House Republican Policy Committee Chairman Tom Price, M.D. (R-GA) issued the following statement following a hearing of the House Budget Committee where Congressional Budget Office (CBO) Director Douglas W. Elmendorf, Ph.D., testified about the CBO's "2012 Long-Term Budget Outlook". During his testimony, Dr. Elmendorf told Chairman Price that raising taxes on today's weak economy would have adverse effects on economic growth.
"Today, Director Elmendorf echoed the same sentiments others have shared -- including President Bill Clinton and former Obama Administration chief economist Larry Summers -- that raising taxes on families and small businesses would cripple our already struggling economy. Despite these warnings, President Obama continues to insist on higher taxes to chase his bloated spending policies," Chairman Price said. "House Republicans, on the other hand, have proposed and passed a budget that would restore fiscal sanity to the federal government, return our nation to financial solvency and encourage private sector job creation -- all without hiking tax rates on America's families and businesses. President Obama should demonstrate the leadership required of his office and call on his Democratic colleagues in the U.S. Senate to pass a responsible budget that reins in reckless spending and protects taxpayers. At the very least, the President should stop championing policies that threaten American job creators and entrepreneurs with excessive regulation and higher taxation."
On Tuesday, June 5, 2012, the Congressional Budget Office released its annual budget outlook, projecting that if no serious policy modifications were enacted to correct America's current fiscal path, the U.S. debt would exceed the size of its economy within 25 years. The CBO also estimates that by the end of this year, the U.S. debt will reach 70 percent of America's Gross Domestic Product (GDP).
In March 2012, the U.S. House of Representatives passed a Republican budget proposal, the "Path to Prosperity," that, if implemented, would take steps to significantly pay down the national debt. This legislation awaits action in the Democrat-controlled Senate, which has failed to pass a budget in 1,134 days.