Tag Archives: United States House Committee on the Budget

Bob Adelman ~ CBO Director: U.S. Is Headed For The Cliff

The New American | June 7 2012

Doug Elmendorf

Congressional Budget Office Director Doug Elmendorf testified on Wednesday before the House Budget Committee about the federal government’s “Long Term Budget Outlook.” His office just released its latest study which showed two scenarios: one bad, the other worse.

Said Elmendorf:

It is not possible to keep taxes at their [present level] and keep the laws unchanged for Social Security, Medicare and Medicaid…

It is possible to keep taxes at their [present level] but only by making substantial cuts…in [those] large entitlement programs…

Alternatively, it is possible to keep…[those] large entitlement programs unchanged but only by raising taxes substantially on a broad group of Americans…

Even if spending on…other programs [outside the entitlement programs] fell to a smaller share of GDP than we’ve seen at any point since World War II, debt would still be on an unsustainable upward trajectory…

That’s what is facing Congress as 34 Senators and 435 members of the House are deep into their reelection campaigns. And all that Congress is likely to do is use Elmendorf’s comments and his office’s analysis as fodder for their constituents to help them keep their jobs.

A spokesman for likely Republican presidential nominee Mitt Romney said, “Today’s CBO report confirms that President Obama has placed us on a path to fiscal ruin.” President Obama said that it’s President Bush’s fault, since he signed into law those “Bush tax cuts” that resulted in the $15.7-trillion deficit.

House Budget Committee Chairman Paul Ryan echoed Romney: “Today’s CBO report on the deteriorating fiscal situation underscores the obvious: the president’s policies are not working.” He added:

Repeating Europe’s mistakes, the president’s policies call for job-crushing tax increases and harsh disruptions for beneficiaries of government programs as the debt spirals out of control…

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