Congressional Budget Office Downgrades Growth Estimate
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Congressional Budget Office Downgrades Growth Estimate
Health Care Spending Important Factor as Debt Grows
(Washington, D.C.) – According to the nonpartisan experts of the Congressional Budget Office, the economy will grow more slowly, and the federal deficit will rise more substantially, than had previously been predicted. Just last month the White House projected that the U.S. economy would grow 2.6 percent in 2014; CBO estimates today that growth will be just 1.5 percent. At the same time, the federal budget deficit is expected to total $506 billion this year – an increase over the $492 billion expected under CBO's April estimate. The agency projects that the U.S. would add more than $7 trillion to the debt over the next 10 years. This massive increase in the debt will come despite steadily rising tax revenue – as federal spending continues to increase even more rapidly.
CBO identifies rising health care costs as a major factor in federal spending increases over the next decade. Annual net expenditures for Medicare, Medicaid, CHIP, and Obamacare subsidies will rise by more than 85 percent over that time.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"This latest report confirms what the American people already know: too many elected officials in Washington are ignoring the problems with our economy, and the related problems in the federal budget. Simply put, government spending is out of control and there is no plan to stop it. Even after a temporary reduction in annual federal borrowing, the deficit is set to start climbing again in the next few years. Unrestrained spending is the chief culprit – as taxes continue to rise to new records every year.
This has to stop. It will take presidential leadership, and a willingness to reach across the aisle and compromise. Until Washington embraces fiscal discipline, eases the tax and regulatory burden, unleashes our energy potential, and creates an environment that reignites business start ups, economic growth will continue to disappoint. And millions of struggling American workers will be left behind."
For interviews with a LIBRE representative, please contact: Brian Faughnan, 571-257-3309 or Steven Cruz, 202-578-6173
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