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Brooks Implores Washington to Wake Up to Impending Financial Disaster Projected by New CBO Report

January 28, 2019
Press Release

Washington, DC— Monday, Congressman Mo Brooks (AL-05) implored Washington politicians to avert the impending financial and economic disaster projected in the Congressional Budget Office’s (“CBO”) newly released 10-year budget projections.[1]

Congressman Brooks said, “The Congressional Budget Office’s latest 10-year budget projection paints a bleak picture of America’s financial future. According to CBO, the federal budget deficit will be $897 billion in FY 2019 ($118 billion worse than in FY 2018) and is set to embark on a string of $1 trillion+ deficits beginning in 2022. Because of persistently large deficits, the national debt is projected to ‘grow steadily, reaching 93 percent of GDP in 2029 (its highest level since just after World War II) and about 150 percent of GDP in 2049—far higher than it has ever been.’ By 2029, CBO predicts the budget deficit will be $1.4 trillion.[2]”

Brooks continued, “As the CBO report makes clear, a lack of tax revenue is not the problem, out of control Washington spending is the problem. Washington elected officials have for years spent money American does not have, has to borrow to get, and cannot afford to pay back. In Fiscal Year 2018, the federal government’s revenue was $3.329 trillion while Washington spent $4.108 trillion, leaving a deficit of $779 billion.[3] America spent 23% more than it brought in. If a business or household handled their finances as poorly as the federal government, that business or household would long ago have gone bankrupt. According to CBO, revenues are up and set to increase every year through 2029, yet deficits continue to explode. Spending, not a lack of revenue, drives America’s dangerously high deficits.”

Brooks continued, “Debt service costs are rapidly growing and hurting discretionary spending programs. The CBO projects America will spend more than $7 trillion over the next 10-years on debt service.[4] To put our projected debt service in perspective, it is roughly equal to what America spent on national defense last year. Debt service is projected to increase steadily through 2029, to $928 billion, according to today’s CBO report.[5]”

Brooks concluded, “America’s current fiscal path is ‘unsustainable’ according to United States Comptroller General Gene Dodaro [6] and the Congressional Budget Office.[7] In accounting language, the word ‘unsustainable’ means current finances cannot last and that an American financial disaster is the end result. Stated differently, America’s budget outlook is bleak, and, absent restoration of financial responsibility, America will inevitably experience a debilitating insolvency and bankruptcy that will be triggered the moment America’s creditors decide to stop loaning American even more money that we do not have, have to borrow to get, and cannot afford to pay back. Washington’s reckless spending is the greatest generational theft in American history. It is immoral to burden our children and grandchildren with a ticking time bomb that will inevitably result in an all-out financial meltdown.”

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[1] Congressional Budget Office, The Budget and Economic Outlook: 2019 to 2029, January 28, 2019. https://www.cbo.gov/system/files?file=2019-01/54918-Outlook.pdf

[2] Congressional Budget Office, The Budget and Economic Outlook: 2019 to 2029, January 28, 2019, At a Glance. https://www.cbo.gov/system/files?file=2019-01/54918-Outlook.pdf

[3] Congressional Budget Office, The Budget and Economic Outlook: 2019 to 2029, January 28, 2019, page 7, Table 1-1. https://www.cbo.gov/system/files?file=2019-01/54918-Outlook.pdf

[4] Id.

[5] Id.

[6] United States Government Accountability Office, The Nation’s Fiscal Health, January 2017. https://www.gao.gov/assets/690/682131.pdf

[7] Congressional Budget Office, The Budget and Economic Outlook: 2019 to 2029, January 28, 2019, page 20. https://www.cbo.gov/system/files?file=2019-01/54918-Outlook.pdf