Legislative Update by Congressman Mike Ross

Addressing Our Mounting Budget Deficit
 
January 30, 2004
 
This week, the Congressional Budget Office released a startling forecast - the federal budget deficit is projected to reach $477 billion over the next year. The non-partisan CBO also found that the budget deficit over the next 10 years is expected to reach $2.4 trillion - an alarming figure considering that just three years ago our budget was running on a $5.6 trillion projected surplus.    

When the government continues to spend money it doesn't have - as it has done for the past three years - all sorts of problems occur. The United States becomes more reliant on loans from foreign countries, such as China and Japan, to fund our spending habits. According to a recent article in the Washington Post, many economists fear that "foreigners will soon tire of financing America's appetites, and as a result, inflation, bankruptcies, and economic malaise will follow." 

For our government to continue on a downward spiral of spending money we don't have is not only an exercise of poor fiscal policy, but is flat-out irresponsible. There is no magic secret: if a pressing issue requires us to increase our spending  - such as the added expense of Homeland Security  - our government must use good fiscal judgment, and make cuts to other areas.  

When President Bush unveils his budget Monday, I can only hope his proposed plan will sufficiently address our country's escalating debt and budget deficits. However, the President is expected to propose making his tax cuts permanent, a scenario the CBO projects will cause the national debt to exceed $9 trillion in five years, $10 trillion by 2009, and a whopping $12 trillion by 2013. 

As it currently stands, the amount of each U.S. citizen's share of the national debt is $23,920-that's for every man, woman and child.  Additionally, the first $2,559 every one of us pays in taxes each year simply goes to pay down interest on the national debt-a debt that will grow by nearly a half trillion this year. It is what I call the "debt tax."   

As a member of the fiscally conservative Blue Dog Coalition in the U.S. Congress and as a small business owner, I believe our nation must get its fiscal house back in order and restore fiscal discipline.  The greater this country goes in debt, the less opportunities we will have to cut taxes for working families and fund programs important to our children and seniors.  Our families are required to live within their means and our government should also learn to live within its means. 


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