U.S. Rep. Frank Guinta statement on CBO Director's testimony about annual budget & economic outlook

“Another Year of a Trillion Dollar Deficit Is Unacceptable;

Four Straight Years Are Inexcusable.”

(Washington, DC – February 1, 2012)    Representative Frank Guinta (R, NH-01) issued the following statement after Congressional Budget Office (CBO) Director Douglas Elmendorf’s testimony at today’s House Budget Committee hearing. The CBO released its annual Budget and Economic Outlook yesterday.   Representative Guinta is a member of the House Budget Committee.

The new report projects the federal government’s budget deficit will exceed $1 trillion for the fourth year in a row.  With the national debt on pace to grow to unsustainable levels in the years ahead, the CBO estimates that economic growth will remain sluggish and the unemployment rate will exceed 9 percent in both 2013 and 2014. (Click here to view the report).

“Another year of a trillion dollar deficit is unacceptable; four straight years are inexcusable. This new report underscores an undeniable fact: the fiscal disaster of crushing debt and ballooning deficits are no longer a problem on the horizon for future years; they’re now today’s problem.  If we don’t reverse course from the failed policies of out of control spending, the country we will leave to our children and grandchildren will be far different from the one we know today.  Politicians from both parties are responsible for creating our national debt, and it will take both parties to get us out of it. 

“We must work together to solve this problem.  For that to happen, the Senate needs to finally join the House in passing a federal budget, and the Obama Administration must reverse course and embrace the pro-jobs policies Americans are demanding.”

CEI Weekly: Congress Should Start Quantifying Federal Regulation

Friday, October 7, 2011

Feature: CEI Vice President for Policy Wayne Crews outlines ways for Congress to keep regulations in check.

FEATURED STORY: Congress Should Start Quantifying Federal Regulation CEI has released a new Issue Analysis by Vice President for Policy Wayne Crews: "The Other National Debt Crisis: How and Why Congress Must Quantify Federal Regulation." Crews argues that the federal government must start holding itself truly accountable for the costs it is forcing on struggling American businesses if the nation is to pull itself out of its current economic slump. Read the full Issue Analysis here. SHAPING THE DEBATE Free Trade Without Apology Fran Smith and Nick DeLong's CEI OnPoint CEI Onpoint Why Your Bank is Charging New Fees John Berlau's op-ed in National Review Rising China: The Seen and the Unseen Bill Frezza's op-ed on RealClearMarkets Time Out for Federal Regulation Wayne Crews' column in Forbes Nobel Prize for Physics Ryan Young's op-ed in The Daily Caller Stimulus Slows Our Economy Iain Murray and Dave Bier's op-ed in The Washington Times Clean Air's Dirty Residue Iain Murray's op-ed in The American Spectator Book Review: Force of Nature Angela Logomasini's book review in The Washington Times Today's Red Tape Would Have Killed Home Depot's IPO John Berlau's letter to the editor in The Wall Street Journal Capital Gains Tax Far Too High Hans Bader's letter to the editor in The Washington Times

CEI PODCAST October 6, 2011: How to Deregulate the Economy Vice President for Policy Wayne Crews is author of the new CEI study, “The Other National Debt Crisis: How and Why Congress Must Quantify Regulation.” He discusses a few of his many ideas for deregulating the economy, including a regulatory budget, improved cost analysis, and lowering the threshold of “economically significant” regulations from $100 million to $25 million. This would require OMB to review more than the roughly 5 percent of new rules that it currently analyzes. The other 95 percent should not slip through the cracks. BEST OF THE BLOGS Occupy Wall Street Protestors Make Demands By Ryan Young The Legal Battle Over Honolulu's Train to Nowhere By Marc Scribner Arctic Ice Loss: Portent of Doom or Reason to Rethink IPCC Climate Sensitivity Assumptions By Marlo Lewis Rushing Headlong Over a Cliff By Marita Noon

ALG - CBO Long-Term Projections Don't Show True Extent of Debt Crisis

June 23rd 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement commenting on the Congressional Budget Office's latest long-term projections on the growth of the national debt:

"The debt crisis is worse than we are being told.  The CBO analysis does not take account of the gross $14.344 trillion national debt, nor does it reflect the $430 billion in gross interest payments we are paying every year.  In addition to 'debt held by the public,' there is debt owed to the Medicare and Social Security trust funds, and which interest is owed to as well. 

"These are real liabilities that the American people are expected to honor, and do honor under CBO's analysis.  But they are not revealed until 2024 and 2036, when the trust funds are fully exhausted.  Why? It's just an accounting gimmick that hides the full extent of the debt crisis.

"Because those liabilities are not fully taken into account, even the dire scenarios that are presented to the American people are actually rosy.  We cannot afford to wait 15 to 25 years to be honest about the debt burden we have taken on.  It's real, and the problem is now, not in 2021, nor 2024, nor 2036.  It's now.

"For example, the American people are not advised that the national debt will actually be larger than the entire economy in 2012 if not sooner.  At $14.344 trillion, the national debt already represents 95.5 percent of the $15.010 trillion Gross Domestic Product.  Yet the CBO reports the debt will not be larger than the economy until 2021.

"Nor are the people warned that total interest payments already exceed the 18 percent of revenue red flag level Moody's has explicitly warned against as being unaffordable.  Will Moody's wait until 2024 and 2036 to discover that interest payments suddenly jumped?

"That said, the CBO's projections are really, really bad.  They point to the need for every member of Congress to take the 'Cut, Cap, and Balance' pledge, which would immediately cut spending by hundreds of billions, cap it at 18 percent of GDP, and send a Balanced Budget Amendment to the states for adoption.  Time is running out for Congress to take meaningful action to avert a true crisis."

ALG - Deficit Grows to $1.5 Trillion, ALG Urges Action Now

January 26^th, 2011, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today urged congressional action to reduce the 2011 budget deficit, which the Congressional Budget Office now projects will be record $1.5 trillion this year:

"Once again, the budget deficit is growing under Obama's watch, this time to $1.5 trillion, mostly because of the unpaid-for $56 billion extension of unemployment benefits and a $120 billion cut in payroll taxes on employees from December's tax deal.  Because there were no offsetting spending cuts for these items, we are just digging ourselves deeper into a hole of a debt that surely will hinder the economy for some time to come.

"It is now up to House Republicans to put serious spending cuts on the table.  Barack Obama is merely proposing a discretionary spending freeze, which will institutionalize spending at its record-high levels and do nothing to decrease the deficit.  This is a pathetic proposal that merits no serious consideration.

"Representatives Jim Jordan and Scott Garrett and Senator Jim DeMint have proposed $173 billion of discretionary spending cuts over the next two years, $16.1 billion in cuts to Medicaid, end the 'stimulus' saving $45 billion, and ending government ownership of Fannie Mae and Freddie Mac, saving another $30 billion.  These cuts represent a good start, and could be attached to a continuing resolution due to expire on March 4^th.  But more must be done.

"Congress needs to put so-called 'mandatory' spending on the table for immediate consideration. This spending is on autopilot, and if Congress does not act, will continue to increase year on end.  As much as $460 billion of cuts could be attached to an upcoming vote to increase the national debt ceiling above $14.294 trillion.  Combined with the Garrett-Jordan-DeMint proposal, the savings would total $725 billion, cutting the deficit in half.

"Politicians like Obama need to stop fiddling while Rome burns. Spending needs to be cut significantly, not frozen.  And it's up to House Republicans to put those cuts on the table before it is too late."

Attachments:

"Spending Cuts Have to Start Somewhere," ALG President Bill Wilson, January 24^th, 2011.

"'Mandatory' Spending and the Budget Fairy," ALG President Bill Wilson, January 12^th, 2011.

"Obama's Budget 'Freeze'," Robert Romano, ALG Senior Editor, January 26^th, 2011.

NRCC - Shea-Porter Defies American People, Refuses to Stop Obama Tax Hike

CBO Says Scheduled Tax Increases Will Hinder Economic Recovery

Washington- Congress is scheduled to adjourn today or tomorrow, and vulnerable House Democrats like Carol Shea-Porter are ready to bolt without calling for an open and fair debate or taking an up-or-down vote on the looming Obama tax hike. The country continues to suffer under the consequences of the Democrats’ failed economic agenda, yet Shea-Porter has done nothing to spare the American people from this devastating tax hike set to take effect at the first of next year. As struggling middle-class families and small businesses across the country brace for impact, the non-partisan Congressional Budget Office (CBO) reports that without action from Congress the scheduled tax increases will further impede economic recovery:

“The Economic Outlook released by the Congressional Budget Office (CBO) on Tuesday states that coming tax hikes will hinder spending and hurt recovery efforts.

‘[The] scheduled increases in taxes and the waning of fiscal policy measures that supported the economy earlier in this recovery will hold down spending, especially in 2011,’ it states. ‘The weak demand for goods and services resulting from those various factors is the primary constraint on economic recovery.’” (Jay Heflin, “CBO: Scheduled tax increases will hinder recovery,” The Hill, 09/28/20)

“While Obama continues to push House Democrats to increase taxes on small businesses, Carol Shea-Porter and her Washington friends who continue to remain silent are neglecting to listen to the people back home that put them in office,” said NRCC Communications Director Ken Spain. “American families are pleading for Democrats to stop the impending Obama tax hike and nonpartisan economists warn of the devastating consequences that Congress’ inaction will have on the economy – yet it seems that vulnerable Democrats like Carol Shea-Porter are the only ones who still have not received the message.” 

With Democrats still divided and likely punt on the Obama tax hike altogether, American families and small businesses can expect more economic uncertainty in the coming months:

“House Democrats are still wavering on whether they will hold a vote to preserve Bush-era tax cuts before lawmakers leave Washington later this week for the midterm elections.

“And Democrats are further divided over which tax cuts they should renew.”

“Democrats won't commit to taking any action on tax cuts. But Hoyer told reporters late Tuesday that a decision on that would be made ‘soon.’” (Chad Pergram, “Democrats Divided on Tax Breaks,” Fox News, 09/28/10)

If Democrats like Carol Shea-Porter skip town and make their re-election hopes a priority over that of American families, they will be giving voters one more reason to replace the arrogance and irresponsibility of this current Congress on Election Day.

Visit the NRCC’s Democrat Tax Tracker for more information.