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WASHINGTON, DC – House Democratic Whip Steny H. Hoyer (MD) released the following statement today regarding the White House’s announcement that the government will post the third highest deficit in the nation’s history and continues to face massive deficits as far as the eye can see:
“The Administration is predictably spinning the new deficit numbers as positive news instead of leveling with the American people.
“The fact is we are not on the road to recovery, we are on a crash course with fiscal disaster. This year’s deficit will still be the third highest ever, and only the current Republican Party would celebrate such a poor record.
“The White House masks the true size of the deficit by using the Social Security surplus ($173 billion in 2005). Republicans promised to save every nickel of Social Security for Social Security; instead they have spent every nickel. House Republicans have proposed another shell game that would use the Social Security surplus to privatize the program rather than pay for the guaranteed benefits already promised to retirees. If this Republican scheme was enacted it would increase the deficit by $1.1 trillion over the next ten years.
“It should also anger every American that interest on the debt is the fastest growing area of spending, that more taxpayer money will go towards interest over the next ten years than providing health care through the Medicaid program, and even more so that Republicans have no plan to reign in deficits.
“Instead Republicans plan to pursue the same reckless tax and spending policies that are largely responsible for these deficits, ensuring that they continue for generations to come.
“Democrats have a plan. Our 2006 budget would have reached balance in 2012 by returning to the fiscally responsible policies we enacted in the 1990s, which created record surpluses and helped spur rapid economic growth.”