WASHINGTON, DC – House Democratic Whip Steny H. Hoyer (MD) released the following statement today regarding Federal Reserve Chairman Greenspan’s testimony today before the House Budget Committee regarding the federal deficit:
"Chairman Greenspan's testimony made it startlingly clear that Congress must address the mounting Republican deficits immediately or the economy will suffer.
“Unfortunately, Budget Committee Chairman Nussle's statement also made it clear that Republicans are set to continue living in their fantasy world in which only spending and not reducing revenue impacts the deficit. Chairman Nussle stated that he intends to apply PAYGO rules to the spending side but did not mention revenues, while Chairman Greenspan agreed with Democrats that both needed to be included in PAYGO rules. The fact is that we have to make the same hard choices that we made in the 1990s before that decade's record economic boom - pay as you go on both sides of the ledger.
“If Congress doesn't begin making responsible tax and spending decisions, Republican policies could end up cutting Social Security benefits to the tune of 50 percent to pay for tax cuts. I hope that Republicans will work with Democrats this year to craft a realistic budget that takes a cue from the fiscally smart decisions made during the Clinton Administration."