times are tough,” Obama said. “I know that the progress we’ve made isn’t good enough for the millions of Americans who are still out of work or struggling to pay the bills.”

He also said he expected that the country would “harness the skills and ingenuity” to “reach a better day.”

To contact the reporter on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net.