Van Hollen Statement on CBO’s Economic Analysis of the Fiscal Cliff

Washington, DC – Today Maryland Congressman Chris Van Hollen, Ranking Member of the House Budget Committee, issued the following statement on the Congressional Budget Office’s (CBO) economic analysis of the effect of the “fiscal cliff” in January 2013:

“CBO’s report paints an extraordinarily clear and dire picture of what might happen to the economy and working families if Congress fails to act: a possible recession early next year and millions more put out of work. At the same time, CBO observes that simply extending all of our current tax and spending policies will produce unsustainable deficits and debt, which will also send the economy into decline. It is clear that we need to act and we must do so in a balanced way.  That is why Democrats support the extension of tax cuts only for the middle class, choosing to reduce the deficit in a way that includes spending cuts as well as cuts to tax breaks for special interests, and replacing the meat-ax approach of the Budget Control Act sequester with a balanced plan.

“Given this report, Speaker Boehner’s threat to prevent the United States from paying its bills unless Republicans are able to impose additional economy-slowing austerity measures is especially reckless and irresponsible. Such threats, with so much at stake, do not signal a willingness to work together – it only compounds the problem.  It’s time for the GOP to put the needs of all American families before millionaires and Big Oil companies, and meet us half way as we work to put our fiscal house in order, secure our economic recovery, and reduce the deficit.”