Deficit Reduction
As Ohio families struggle to live within their means, the federal government is on a spending spree, piling up 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 to near 100 percent of the economy within 15 years. The debt would continue rising to calamitous levels thereafter. In fact, the non-partisan Congressional Budget Office estimates that the debt will grow so large in the next three decades that it stops projecting the cost of interest on the national debt, it cannot foresee functioning markets at that point. This is the course the United States is currently on.
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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.
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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 spending remaining above its 20 percent of the economy historical average. Falling tax revenues are the not the problem; they will remain above their 17 percent of the economy historical average.
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Entitlement Costs are Crowding out other Parts of the Federal Budget
Social Security and Medicare costs are crowding out other parts of the federal budget, including domestic investments and defense. (Note that defense spending includes all war costs)
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Rising Costs of Social Security, Medicare, Medicaid, PPACA
Social Security, health entitlements and interest on the national debt are responsible for 100 percent of all new spending between 2008 and 2025.
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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.
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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.
