Congressman David Rivera (FL-25) reacted to the Congressional Budget Office's 2011 Long-Term Budget Outlook. The outlook was released this morning and outlines the agency's projections for federal spending and revenues over the next decades based on current conditions.
"The report from the Congressional Budget Office signals one thing; when it comes to cutting federal spending--the sooner, the better," Congressman Rivera said.
"The federal government is facing a financial crisis that will have long-term, detrimental effects on our economy unless we take action. If we continue along our current glide path, the national debt will reach roughly 70 percent of GDP by the end of this year. As the CBO points out, a high and continuously growing national debt increases the probability of a sudden fiscal crisis that causes investors to lose confidence in the government's ability to manage its budget, making it more difficult for the government to borrow at affordable rates.
"American families and businesses are already seeing a lack of investor confidence in the American economy. When a business doesn't know if it will have to contend with new, costly regulations, or if they will be taxed more to pay for a new government program, they have no incentive to invest in a new project or a new employee.
"A Bloomberg poll released today showed that a majority of Americans believe job growth would be revived through cuts in government spending and taxes. I agree.
"House Republicans have proposed and passed the Path to Prosperity, a budget that would cut $6.2 trillion of federal spending over the next decade. Meanwhile, Senate Democrats have not passed a budget in more than 780 days.
"I pledged to the residents of Florida's 25th district that fiscal responsibility would be my top priority. The disastrous economic policies that have led us here have hurt our economy now and will leave future generations buried under mountains of debt. We have to make significant spending cuts now to strengthen our economy or we will be left to make more drastic cuts down the road when it may be too late."