We just issued an analysis of the new proposal from Senators Bob Corker (R-TN) and Claire McCaskill (D-MO) to limit total federal spending to 20.6 percent of GDP, the average from 1970 to 2008. As our report explains, the proposal would force draconian cuts in Social Security, Medicare, and many other programs while making it harder for the nation to recover from recession:
BEYOND THE NUMBERS
As we noted earlier, the Center on Budget and Policy Priorities released a report today explaining why a statutory spending limit like the one Senators Corker and McCaskill have proposed would ultimately lead to draconian cuts in crucial programs like Social Security and Medicare and also could have highly damaging effects in future economic downturns.
Update: The numbers in the third bullet from the excerpted statement below have been updated to reflect corrections.
Today, we released this statement from Jim Horney on the Congressional Budget Office's new budget and economic estimates:
Last night, the Center’s Executive Director, Robert Greenstein, discussed the forthcoming debate over severe spending cuts proposed by the leadership of the U.S. House of Representatives with Chris Edwards of the Cato Institute on PBS’ NewsHour. Watch here:
With House Budget Committee Chair Ryan scheduled to deliver the Republican response to the President’s State of the Union address tomorrow, this is an appropriate time to take another look at the major budget plan Rep. Ryan announced last year. (We’ve issued analyses both of the plan as a whole and of its proposed changes to Social Security.)
George H.W. Bush had it right in 1980 when he labeled the claim that cutting taxes would reduce the budget deficit “voodoo economic policy.” That didn’t stop Senate Minority Leader Mitch McConnell (R-KY) from claiming last summer that the George W. Bush-era tax cuts caused no net revenue loss — a claim that even mainstream Republican economists have thoroughly debunked.
In this podcast, we’ll discuss the new budget rules in the U.S. House of Representatives. I’m Michelle Bazie and I’m joined by Jim Horney, the Center’s Director of Federal Fiscal Policy.
Our analysis of data that the Census Bureau released this week shows that the 2009 American Recovery and Reinvestment Act was one of the single most effective pieces of antipoverty legislation in decades. In 2009, the Recovery Act’s temporary expansion of the safety net kept 4.5 million people out of poverty.
Jim Horney appeared on PBS’ “The NewsHour” last night with Gwen Ifill and the Concord Coalition’s Diane Lim Rogers to discuss the new Congress and promises to cut spending.