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New Treasury Report Shows Need for Deficit Reduction

New Treasury Report Shows Need for Deficit Reduction

U.S. on Pace to Record Fifth-Highest Deficit Ever

(Washington, D.C.) – Yesterday the Treasury Department released the Monthly Treasury Statement of Receipts and Outlays of the United States Government for July, 2013. According to the report, the United States ran a deficit of $97.6 billion in the month of July – which puts the government on track to run a deficit of $759.3 billion in 2013. In each of the last four years, the deficit exceeded $1 trillion.

Despite these high deficits, Washington is looking to raise spending again. In a recent speech, President Obama took credit for a deficit that he said is falling "at the fastest rate in 60 years," without noting that the nation will add more than $600 billion to our $16.7 trillion debt in 2013. He also called for increased spending on green energy projects and infrastructure, along the lines of the failed "stimulus" bill he signed into law in 2009. Some in Washington are even calling for cancellation of the sequester, which was signed into law by President Obama in 2011, and is currently reducing spending by about 3%.

Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:

"After all we've been through in this economy, Washington still seems disconnected from reality. Some elected officials are saying that with the deficit falling, it's time to launch another era of big government spending. But this year's deficit is nothing to take credit for; it's the fifth-highest ever.

To reverse the sequester cuts and add more spending and more borrowing is a reckless approach that has led to a crushing burden of debt, a sluggish economy, unsustainable entitlement obligations, and a broken federal government. Republicans and Democrats must come together on a plan to reverse the course of history that is set to leave our children and grandchildren indebted for generations to come."

For interviews with a LIBRE representative, please contact: Judy Pino, 202-578-6424 or Brian Faughnan, 571-257-3309.