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Congressman Mo Brooks

Representing the 5th District of Alabama

Federal Experts: America's FY 2018 $779 Billion Deficit & Future Debt Burdens "Unsustainable"

October 16, 2018
Press Release

Washington, DC— Tuesday, Congressman Mo Brooks (AL-05) issued the following statement about the Treasury Department’s preliminary Fiscal Year 2018 deficit projection of $779 billion [1] and the Comptroller General’s statement that America’s financial path is “unsustainable.” [2]

Congressman Brooks said, “Yesterday’s Treasury Department report confirms that, when it comes to financial responsibility, Washington is a total and complete bipartisan failure. Thankfully, because of free-enterprise economic reforms, America’s economy is booming and federal revenues are up. Unfortunately, Washington spending has once again outstripped and left revenue growth in the dust.”

Brooks continued, “At $779 billion for FY 2018, America’s deficit is 17% worse than last year’s $666 billion deficit. [3] Worse yet, the Congressional Budget Office estimates that next year’s deficit will near the $1 trillion mark. Even worse yet, the CBO estimates all subsequent deficits will blow past $1 trillion per year. [4] America’s total debt has exploded to $21.5 trillion. [5] U.S. Comptroller General Gene Dodaro has once again evaluated America’s deficit and debt situation and warned Washington that our financial path is ‘unsustainable’ (accounting language for ‘an insolvency and bankruptcy is in America’s future if we do not change our financially irresponsible path’).”

Brooks continued, “American taxpayers shelled out about $325 billion in debt service costs in Fiscal Year 2018.[6] To put $325 billion into perspective, it is more than 15 times what America spends annually on NASA and more than 6 times what the federal government spends annually on transportation. Absent constructive change, the CBO warns Washington that debt service costs will exceed $800 billion per year within a decade. [7] $800 billion is more than what America currently spends on national defense.”

Brooks concluded, “This financial data points to one dangerous outcome: a debilitating national insolvency and bankruptcy that robs Americans of the prosperity and peace we have long enjoyed. I cannot overemphasize how the voting public throughout America must do a far better job of studying and understanding economic issues well enough to elect senators and congressmen who have both the intellect to understand the threat posed by America’s deficits and accumulated debt and the backbone to do what it takes to prevent the economic destruction of a nation it took our ancestors centuries to build.”

Click HERE for the U.S. Treasury Department’s final Fiscal Year 2018 report

In July 2018, Comptroller General of the United States, Gene L. Dodaro, issued a report to Congress highlighting America’s perilous financial situation. The report entitled The Nation’s Fiscal Health says, “… absent policy changes, the federal government’s fiscal path is unsustainable and that the debt-to-GDP ratio would surpass its historical high of 106 percent within 14 to 22 years.”

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[1] https://www.fiscal.treasury.gov/fsreports/rpt/mthTreasStmt/mts0918.pdf

[2] https://www.gao.gov/assets/700/692666.pdf

[3] https://www.fiscal.treasury.gov/fsreports/rpt/mthTreasStmt/mts0917.pdf

[4] https://www.cbo.gov/system/files?file=115th-congress-2017-2018/reports/53651-outlook.pdf

[5] https://treasurydirect.gov/NP/debt/current

[6] http://www.crfb.org/blogs/treasury-2018-deficit-was-779-billion

[7] pg. 44, https://www.cbo.gov/system/files?file=115th-congress-2017-2018/reports/53651-outlook.pdf