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CBO Report: Federal Debt Will Overtake Economy in 2011

Rep. Rob Woodall says Medicare, Medicaid and Social Security are the primary components of the debt.

A new report by the Congressional Budget Office (CBO) points to a dire fiscal future.

“According to this CBO report, our federal debt will overtake the size of the entire U.S. economy this year.  Three programs—Medicare, Medicaid, and Social Security—are the primary drivers of this crushing burden of debt,” Rep. Rob Woodall (R-GA-07) said in a released statement.

“For years, politicians have chosen to ignore the fact that these are in dire need of reform.  We cannot put this problem off any longer,” he added.

Woodall reiterated his support for the Republican’s 2012 budget proposal, also known as “The Path to Prosperity.”

“This plan not only drives down wasteful government spending, but it also provides responsible reforms to our entitlements,” Woodall said.

Woodall vowed to continue working with congressional colleagues to “produce viable, fiscally responsible solutions that will put Americans back to work and restore this nation’s place as a leader in the global marketplace.”

On June 23, Woodall, as a member of the House Budget Committee, will hear testimony from Director of the CBO Douglas Elmendorf.

“I look forward to sharing my concerns about the fiscal future of this country with Mr. Elmendorf.  Tomorrow’s hearing should undoubtedly be a spirited discussion,” Woodall said.

Woodall’s 7th Congressional District includes all of Barrow and Walton counties, most of Gwinnett County, and portions of Forsyth and Newton counties.

Dave Emanuel June 24, 2011 at 04:30 PM
There's a lot of incorrect information circulating about the budget deficit and the national debt. Some people think the "Bush tax cuts" are responsible for the current record-breaking national debt. That is not correct. The "Bush" tax rates are less than 5% lower than the previous rates, have been in effect for 10 years and are relevant to taxpayers with annual incomes of $200,000 or more. In 2008 (the latest year for which IRS data is available) the total taxable income of all filers earning $200,000 or more was $2 trillion. Five percent of that amount is $100 billion, and over a 10-year period, that amounts to $1 trillion. So, if the Bush tax rates had never been implemented, the national debt would currently amount to $13.3 trillion instead of $14.3 trillion. Keep in mind that the $1 trillion figure is very generous. It's based on taxable income and does not take into account tax credits or other items that reduce the actual amount of tax paid. Another viewpoint is that expenses for the war in Iraq were accounted for "off budget" to show less of a deficit. Had they been handled "on budget" the national debt would be even higher. That's not correct. All government expenses, whether on- or off-budget go to the national debt's bottom line. Budget deficit is one thing, national debt is quite another. For reference, national debt has increased every year since 1957. But the biggest problem is that it has increased from $10 trillion to $14 trillion in the last two years.
Brian Crawford June 30, 2011 at 07:11 AM
It's important to note that 10 years ago, when George W enacted his first budget, the national debt (ND) was $5.8 trillion, most of which had accrued under Reagan and Bush 41. The Clinton administration left a balanced budget and the CBO projected a $5.6 trillion surplus over the next 10 years leaving us essentially debt free, assuming the continuation of the tax and spending policies at that time. This had been achieved through bi-partisan efforts by a Democratic President and a Republican Congress. By the time Bush 43's last budget ended on 09/30/2009, the ND had ballooned to $11.9 trillion. In 8 years Bush had borrowed over $6 trillion and doubled our ND. The consensus among economists is there were 3 factors driving this debt; the Bush Tax Cuts, the wars in Iraq and Afghanistan, and the Medicare D program. The Bush years are a true glimpse into GOP malfeasance. For years they've talked about "starving the beast" and gutting Social Security and Medicare. Now they've created a scenario where that actually seems possible. Who cuts taxes while prosecuting trillion dollar wars and giving billions away to companies that ship our jobs overseas? This was either the work of a complete bunch of slack jawed yokels, or something far more sinister; a well thought out plan to create economic chaos. Ending the Bush Tax Cuts and eliminating many of the current tax loopholes is the first step to recovery. http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm

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