House Proposes Budget; Senate Refuses to Act
Congress Must Work Together on Behalf of the American People
(Washington, D.C.) – The House is likely to vote in April on a budget proposal which was introduced today by House Budget Committee Chairman Paul Ryan. This fiscal plan adheres to the bipartisan spending limits agreed to in the last budget deal, which represents an increase in spending of $18 billion next year over what was agreed to in the 2011 deficit reduction agreement. The House budget plan will also balance in 10 years, reducing the deficit by $5.1 trillion over that time. The Congressional Budget Office's (CBO) latest projections state that if no legislative action is taken to affect revenues or spending, the federal debt will rise to be 79% of the Gross Domestic Product (GDP) by 2024. Debt was just 35% of GDP as recently as 2007.
In contrast, the Senate has made it clear that it will not debate and approve a budget resolution this year, as required under federal law. This will mark the fourth time in the last five years that the Senate has chosen not to debate and approve an annual budget. During that time, the federal debt has grown by more than $6 trillion. With the Senate again refusing to pass an annual budget, it will also be impossible for the House and Senate to agree on a consensus fiscal plan under regular order for the years ahead – as is also required by law.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"Members of the Senate continue to demonstrate that they are more concerned with political considerations than tackling the grim fiscal reality that faces the nation. American households know that working out a budget is important. Leaders must reach across the aisle to chart a fiscal course for our government going forward. Adopting a plan that imposes reasonable spending limits will help to balance the budget and begin to arrest the explosive growth in our national debt.
The non-partisan Congressional Budget Office (CBO) makes clear that increasing debt tends to slow our economy and reduce economic opportunity. If we want to get the job market moving again, it's time for leadership. This is one case where the House is leading and the Senate is dodging responsibility."