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Tipton Votes to Balance the Budget, Create Jobs
House budget balances by 2023, creating economic growth, protecting and strengthening Medicare, Social Security
WASHINGTON – Today, Rep. Scott Tipton (CO-03) voted to pass the House budget which would balance in 10 years without raising taxes on the American people. The budget places the nation on a sustainable fiscal course, ensuring that vital safety nets including Medicare and Social Security are protected for current seniors and strengthened for future generations.
According to a recent analysis of the House budget conducted by a former director of the non-partisan Congressional Budget Office, the budget will add 5 million new jobs to the economy from 2019-2023, as the debt shrinks below 90 percent of the GDP. After doing an extensive historical analysis of 44 countries over the past two centuries the researchers found that, “when gross debt as a percent of GDP exceeds 90 percent, median growth is roughly 1 percent lower than countries with lower debt burdens.” Under the House passed budget, the national debt drops below 90 percent of GDP by 2019, with the effect of adding as many as 5 million new jobs by 2023.[i] Additionally, household incomes stand to increase by $1500 next year based on GDP growth projections resulting from the House budget.
Prior to the House vote, Tipton spoke on the House floor in support of a balanced budget.
Transcript of Tipton’s speech:
A ‘balanced approach’ should not be ‘hard working American’s give — and government takes.’ This year the Federal Government will collect a record $2.7 trillion, and yet federal spending will far surpass this.
Continuing to increase revenue while federal spending grows with no end in sight is not a balanced approach. The balanced approach we should pursue is a budget that balances—a budget that protects the present and builds for the future. We are presenting a budget that moves to that end and actually balances by slowing the rate of spending increases. This is a concept the Washington elite will label as extreme. Yet, this concept is one that American families call commonsense, and do every week.
American families have watched government grow and their budgets shrink. That’s not right.
Why, is a balanced budget important for the American people? The answer is found in the examples we now see in Western Europe. Governments that overspend and, as a result, under perform—hurt the people that they are designed to help the most.
Our budget will prevent this type of financial crisis from happening in our country. It will keep promises to our families and seniors, and protect the future of the American dream.
(Budget chart Rep. Tipton is shown with on House floor. Courtesy of the House Budget Committee)
Following the House passage of the budget, Tipton emphasized that:
“Balancing the budget is not an end, but a means to restore prosperity to this nation, get people back to work, and pass our children the American dream instead of a maxed out credit card. Our budget is not the end of the discussion, but a starting point for conversation on the direction of our nation’s future. We have an opportunity for both sides of the aisle to put people before politics—to work together to get spending under control, get Americans back to work by creating as many as 5 million new jobs, and ensure that programs Americans rely on like Social Security and Medicare are strong for this generation as well as for our children and grandchildren. To accomplish this, we must aim for balance.”
Highlights of the House budget:
- On the current fiscal path, the Congressional Budget Office (CBO) projects that Medicare will be bankrupt by 2024. The House Budget prevents this and puts Medicare on a sustainable course by providing options so that future seniors have the flexibility to choose the plan that best meets their needs—including maintaining the traditional Medicare option. The House budget does not change Medicare in any way for current seniors or those nearing retirement. While many opponents of the House budget seek to politicize this, calling it a ‘voucher’—it is not. The House budget provides premium support for seniors, meaning that those who are on fixed incomes and in need receive greater assistance to meet their healthcare needs and are able to choose the plan that works best for them—including the traditional Medicare option. All seniors receive the support they need.
- The House budget will grow the GDP by one percentage point in 2014 and three by 2023, resulting in an increase in household incomes by $1500 in 2014 and $4000 by 2023, according to a Hoover Institute study conducted by two Stanford professors.[ii]
- The House budget initiates tax reform, simplifying the overly complex tax code, closing loopholes and ensuring that all Americans pay their fair share. This will allow American families to keep more of their paychecks, and small businesses to invest more in job creation.
- The House budget replaces the President’s healthcare law with reforms that ensure all Americans have access to quality care, with the freedom to make decisions with their doctors on the care that is best for them. Currently, the President’s healthcare law is going to cause $20 million Americans to lose their employer-based insurance coverage (CBO). It raids $716 billion from Medicare, and caries a cost of $1.8 trillion to American taxpayers. (House Budget Committee)
- The House budget provides long-term economic certainty by slowing the rate of federal spending so that it does not exceed revenue, achieving balance in the next decade and over time paying down the $16.5 trillion national debt. This provides long-term economic certainty, encouraging investment and job creation, and according to economic analysis will create 5 million new jobs by 2023.
The differences between the House and Senate budgets over the next decade (FY2013-2023):
- The House budget decreases spending by 4.6 trillion dollars, while the budget being considered in the Senate increases spending by $645 billion.
- The House budget balances and yields a surplus in 2023 by slowing the rate of spending increases by 1.6%, while the Senate budget never achieves balance.
- The House budget does not raise taxes on the American people, while the Senate budget includes as much as $1.5 trillion in tax increases that will hurt American families and further hamper job growth.
[i] The Economic Benefits of Balancing the Federal Budget, American Action Forum, by Douglas Holz-Eakin, 3-13-2013