No new borrowing

November 29, 2022

Dear President Biden, Speaker Pelosi, Minority Leader McCarthy, Majority Leader Schumer, Minority Leader McConnell, and Members of Congress:

We are concerned that Congress may soon consider a year-end package that increases appropriations combined with a variety of unpaid-for tax breaks and spending increases. With inflation at a 40-year high, interest rates rising, and the national debt approaching a record share of the economy, this is exactly the wrong thing to do for the well-being of our economy.

Thus, we are asking that lawmakers take one step towards fiscal responsibility by agreeing there should be no new borrowing for the remainder of 2022.

The political discussion will be filled with claims that this tax cut and that spending program are so important that they shouldn’t be paid for. But there is no economic justification to borrow rather than pay for new priorities in this economic environment. If policymakers approve new borrowing, they are choosing to make inflationary conditions worse rather than fighting to bring them under control.

We respectfully ask that you resist engaging in new borrowing for the rest of 2022.

Sincerely,

Robert Bixby
Concord Coalition
Maya MacGuineas
Committee for a Responsible Federal Budget
Ben Ritz
Progressive Policy Institute
Nan Swift
R Street Institute

2 comments

  1. Where were these very same folks when it came to the Inflation Reduction Act?

    They actually embraced more spending over the next five years where the revenue would come later, in the subsequent five years, if at all.

    According to the final estimate of the CBO, the net reduction in debt over the 10 year budget window for the Inflation Reduction Act will only be $58 Billion.

    However, the Inflation Reduction Act ADDS ~$66B in increased debt in the first four years (more spending than revenue), and the added taxes/ revenues magically appear in the last five years totaling $112B (more revenues than spending).

    Anyone want to bet whether those out-year revenues will actually be realized.

    Get serious.

    Like

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