FOR IMMEDIATE RELEASE
Thursday, November 1, 2018
Delaney: Country Facing a Fiscal Time Bomb, Up to All of Us to Get Fiscal House in Order
WASHINGTON – This week, the Treasury Department said that due to rising deficits, government borrowing this year will more than double. In total, the Treasury plans to borrow more than $1.3 trillion in 2018. Last year, President Trump signed a $1.5 trillion tax cut that was not offset by other revenue or spending changes. In September, the New York Times reported that interest payments on the debt are the federal government’s fastest growing expense and that, “within a decade, more than $900 billion in interest payments will be due annually, easily outpacing spending on myriad other programs.” At that level, taxpayers would spend more on interest on the debt than on the military or key domestic programs like Medicaid.
The federal government already spends more in interest on the debt than the budgets of the Department of Homeland Security, the Department of Veterans Affairs and the Department of Education combined.
“Two things in life are certain: God and math. The math here is clear, we’re borrowing way too much and eventually it’s going to get very, very expensive. If we keep this up, we won’t be able to adequately defend our country, invest at home and prepare for the future. With interest rates rising and deficits increasing, we are creating a fiscal time bomb. The President dealt the country a very bad hand and it will be up to Democrats to take the lead because Republicans have shown they won’t. That’s not going to be easy and we can’t pretend that it will be. The truth is, we can’t give everyone everything, we have to make hard choices and take concrete steps to get our fiscal situation under control,” said Congressman Delaney.
In his book, The Right Answer: How We Can Unify Our Divided Nation, Delaney lays out a plan for fiscal sustainability. He argues for raising revenues by raising the corporate tax rate from 21% to 25%, implementing a carbon tax, enacting comprehensive immigration reform, establishing new minimum taxes on high earners and a surtax on incomes of over $500,000 a year so that the most fortunate pay more, and closing loopholes like carried interest. Delaney also calls for allowing the government to negotiate drug prices and implementing a smart universal healthcare plan, substantially lowering healthcare costs. He shows how we can do this, and more, like investing in infrastructure, research, and doubling the Earned Income Tax Credit for hard-working families, in a responsible manner. The record in fiscal responsibility between John Delaney, the successful entrepreneur and CEO who always paid all of his bills, and Trump who left behind financial carnage in his business career, is clear.