CBO: Balanced Budget Approved by Senate Boosts Economic Growth by $500 Billion
WASHINGTON, DC – The United States Senate today approved a balanced budget resolution for fiscal year 2016, which will boost the nation’s economic growth by more than $500 billion over the next ten years, according to the non-partisan Congressional Budget Office (CBO). If the Senate adds recommended tax and regulatory reforms to these spending reductions, the economic benefits will be even bigger.
The measure approved by the Senate also balances the budget in ten years with no tax hikes, protects the nation’s most vulnerable citizens, strengthens America’s national defense, and improves economic growth and opportunity for hardworking families.
The Senate Budget Committee estimates the economic growth dividend from a balanced budget will mean that more jobs will be created nationwide each year, beginning in 2019. By 2025, the tenth year of the balanced budget, more than 1.3 million additional jobs will exist.
The CBO also estimated that per person economic output would be 1.5 percent higher by 2025 under the Senate Republican Budget. This increase in economic growth occurs solely because of spending changes made in the budget, which reduce the growth of federal debt, and that makes more lending available to private businesses and job creators. The country’s lower debt will also push down interest rates for all borrowers.
State-by-state breakdown of the economic impact from the Senate’s Balanced Budget
Senate Budget Committee member statements:
Chairman Mike Enzi (R-WY): “Senate approval of this balanced budget demonstrates that Congress is doing its part to deliver a healthy economy for everyone,” said Chairman Enzi. “The important steps we have taken this week will help deliver a government that’s more efficient, effective, and accountable, which is absolutely essential for strong economic growth and job creation. This budget will help every American who wants to find a good-paying job and a fulfilling career. I am incredibly proud of my colleagues who worked together this week to deliver real solutions, real results, and real progress to the American people.”
Senator Rob Portman (R-OH): “The American people have to balance their own budgets, and the federal government should do the same,” said Senator Rob Portman. “That commitment is at the heart of our budget. Not only does it achieve balance, but it does so while creating an environment in which more Americans have the chance to get ahead. Our budget will help to usher in an era of job creation, higher wages, and more opportunity, and I’m pleased to support final passage.”
Senator Pat Toomey (R-PA): "When traveling across Pennsylvania, I often hear from constituents that Washington needs to take serious and substantive steps to rein in our country's out-of-control spending," Sen. Toomey said. “It is time the government started living within its means. I am proud to support a budget that reaches balance within ten years, honors the bipartisan spending caps we signed into law in 2011, does not raise taxes, and makes it easier for Congress to pass legislation dismantling Obamacare. If we can take these steps, America will be a more fiscally sound and prosperous nation, which will undoubtedly benefit our state’s economy and the well-being of all Pennsylvanians.”
Senator Roger Wicker (R-MS): “Senate Republicans have provided a forward-thinking plan that balances the budget in 10 years without raising taxes,” Sen. Wicker said. “In addition to reining in out-of-control federal spending, this budget offers Americans real health care reform, job creation, and a more prosperous future.”
Senator David Perdue (R-GA): “Georgians know outrageous national debt is a threat to both our economic and global security. This budget is just the first step in fixing six years of policies that have failed middle-class families,” said Senator David Perdue. “Even though this budget isn’t perfect, it lays the critical groundwork of balancing the budget and eventually creating a surplus to start paying down our debt. It starts by confronting our nation's chronic overspending and safeguarding the future for our kids and grandkids. We have a lot more work to do to improve the overall budget process, and I call upon all of my Senate colleagues to approach our fiscal crisis with a renewed sense of urgency.”
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