Fiscal Responsibility
David Walker - Page 2
These are two scenarios for today. This is the Congressional Budget Office's baseline assumption and you can see they assume that we have large and growing deficits in the out years. This is another one. This one assumes that we keep taxes at historical levels of 18.5% of the economy, which would mean extending all the tax cuts and fixing AMT (Alternative Minimum Tax). You can see the fastest growing cost is interest on the debt. The single largest waste item in the budget is interest on the debt. You get nothing for it. It's the fastest growing item in the budget. It went up from 7% to 9% of the budget just last year. And by the way, the numbers you've seen don't count interest to the trust funds.
The status quo is not an option. We cannot grow our way out of this problem. We want to encourage economic growth because it can help and the course that you take matters. But we're going to have to change how we keep score, be more honest about where we are and where we're headed, we're going to have to re-impose meaningful budget controls, we're going to have to dramatically reform entitlement programs, we're going to have to constrain spending and reengineer it, and we're going to have to engage in comprehensive tax reform including the tax cap—broadening the base and flattening the rates in order to promote economic growth. The United States spends $2.5-$3 trillion per year. It issues tax preferences of $700-$800 billion per year and for the most part it has no idea of whether the programs work or not. The OECD (Organisation for Economic Co-operation and Development) says that on a range of energy, labor, education, environment, public finance, science and technology statistics, the United States ranks 16 out of 28. Being a CPA, that's called below average.
We can and we must do better. The sooner we get started the better because the sooner we start making tough choices the longer we have to transition and the sooner interest will work for us rather than against us. We need public discussion and debate because the people are ahead of the politicians on this. And ultimately we the people are responsible and accountable for what does and does not happen in our capitols around the country. This is not just about numbers. It's about values. I'll give you one. Stewardship. It's about people, our kids and grandkids. These are my three grand kids. I got married at 19 and I've been married to the same woman for 35 years. We have two children and three grandchildren. Their future is at risk because of what's going on now. And they can't vote. I am their voice.
Thank you.
Article:
Harry Zeeve: Page 1 -
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David Walker: Page 1 -
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Alison Acosta Fraser: Page 1 -
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Belle Sawhill: Page 1 -
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Chris Swann: Page 1 -
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Carl Tannenbaum: Page 1 -
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Recipes: Lemon Chicken | Rachel's Omelet | Corn Pudding | Marinated Filet Mignon | Asian Pork Tenderloin and Coconut Jasmine Rice | Grilled Chicken Breasts | Steak au Poivre | Pretzel Salad | End of Spring Beef Stew | Chicken Tarragon | Roasted Sweet Potatoes | No Bowl Cake | Chris and Aunt Mary's Stromboli | Aunt Pat's Pizza Meat | Cracchiola Family Sauce | Chris's Baked Ziti | Aunt Eleanor's Spedini | Post-Thanksgiving Gumbo | Singapore Rice Noodles | Red Chili and Orange Barbecue Sauce | Tandoori-style Grilled Chicken