Years Of Reckless Spending Now Driving Country Off A Fiscal Cliff
PHOENIX – Last month the top Senate Democrat leaders overseeing Richard Carmona’s campaign for Senate made clear their willingness to allow the country to go over a"fiscal cliff” unless their demands for massive tax hikes were met.
But yesterday a new report from the non-partisan Congressional Budget Office (CBO) also made clear that as a result of the Democrats’ reckless tax-and-spend policies, we are already headed in that direction. The report shows that the economy would go into a recession and unemployment would increase if the Democrats’ proposed small business tax hike and massive defense cuts are put into effect.
"This report is just the latest evidence that the failed economic policies trumpeted by Richard Carmona and President Obama are driving our country over a fiscal cliff,” Arizona Republican Party spokesman Tim Sifert said today."Under the Obama economy, we’ve now had 43 straight months of unemployment above 8 percent, a skyrocketing debt hitting $16 trillion, and four straight years of trillion dollar deficits. This report is yet another big wake-up call that Arizona simply can’t afford Carmona and Obama’s failed economic policies,” Sifert concluded.
CBO Projects ‘Significant Recession,’ ‘Jobless Rate Rising’
NATIONAL JOURNAL:"CBO: Jumping Off Fiscal Cliff Would Cause Recession” (“CBO: Jumping Off Fiscal Cliff Would Cause Recession,” National Journal, 8/22/12)
NEW YORK TIMES:"...if Congress takes no action to stave off tax increases due and automatic budget cuts scheduled to take effect on Jan. 1, the economy could fall into a recession, with total output shrinking and the jobless rate rising to about 9 percent in the second half of 2013... Fears about tax increases and spending cuts — the ‘fiscal tightening’ — are depressing economic growth...” (“Report Sees Risk Of Recession If Budget Stalemate Persists,” The New York Times, 8/22/12)
WASHINGTON POST:"The nation would be plunged into a significant recession during the first half of next year if Congress fails to avert nearly $500 billion in tax hikes and spending cuts set to hit in January...” (“Significant Recession Imminent If Congress Doesn’t Act On Fiscal Cliff: CBO Report,” The Washington Post, 8/22/12)
REUTERS:"...even worse economic damage than previously thought if Washington fails to come up with a solution, Congress' budget referee said on Wednesday.” (“U.S. CBO Sees Deeper ‘Fiscal Cliff’ Recession Next Year,” Reuters, 8/22/12)
AP:"... fresh, dire projections by the nonpartisan Congressional Budget Office.” (“Analysts: Recession Likely Without Budget Accord,” AP, 8/22/12)
CBO:"...a recession, with real GDP declining by 0.5 percent between the fourth quarter of 2012 and the fourth quarter of 2013 and the unemployment rate rising to about 9 percent in the second half of calendar year 2013.” (“An Update To The Budget And Economic Outlook: Fiscal Years 2012 To 2022, Congressional Budget Office, 8/22/12)
Under Senate Democrats We Are Now Facing A Fourth Straight Year Of Trillion Dollar Deficits
The Congressional Budget Office (CBO) Is Predicting The Fourth Straight Deficit To Exceed $1 Trillion At $1.1 Trillion. "Congress' nonpartisan budget analysts are projecting a $1.1 trillion federal deficit for 2012, the fourth straight year the government's shortfall will exceed $1 trillion." ("Analysts Project $1.1T Federal Deficit This Year," The Associated Press, 8/22/12)
CBO: "The Federal Budget Deficit For Fiscal Year 2012 ... Will Total $1.1 Trillion ... Marking The Fourth Year In A Row With A Deficit Of More Than $1 Trillion." ("An Update To The Budget And Economic Outlook: Fiscal Years 2012 To 2022," Congressional Budget Office, 8/22/12)
CBO: "The Amount Of Federal Debt Held By The Public Has Skyrocketed In The Past Few Years, Rising From 40 Percent Of GDP At The End Of 2008 To An Estimated 73 Percent By The End Of This Year." ("An Update To The Budget And Economic Outlook: Fiscal Years 2012 To 2022,"Congressional Budget Office, 8/22/12)
According To The CBO, Federal Debt Held By The Public Will Reach The Highest Levels Since The 1950s. "Federal debt held by the public will reach 73 percent of GDP by the end of this fiscal year-the highest level since 1950 and about twice the 36 percent of GDP that it measured at the end of 2007, before the financial crisis and recent recession." ("An Update To The Budget And Economic Outlook: Fiscal Years 2012 To 2022," Congressional Budget Office, 8/22/12)
Senate Democrats’ Plan -- ‘Risk Racing Over The Fiscal Cliff’
"...Democratic Senator Patty Murray said her party is willing to risk racing over the fiscal cliff and into financial chaos in 2013.” (“US Lawmakers Head Home, Severe Challenges Loom,” AFP, 8/4/12)
"Democrats say they are prepared to go over the so-called fiscal cliff at the end of the year ...” (“Democrats Risk Fiscal Cliff By Targeting Top Earners’ Break,” Bloomberg News, 7/10/12)
"Democrats have made clear that they are ready to allow tax rates to rise and automatic cuts to kick in for both defense and domestic programs... Sen. Patty Murray, D-Wash., who outlined the Democratic strategy in a speech this month, put the GOP on notice that her party would rather plunge off the fiscal cliff than extend tax cuts for the wealthiest Americans. White House aides pointedly backed Murray's threat on Tuesday.” (“Democrats Waxing Tough On Fiscal Cliff,” National Journal, 7/25/12)
SEN. PATTY MURRAY (D-WA):"So if we can’t get a good deal... then I will absolutely continue this debate into 2013... our country is going to have to face the consequences...” (Sen. Murray, Remarks At The Brookings Institute, 7/16/12)
SEN. MARK BEGICH (D-AK):"There are more people today than before that say let this all just expire out.” (“Geithner Meets Murray Amid Fears Lawmakers Might Not Stop Fiscal Cliff,” The Hill, 8/2/12)
SEN. HARRY REID (D-NV): Q:"Do you agree with Senator Murray that if you do not get a balanced deal, you'll fight this into 2013?” SEN. HARRY REID (D-NV):"...Patty Murray knows what she's talking about.” (Sen. Reid, Press Briefing, 7/17/12)
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