Pelosi Statement on CBO Deficit Projections
Pelosi Statement on New CBO Deficit Projections
January 25, 2005
Washington, D.C. -- House Democratic Leader Nancy Pelosi released the following statement today on new deficit projections by the nonpartisan Congressional Budget Office, which projected a budget deficit of $368 billion in fiscal year 2005:
"Today's CBO projections confirm that President Bush and Congressional Republicans have completely abandoned fiscal responsibility. The last three Bush budgets have produced the three largest deficits in history, and now the CBO is projecting an enormous $368 billion deficit for 2005. That whopping figure does not even include the $80 billion President Bush will soon request for Iraq and Afghanistan or his $2 trillion proposal to undermine Social Security. And rather than addressing the problem, the President will deepen it by proposing a budget next month that seeks to add another $1.8 trillion in debt by extending huge tax cuts for the wealthiest Americans.
"The President set the bar low when he only committed to reducing the deficit by half by 2009, and Republicans are on a path of fiscal recklessness that fails to even meet that inadequate goal. Economists have warned that huge deficits are a drag on the economy that will eventually force interest rates up. If we do not act to restore accountability, then mortgages, car loans, credit card debt, and student loans will all cost more.
"Democrats believe we must return to accountability. We must bring back pay as you go rules that require the federal government to live within its means by offsetting both tax cuts and spending. Pay as you go produced record budget surpluses in the 1990s and could be successful again."