Today’s analysis by the Congressional Budget Office [CBO] is more than a summary of the Federal Government’s current fiscal condition. It is a report card on the first budget produced by a Democratically controlled Congress – and it shows a failing grade. After 3 straight years of significant reductions, the deficit under the fiscal year 2008 budget will more than double this year, to $407 billion, according to CBO’s annual mid-year report, The Budget and Economic Outlook: An Update. Spending and debt also have increased sharply this year; and the Democrats repeatedly have proposed higher taxes, including the largest tax increase in history.
Numerous factors affect the Federal deficit, and many are outside the control of Congress. But under the same standards Democrats have applied to Republicans since 2001, they are fully accountable for the deficit and debt. In one respect, at least, this is fair: the Majority controls the Congress; and Congress, not the President, has the power of the purse.
The Democrats’ fiscal policy failures can be summarized as follows:
- They have more than doubled the Federal deficit.
- They have increased the national debt this year by the largest amount in U.S. history.
- They have set in motion the largest tax increase in U.S. history.
- They have chosen, planned for, and all but guaranteed more of the same in the form of higher spending and bigger government – all to be chased by ever-higher taxes.
Read the full report here.