Katie Grant, 202-225-3130
WASHINGTON, DC - House Democratic Whip Steny H. Hoyer (MD) released the following statement on the Congressional Budget Office (CBO)'s Updated Budget and Economic Outlook, released today:
“CBO’s update of its Budget and Economic Outlook released this morning couldn’t paint a clearer picture of our fiscal challenges. If Congress fails to resolve the so-called ‘fiscal cliff’ by the end of this year, according to the CBO’s projections, the first half of 2013 will plunge us back into recession and sharply increase unemployment.
“As I have said many times, allowing the combination of policies set to hit in January – among them the budget sequester, tax increases on the middle class, reduced Medicare physician payments, and expired unemployment benefits – to take effect would be a disaster. The best way to prevent it is to replace this fiscal cliff with a balanced solution, one that operates within the framework of the bipartisan Bowles-Simpson and Rivlin-Domenici commissions. Both recommended combining revenue increases with sensible spending reductions to bring our deficits and debt under control over the long term while keeping our fragile economic recovery moving forward right now.
“I continue to call on House Republicans to set aside their partisan proposals to cut taxes for the wealthy while ignoring the looming sequester and middle class tax increases, and instead work with Democrats to achieve the big and balanced solution we need to prevent fiscal and economic disaster.”