Last week, Representative Chris Stewart (R-UT) reintroduced legislation requiring that the annual Presidential budget provide an estimate of the per taxpayer cost of the deficit and of the public debt. This proposal encourages more responsible government spending, increases fiscal transparency for taxpayers, and holds legislators accountable for how they spend taxpayer money.
“The federal debt is on an unsustainable trajectory,” said Rep. Stewart. “Democrats have taken a short-sighted approach to restarting our economy since taking the House majority, throwing money at initiatives that fit their political agenda. Spending needs to be measured, focused, and absolutely must account for the taxpayer – particularly as we continue to recover from Covid-19’s economic fallout.”
The Congressional Budget Office (CBO) estimates that, by the end of 2021, federal debt held by the public will equal 102 percent of GDP. The CBO also projects that debt would reach 107 percent of GDP, surpassing its historical high, in 2031 and would almost double by 2051. This year, the deficit is estimated to be the second largest since World War II.
“Rising debt increases the risk of a fiscal crisis and higher inflation, slows economic output, increases interest payments abroad, and more. Sadly, tax hikes and more government spending are right around the corner. Congress needs to hold itself accountable and establish responsible incentives before it’s too late.”