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CBO Projects Growing Debt, Weaker Economic Growth
President Obama Has Not Tackled Real Economic Challenges
(Washington, D.C.) – The House Budget Committee is holding a hearing today regarding the updated Budget and Economic Outlook released by the Congressional Budget Office (CBO) yesterday. The CBO report indicates that the annual federal budget deficit will stabilize at a historically high level through 2017, before beginning to climb again starting in 2018. The federal debt will continue to climb to record levels year after year, and annual debt service will rise to nearly $1 trillion. Worryingly, the CBO has lowered its projections for both economic growth and employee compensation in the next few years.
With regard to the Affordable Care Act (ACA, or Obamacare), CBO reports the new system will cost taxpayers $2 trillion over the next 10 years, while leaving 31 million Americans uninsured. This estimate reflects lower projected enrollment in private insurance and higher use of the taxpayer-funded Medicaid program.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“With less than two years remaining in this presidential administration, this report gives us a preview of President Obama’s legacy: a failure to seriously address the nation’s long-term fiscal challenges. The debt continues to grow every year – and while the president may celebrate a lower deficit estimate this year, the fact is his annual deficits remain higher than any previous presidency. More than 30 million will remain uninsured – even after spending $2 trillion in taxpayer money. And despite the assertions in Washington that the economy is improving, American workers will have a tougher time in the future as wage growth and job creation will be weaker than expected.
If the White House is unwilling to face these challenges, Congress needs to take them even more seriously. It’s time to limit spending, grow the economy, and reform health care.”