Deficit Reduction
As Ohio families struggle to live within their means, the federal government is on a spending spree, piling up record new deficits onto our massive debt. The current deficit levels are unsustainable and create uncertainty in the economy that deters the investment and risk taking that encourages economic growth.
Washington's fiscal irresponsibility passes the problem to future generations, mortgaging the future of Ohio's children and grandchildren. Serious steps are necessary to get our fiscal house in order.
We face difficult choices and we must work together to develop the right balance between our short-term interests and our long-term fiscal health. In my view this balance must result in a balanced federal budget. As tempting as it might be to sacrifice the long-term economic stability for short-term political gain, it is not the responsible choice. I understand that reducing deficits through pro-growth policies and keeping federal spending under control are the cornerstones of fiscal responsibility.
The following charts reveal the challenges America faces from runaway spending and debt. These charts – which are based on a “current-policy budget baseline” that assumes current tax and spending policies continue – emphasize the importance of reforming entitlements to rein in budget deficits and ensure they’re secure for today’s seniors and future generations.
Submit Your Ideas to Reduce the Deficit
Have an idea to reduce our nation's deficit? Please visit my "reduce the deficit" section and leave your thoughts.
-Rob
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National Debt Outlook
Runaway spending and entitlements are projected to push the national debt held by the public past 100 percent of the economy within a decade. The debt would continue rising to calamitous levels thereafter. A study by economists Kenneth Rogoff and Carmen Reinhart shows that when a nation's gross debt reaches 90 percent of the economy, the economic growth rate falls by one percentage point. One percentage point may not seem like much, but it means 1 million fewer jobs. -
The Long Term Picture Of Soaring Federal Spending
While revenues as a percentage of GDP remain constant, our federal spending continues to climb to unsustainable levels. -
Rising Spending - Not Falling Revenues - Drives the Long-Term Deficit
Washington is spending too much, not taxing too little. The non-partisan Congressional Budget Office (CBO) projects that rising long-term deficits will be driven exclusively by surging spending. Tax revenues should remain around their historical average of 18 percent of the economy. Federal spending - historically 20 percent of the economy - is projected to reach unprecedented levels. -
Rising Costs of Social Security, Medicare, Medicaid, PPACA
Social Security, Medicare, Medicaid, PPACA and interest on the national debt are expected to rise from 49 percent to 67 percent of all spending between 2008 and 2022. -
Long-term Social Security and Health Spending
The CBO projects that Social Security and health spending will eventually triple as a share of the economy. Medicare is the largest driver of these rising costs. To ensure these vital safety nets are around for seniors today and in the future, we must reform them for the long run. -
No Easy Alternatives
Some have suggested that ending foreign aid, cutting waste, bringing the troops home from Iraq and Afghanistan, or raising taxes on upper-income taxpayers can offset the need for fundamental entitlement reform. Regardless of the merits of such proposals, they would offset only a small fraction of soaring Social Security, Medicare, and Medicaid costs. -
By the White House's Own Metrics, the Stimulus Failed to Create Jobs
Using the White House's own projections, the stimulus should have lowered the unemployment rate below 6% by 2012. With over 8% unemployment, it's clear the stimulus has failed to create jobs.
