Club Issues Press Statement on Budget Forecasts
Pat Toomey, President of the Club for Growth, issued the following statement about projections in the White House Office of Management and Budget's Mid-Session Review that the federal budget deficit for FY05 would be $94 billion less than previously forecasted.
"These new numbers offer ninety-four billion examples of tax cuts at work, supporting economic growth and deficit reduction. Once again we are seeing the proof that supply-side economics works. It works because it is based on the simple truth that incentives matter. The 2003 pro-growth reductions, particularly in marginal income tax rates, capital gains and dividend taxes, have spurred robust economic growth and consequently, accelerating federal tax revenue.
"The only way to continue driving down the deficit is to make permanent the pro-growth tax relief responsible for our progress so far and to begin reducing federal spending. The President can send a strong signal to Congress that he's committed to this approach by vetoing the highway bill if it exceeds his spending limit of $284 billion.
"While these numbers are great news in the short-term, unless meaningful Social Security reform is passed our future deficit situation will quickly become catastrophic. Congress needs to pass Social Security reform with the ownership of personal retirement accounts now before we are faced with economy-busting debt and tax increases."
