Deficit Panel Stresses Spending Cuts -- Panel's work is being watched closely amid Europe's debt crisis & recent deficit fear exhibited by Congress.
From The Wall Street Journal:
Democrats on a blue-ribbon deficit-reduction panel suggested spending cuts would likely have to outweigh tax increases if the nation is to seriously tackle its ballooning financial obligations.
The discussions came as congressional budget analysts projected that federal debt would rise to 62% of gross domestic product by the end of 2010, the highest level since the aftermath of World War II. That's up from 40% at the end of 2008.
Erskine Bowles, the Democratic co-chairman of the bipartisan White House Commission on Fiscal Responsibility and Reform, floated a long-term goal of reducing federal spending to about 21% of U.S. gross domestic product, slightly above the recent norm but significantly lower than current projections.
Mr. Bowles . . . emphasized the need to find significant savings in federal health spending and other entitlement programs. If not, he added, "it will just consume the budget."
Fellow panel member Rep. Paul Ryan (R., Wisc.), the top Republican on the House Budget Committee, termed the discussions "productive."
"The explosive growth of government spending is clearly the problem, and I was encouraged by the growing consensus around this obvious reality," Mr. Ryan said.
The outlook for agreement among the 18-member panel, however, remains uncertain. Mr. Bowles, while suggesting the weight of deficit reduction rest on spending cuts, also said long-term federal tax revenue should rise to about 21% of GDP, above the current 18% or so.
Republicans pledged to keep open minds, and stopped short of ruling out tax increases in a broad package, but would likely balk at such a big jump.
The panel's work is being watched closely amid the European Union debt crisis and recent deficit fear exhibited by Congress, which has put a break on new spending.
Polling shows federal spending is of increasing importance to voters. A June Wall Street Journal/NBC News poll found that 34% of Americans would be enthusiastic if a candidate for Congress supported cuts in federal spending—the most popular attribute on a list of more than a dozen options.
Much of Wednesday's meeting focused on the latest grim [the Congressional Budget Office] projections. CBO Director Doug Elmendorf warned lawmakers that the 2010 health-care overhaul made a "dent" in health-care spending, but that it "did not substantially diminish that challenge" of cost-cutting.
His agency's report drew fire from Democrats on the panel, because it raised new doubts about whether promised savings in the new health-care legislation will materialize. Congress has mandated cost-cutting in federal health-care spending in the past, only to waive the cuts as they go into effect.
Democrats on a blue-ribbon deficit-reduction panel suggested spending cuts would likely have to outweigh tax increases if the nation is to seriously tackle its ballooning financial obligations.
The discussions came as congressional budget analysts projected that federal debt would rise to 62% of gross domestic product by the end of 2010, the highest level since the aftermath of World War II. That's up from 40% at the end of 2008.
Erskine Bowles, the Democratic co-chairman of the bipartisan White House Commission on Fiscal Responsibility and Reform, floated a long-term goal of reducing federal spending to about 21% of U.S. gross domestic product, slightly above the recent norm but significantly lower than current projections.
Mr. Bowles . . . emphasized the need to find significant savings in federal health spending and other entitlement programs. If not, he added, "it will just consume the budget."
Fellow panel member Rep. Paul Ryan (R., Wisc.), the top Republican on the House Budget Committee, termed the discussions "productive."
"The explosive growth of government spending is clearly the problem, and I was encouraged by the growing consensus around this obvious reality," Mr. Ryan said.
The outlook for agreement among the 18-member panel, however, remains uncertain. Mr. Bowles, while suggesting the weight of deficit reduction rest on spending cuts, also said long-term federal tax revenue should rise to about 21% of GDP, above the current 18% or so.
Republicans pledged to keep open minds, and stopped short of ruling out tax increases in a broad package, but would likely balk at such a big jump.
The panel's work is being watched closely amid the European Union debt crisis and recent deficit fear exhibited by Congress, which has put a break on new spending.
Polling shows federal spending is of increasing importance to voters. A June Wall Street Journal/NBC News poll found that 34% of Americans would be enthusiastic if a candidate for Congress supported cuts in federal spending—the most popular attribute on a list of more than a dozen options.
Much of Wednesday's meeting focused on the latest grim [the Congressional Budget Office] projections. CBO Director Doug Elmendorf warned lawmakers that the 2010 health-care overhaul made a "dent" in health-care spending, but that it "did not substantially diminish that challenge" of cost-cutting.
His agency's report drew fire from Democrats on the panel, because it raised new doubts about whether promised savings in the new health-care legislation will materialize. Congress has mandated cost-cutting in federal health-care spending in the past, only to waive the cuts as they go into effect.
posted by Sid Cottingham | 2:26 AM
0 Comments:
Post a Comment
<< Home