Statement on Budget Resolution Allowing $1.5 Trillion in Higher Deficits

NEW YORK — Michael A. Peterson, President and CEO of the Peter G. Peterson Foundation, commented today on House adoption of the Senate Budget Resolution, which allows tax legislation to add $1.5 trillion in deficits over the next ten years:

“Unfortunately, this budget paves the way for $1.5 trillion in higher deficits, plus interest. With our national debt already at $20 trillion and growing, lawmakers should work to improve our fiscal outlook, not actively make it worse.

“Well-designed tax reform is important, and can support economic growth and put us on a better fiscal path at the same time. But this budget allows for $1.5 trillion of new borrowing to finance tax cuts, which is counter-productive because additional debt hurts our economy. Piling on more debt to our already unbalanced balance sheet hurts our economy by crowding out public and private investment, reducing our fiscal flexibility, and lowering confidence and certainty.

“Policymakers are missing a key opportunity to make comprehensive changes to our tax code that will both boost the economy and improve our fiscal condition. As the House and Senate move forward to spell out the details of tax legislation, they should fully pay for their priorities and commit to a fiscally responsible way forward for our nation.”