Cbo

Cutting Waste, Reducing the Deficit, and Asking All to Pay Their Fair Share Cbo

Publisher Marketing: To construct an economy that is built to last and creates good jobs that pay well for generations to come, it will take making investments in education, innovation, and infrastructure so that our entrepreneurs, scientists, and workers have the tools they need to succeed. To pay for those investments and free our economy from the burden of historic de cits and growing debt, we need to change how Washington does business, and restore responsibility for what we spend and accountability for how we spend it. For too long, Washington has spent money without identifying a way to pay for it. Indeed, the cost of the 2001 and 2003 tax cuts as well as the Medicare prescription drug bene t passed in the last administration contributed signi cantly to turning the surpluses of the 1990s into the record de cits of the following decade. The nancial crisis and recession exacerbated our scal situation as revenue decreased and automatic Government outlays increased to counter the recession and cushion its impact. The result was that, upon taking of ce, the President faced an annual de cit of $1.3 trillion, or 9.2 percent of GDP, and a 10-year de cit of more than $8 trillion-and this gure grew even larger as the depth of the recession became clear. While the need to jump-start our economy through the Recovery Act and other measures added to the short-term de cit, these critical measures were temporary and did not have signi cant de cit effects beyond the recession. In addition, for far too long, many Government programs have been allowed to continue or to grow even when their objectives are no longer clear and they lack rigorous assessment of whether the programs are achieving the desired goals. The result has been the profusion of programs that are duplicative, ineffective, or outdated-at a signi cant cost to taxpayers.