House Budget Committee approves bill for fiscal commission creation
The House Budget Committee Passes Bipartisan Bill to Address Federal Debt Crisis
The House Budget Committee made a significant move on Thursday by passing H.R. 5779, also known as the Fiscal Commission Act of 2023. This bill aims to establish a bipartisan fiscal commission that will prevent the federal government from facing financial ruin. It is worth noting that this is the first time in over a decade that the House Budget Committee has passed bipartisan legislation outside of budget resolutions.
According to House Budget Committee Chairman Jodey Arrington, R-Texas, the urgency to address the nation’s debt crisis cannot be ignored. By the end of 2023, the federal debt held by the public reached a staggering 98% of the country’s gross domestic product. The Congressional Budget Office predicts that this debt will continue to rise, reaching 107% of GDP by 2029 and a staggering 181% by 2053.
“No leader worth their salt can see those stunning numbers and not be shaken to their core and cannot be stirred in their spirit to do everything they can to make sure that we don’t bankrupt the greatest country in the history of humanity,”
said Arrington during a news conference.
The current U.S. debt stands at a staggering $34 trillion, and the Fiscal Commission Act aims to establish a commission that will improve the government’s financial situation and put the nation on a sustainable fiscal path. The commission will be tasked with proposing recommendations to balance the budget within 10 years of its creation, with the goal of stabilizing the debt-to-GDP ratio at or below 100%.
U.S. Rep. Jimmy Panetta, D-Calif., acknowledged that as a Democrat, it would have been easy for him to vote against the fiscal commission. However, he was inspired by the bipartisan leadership displayed by both Republicans and Democrats. Panetta emphasized the potential economic crisis that could arise if the debt and deficit are left unaddressed.
“Look, I think we can realize is that if we don’t do anything, what we’re going to see as a debt and deficit be corrosive on our economy, and that can lead to an economic crisis,”
said Panetta.
Former U.S. Comptroller General David Walker, a member of the Main Street Economics Advisory Board, stressed the importance of continued collaboration between Democrats and Republicans. He believes that having support from both sides of the aisle will significantly contribute to the success of the fiscal commission.
“A fiscal commission will create the necessary procedures that would allow our leaders to take a holistic view of the federal budget and then identify potential spending and revenue reforms,”
said Walker.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, expressed her support for the bill, emphasizing the need to address the country’s dire fiscal situation. She highlighted the alarming increase in the national debt over the past two decades and the potential consequences if immediate action is not taken.
“We’re headed towards uncharted territory if we don’t do something soon. Interest on the debt is already the fastest-growing part of the budget and more than we spend on children or Medicaid,”
said MacGuineas.
The cost of maintaining the country’s debt is already significant, with interest costs reaching a record high of $879 billion in fiscal 2023. These costs accounted for 14% of total federal spending as of September 2023. The Congressional Budget Office projects that interest costs will surpass all mandatory spending, discretionary outlays, and even spending on Social Security in the coming years.
Michael Peterson, CEO of the Peter G. Peterson Foundation, commended the House Budget Committee’s decision, considering it a step forward in addressing the nation’s growing debt crisis. Peterson hopes that this bipartisan effort will gain momentum and lead to the implementation of a comprehensive solution.
The last major fiscal commission, the U.S. National Commission on Fiscal Responsibility and Reform, faced challenges in implementing its recommendations. However, the passage of the Fiscal Commission Act brings renewed hope for a long-term, forward-thinking approach to ensure the country’s fiscal sustainability.
How does the passing of H.R. 5779 demonstrate bipartisan leadership and a shared understanding of the importance of addressing the nation’s debt crisis
Is crucial in addressing the federal debt crisis and ensuring the long-term financial stability of the country.
The establishment of a bipartisan fiscal commission is a significant step towards effectively tackling the federal debt crisis. By bringing together representatives from both parties, the commission can ensure that a wide range of perspectives and ideas are considered in developing solutions. This bipartisan approach signifies a commitment to putting the nation’s interests above partisan politics.
The fiscal commission will be responsible for proposing recommendations to balance the budget within a 10-year time frame. This commitment to fiscal responsibility demonstrates a determination to not only address the current debt levels but also to prevent future debt accumulation. By focusing on stabilizing the debt-to-GDP ratio at or below 100%, the commission aims to set the nation on a sustainable fiscal path.
The passing of H.R. 5779 is a testament to the bipartisan leadership displayed by both Republicans and Democrats. Despite their differences, they have recognized the urgent need to address the nation’s debt crisis and the potential economic repercussions if left unaddressed. This collaboration demonstrates a shared understanding that the nation’s economic stability is a priority that transcends political affiliations.
However, passing the bill is just the first step in addressing the federal debt crisis. The success of the commission will depend on its ability to work effectively and develop actionable recommendations. It will require open-mindedness, cooperation, and compromise from all members involved. Additionally, the implementation of these recommendations will require both parties to work together in a bipartisan manner.
The House Budget Committee’s passing of the Fiscal Commission Act of 2023 signifies a critical milestone in addressing the federal debt crisis. It shows that both Republicans and Democrats recognize the severity of the situation and are willing to put aside partisan differences to ensure the long-term financial stability of the nation. The establishment of a bipartisan fiscal commission is a testament to the importance of collaboration and compromise in addressing complex economic challenges. By working together, the federal government can take proactive steps towards preventing financial ruin and securing a prosperous future for the United States.
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