CBO: Spending-Driven Debt Crisis “Daunting,” Threatens Jobs
The latest long-term budget outlook by the nonpartisan Congressional Budget Office (CBO) concludes what the American people already know: federal spending is on unsustainable path and poses a real threat to American jobs and economic growth. To date, Republicans are the only ones with a serious plan to pay down our debt and spur job growth without raising taxes.
The CBO report says “the budget outlook, for both the coming decade and beyond, is daunting,” and the current trajectory of “spending growth would cause federal debt to grow to unsustainable levels” if Washington doesn’t take action. Here’s what that means for families and small businesses:
- FEWER JOBS: “…large budget deficits and growing debt would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment—which in turn would lower income growth in the United States.”
- HIGHER TAXES: “Higher levels of debt imply higher interest payments on that debt, which would eventually require either higher taxes or a reduction in government benefits and services.”
Republicans passed a budget that would pay down our debt over time, spur job growth, and save programs like Medicare for current and future retirees. Republicans have also insisted that spending cuts exceed any increase in the debt limit requested by President Obama, and the GOP jobs plan prevents tax hikes and removes barriers that are holding back job creation.
The Democrat-run Senate, however, hasn’t passed a budget in more than two years (784 days, to be exact). Instead, Democratic leaders are calling for more of the same “stimulus” spending and job-crushing tax hikes, and are backing a plan that would bankrupt Medicare. They have no plan to create jobs.
Speaker Boehner responded to the report with a warning for Democrats stuck on the status quo:
“To solve our debt crisis we need to grow our economy. But we can’t grow our economy and create new jobs if the Democrats who run Washington keep threatening job creators with higher taxes, excessive regulations, more spending and bigger deficits. The American people understand that solving our challenges requires serious action, and I hope President Obama will start listening and work with Republicans to stop spending money we don’t have, remove the barriers that are holding back job growth, and pay down our debt without raising taxes.”
The American people understand what’s at stake. A new Bloomberg News survey found “[a] majority of Americans say job growth would best be revived” by Republican solutions, including “cuts in government spending.”