“CBO’s new long-term budget outlook shows why it is so important that we reach agreement on a bipartisan and balanced long-term deficit reduction plan.  If we don’t stop the projected explosion in federal debt, we will jeopardize the future economic security of the nation. 

 “The Budget Control Act, which serves as the budget for 2012 and 2013, provided a significant contribution toward deficit reduction – including more than $2 trillion of largely discretionary spending savings over 10 years.  But CBO’s report shows that cutting discretionary spending alone is not the answer.  Rising health care and entitlement costs and inadequate revenues remain the primary drivers of the long-term fiscal imbalance.  

“As we look to avoid the ‘fiscal cliff’ later this year, we should replace the scheduled arbitrary, across-the-board sequester cuts with even more savings from a balanced and comprehensive plan, like the Bowles-Simpson framework, that includes savings from entitlements, including health care, and tax reform that raises revenue.  And that plan should be phased-in carefully to protect the economic recovery.   

 “Democrats and Republicans must come together to solve this problem.  There is too much at stake for us not to act.  Both sides will have to move off their fixed positions and find common ground.  Our country’s future economic strength depends on it.”

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Contact:
Stu Nagurka (202) 224-7436
Steve Posner (202) 224-7925