WASHINGTON – Today, the House Budget Committee hosted a hearing on “The Fiscal State of the Union,” to sound the alarm on the threat that our out-of-control national debt poses to our nation and our children’s future.
Concern for our Children's Future:
The Honorable David M. Walker - Seventh Comptroller General of the United States - expressed his concern for the quality of life for future generations of Americans with the looming debt crisis and unsustainable trajectory of our economy, "For the first time in the history of the United States, 78% - all time high, its never been over 50[%] - of voters believe that life for their children will not be as good as theirs. That is immoral."
Click below to watch his remarks.
The Damage of Raising Taxes to Reduce the Deficit:
When asked about a natural limit to the percentage of GDP the government can tax by Rep. Tom McClintock (CA), The Honorable Dr. John B. Taylor - Mary and Robert Raymond Professor of Economic at Stanford University - said, "the limit is the effect on the economy and you have a responsibility to make sure the economy doesn't tank - that's the limit."
When asked if America was close to that limit on the economy, he responded, "Yeah, very close."
Click below to watch the full exchange.
The Bad News about the Inflation Reduction Act:
In response to a question from Rep. Drew Ferguson (GA) about the effectiveness of the Inflation Reduction Act, Scott Hodge – President Emeritus and Senior Policy Advisor at the Tax Foundation – said, "The whole premise of the Inflation Reduction Act is bad policy. It's corporate welfare at its worst."
Click below to watch the full exchange.
You Can't Tax Your Way Out:
When Rep. Glenn Grothman (WI) asked the Honorable David M. Walker - Seventh Comptroller General of the United States - on his opinion of raising taxes he said, "There is a new four letter word in fiscal policy - it's called math. President Biden's proposed policy doesn't meet the test...The problem is primarily a spending problem, overwhelmingly, but not exclusively. We've waited too long to solve this problem... You can't tax your way out, you have to create a mechanism that will allow tough choices to be made where everything is on the table to differing degrees."
Click below to watch the full exchange.
Impact of Federal Bureaucracy on Economic Growth:
In response to a question by Rep. Chip Roy (TX), Scott Hodge – President Emeritus and Senior Policy Advisor at the Tax Foundation – said, “We have a government that is draining the private sector of productive capital, and it’s dragging down the U.S. economy. And, until we reverse that, we’re not going to have the growth that we really deserve, and really need to get out of this debt crisis.”
Click below to watch the full exchange.
Harmful Impact of Biden’s Proposed Corporate Tax Rate Hike:
“On a whole, the Tax Cuts and Jobs Act [TCJA] was pro-growth…..especially the corporate tax reforms made the United States much more competitive…..Our model shows that the Biden budget by increasing the corporate would knock about .7% off the long term effects of GDP and would cause both a reduction in wages, but also jobs.”
When asked by Rep. Chuck Edwards (NC) what the real-world impact of an increase in the corporate tax rate would mean for hardworking Americans, Hodge continued, “raising the corporate tax rate lowered wages for workers, and the most harmed workers were marginal workers: women, low-skilled workers, and younger workers were most impacted by that. And I think we need to take that to heart as we look at ways to raise revenues to lower the deficit.”
Click below to watch the full exchange.
How to Cut Wasteful Spending:
When asked by Rep. Glenn Grothman (WI) on the degree of which spending must fall to begin to get the country back on track in the next 2 years, the Honorable David M. Walker - Seventh Comptroller General of the United States - said, "You need to cut 2024 spending [by] at least $200 billion... it isn't that tough. The two things that I say is number one, eliminate the emergency. All spending and subsidies associated with Covid emergency, its a huge amount of money. Secondly, eliminate all one-time spending items. You do just that and you get over $200 billion."
Click below to watch the full exchange.
President Biden's Budget Worsens the Problem:
In response to a question from Rep. Bob Good (VA) on if there was any reason to believe President Biden's $7 trillion budget proposal would bring down America's record-high inflation numbers. Scott Hodge – President Emeritus and Senior Policy Advisor at the Tax Foundation said, "Goodness, no."
When asked what the President's FY24 budget proposal might do to inflation, he responded, "Over the next 10 years, the President's budget is proposing to spend $82 trillion...Let us absorb - $82 trillion...Unfortunately, they are proposing to tax $65 trillion - both are over the baseline. These are breathtaking."
Click below to watch the full exchange.
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