Washington – The President’s budget, with annual deficits averaging nearly $1 trillion over the next decade, was revealed to be far worse than initially advertised according to a report released today by the Congressional Budget Office [CBO]. Federal spending runs at record post-war levels, never falling below 23 percent of gross domestic product [GDP]. Cumulative deficits are $2.3 trillion higher over 10 years under the CBO estimates than the White House projected, and the debt increase is $1.8 trillion greater over the same period.
House Budget Committee Chairman Paul D. Ryan made the following statement about the report:
“The Congressional Budget Office’s report exposes the widening gulf between the President’s rhetoric and his budget’s reality. Simply put, the President’s budget spends too much, taxes too much, and borrows too much – and it continues to heap an unsustainable burden of debt on American families, today and in the future. The President’s budget never reaches ‘primary balance,’ meaning that it fails to clear even the low bar the Administration set for itself in justifying its claims of sustainability.
“With this irresponsible budget proposal, the President has shown a discouraging lack of leadership with respect to our fiscal challenges. His budget completely ignored the recommendations of his own Fiscal Commission, refusing to seriously advance any of their major proposals for reining in the runaway spending in our major entitlement programs.
“In the weeks ahead, the House Budget Committee will lead where the President has failed. In sharp contrast to the empty promises and diminished future offered by the President’s budget, we will chart a path to real security and a prosperous future. The American people demand – and deserve – honest leadership on our greatest fiscal and economic challenges.”
Some details of CBO’s report, which can be found online at http://cbo.gov/doc.cfm?index=12103:
$3.7 trillion in spending this year, 24.3 percent of GDP (highest since World War II)
$46.2 trillion in spending over the decade
$1.5 trillion tax increase on families, small businesses, and job creators
Federal taxes reach 19.3 percent of GDP in 2021
Deficits and Debt:
$1.2 trillion deficit in fiscal year 2012, a record fourth straight deficit exceeding the trillion-dollar mark
More than doubles the debt by 2016 compared with the President’s first year in office, and nearly triples the debt by 2021