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Huelskamp: CBO Report Shows Congress Must Act Now


Location: Dodge City, KS

House Budget Committee member Congressman Tim Huelskamp responded to the newest report from the Congressional Budget Office predicting dire consequences if Washington allows the U.S. to go off the fiscal cliff at the end of this year. According to the CBO report, unemployment will remain above 8 percent for the rest of 2012. CBO also reported that failing to address the looming expiration of the Bush-Obama tax cuts along with planned spending cuts would result in unemployment above 9 percent and economic contraction of 2.9 percent in the first two quarters of 2013. CBO has also confirmed that this fiscal year will be the fourth in a row with a deficit of more than $1 trillion.

"When President Obama, then-Speaker Pelosi, and Senate Majority Leader Reid passed their massive trillion-dollar-stimulus, they promised America that unemployment would never go above 8 percent," Congressman Huelskamp said. "After four years of trillion dollar deficits -- and unemployment that has never gone below 8 percent -- clearly these policies have failed. And now, as the U.S. inches closer toward the 2013 fiscal cliff, Washington has no choice but to show the leadership and vision our nation so desperately needs right now. We need to address the tax cuts in September, not days, hours, or minutes before they are set to expire. Let's remove the threat of a double-dip recession, and assure the economy now rather than keep it on the brink of danger. President Obama and Majority Leader Reid have a choice: get on board with the House of Representatives and prevent the massive tax increase that will destroy our economy, or force America into another deep recession. Not only could the Senate avoid the cliff and pass the House's legislation to prevent the tax increase temporarily, but another solution to consider is the legislation I introduced in January to make the tax cuts permanent."

"Furthermore, as CBO noted, Washington's most serious problem is its reckless spending. The House has a solution for that too: it's called a budget. Under Republican control, we've passed budgets two years in a row. Even President Obama has offered a budget (although his plans received not a single vote this year or last in the House or Senate). Four years of trillion-dollar deficits and more than 1,200 days of the Senate not passing a budget has send a sad, but clear message of fiscal irresponsibility. I challenge Senator Reid, and all those other Democrat Senators out busy campaigning for reelection -- like Senators Claire McCaskill, Debbie Stabenow, Bill Nelson, Jon Tester, or Sherrod Brown -- go back to Washington now and pass the House bill now."

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