CBO Challenges Obama's Budget Claims

More taxes, less savings than claimed

President Obama vastly exaggerated the spending cuts and deficit reduction his budget plan would produce, while dramatically undercounting the level of tax hikes, according to a Congressional Budget Office analysis of his budget released Friday.

When Obama put out his budget in mid-April he said that it "will reduce our deficits by nearly another $2 trillion," and "does so in a balanced and responsible way, a way that most Americans prefer."

But the CBO report finds that Obama's budget will cut 10-year deficits by just $1.1 trillion, with annual deficits starting to rise again after 2017.

And far from being balanced, the CBO found that his plan's tax hikes would outweigh spending cuts by nearly 6 to 1.