Committee for a Responsible Federal Budget

Media Coverage

Dec 15, 2016|Bloomberg Markets

R.I.P. Bond Bull Market as Charts Say Last Gasps Have Been Taken

A ballooning of U.S. debt levels could add tailwinds to the increase in yields, she said. That’s a possibility given Trump’s plans, which the Committee for a Responsible Federal Budget says would result in $5.3 trillion of borrowing and push America’s debt burden to 105 percent of its gross domestic product, from 75 percent now.

Dec 14, 2016|Fox Business

Maya MacGuineas: Forget Dow 20K, Worry About Debt $20T

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said while the markets have been rallying on potential pro-growth Trump administration policies such as lower taxes and fewer regulations, she warns such changes would not have a lasting impact on the economy unless they are sustainable.

“While the Dow is approaching you know, [a] new [all-] time high, so is the debt. And if we hit $20 trillion for the total debt sometime in January, that’s going to be a huge reminder that Donald Trump is walking into office with a debt as a shared GDP, the highest that we [have] ever seen, except for [under] one other president [Truman],“  MacGuineas said during an interview on FOX Business Network Cavuto: Coast-to-Coast.

 

Dec 14, 2016|Voice of America

US Central Bank Boosts Interest Rates

A report from the Committee for a Responsible Federal Budget says higher interest rates will increase the cost of repaying the huge U.S. government debt. CRFB says interest on the debt is the fastest growing part of Washington's budget, and boosting interest rates by one percent could add $1.5 Trillion to the debt over a decade.

Dec 14, 2016|The Hill

Budget watchdogs warn of rate hike impacts on debt

The Committee for a Responsible Federal Budget (CRFB) issued a warning about the high cost of national debt interest ahead of a likely Federal Reserve rate hike Wednesday.

“Interest spending is slated to be the fastest growing part of the budget and will ultimately crowd out other important priorities,” the CRFB wrote. “Low interest rates have made the debt very manageable over the recent past, but as we’ve seen in recent weeks, interest rates have the ability to rise again quickly. It’s important to be prepared.”

Dec 14, 2016|NPR

How Fast Could GOP Congress Get Obamacare Repeal To Trump's Desk?

Could lawmakers introduce and pass a repeal measure in the 17 days between Jan. 3, when they convene, and Inauguration Day, Jan. 20? Not likely, say budget specialists. "No way. I just don't think it's possible," says G. William Hoagland, senior vice president at the Bipartisan Policy Center, a Washington-based think tank, and a 20-year Republican staff veteran of the Senate Budget Committee.

Others think it could be done, but probably won't be. "Mechanically they can get it done," says Ed Lorenzen, senior adviser to the nonpartisan Committee for a Responsible Federal Budget. "The bigger question is, can they decide what should be in the package?"

Dec 13, 2016|The Financial Times

Prepare to be surprised by the Fed in 2017

Fiscally conservative Republicans in the Congress could balk at the new president’s plans. Unfunded tax cuts and spending could push Federal debt up from 77 to 103 per cent of GDP by 2026, according to the Committee for a Responsible Federal Budget, leading to financial instability and a late decade recession.

Dec 13, 2016|CNBC

Maya MacGuineas on CNBC: Don't Count on 4% Growth

“Projections are that the economy is going to be growing at around 2 percent, obviously we would all want it to be higher than that. But we are constrained by the real demographic shifts that are happening in this country,” said Maya MacGuineas. “Just to get to three and a half percent growth would take productivity gains that are unprecedented.”

“We want to shoot for increasing growth by half a percentage point – probably more likely than a full percentage point. If there’s more on the upside, that’s great. But let’s not count on it. We have to be cautious in what we build into our estimates.”
 

Dec 13, 2016|The Fiscal Times

How the GOP Could Ram Trump’s Tax Cuts Through Congress Next Year

The Committee for a Responsible Federal Budget, a prominent anti-deficit organization, has complained that Trump’s overall policy agenda is far from “fiscally responsible.” And on the subject of tax cuts in particular, “our estimate shows his tax policies would cost about $4.5 trillion over a decade.”

Dec 12, 2016|Bloomberg

McConnell, Warning of ‘Dangerous’ Debt, Wants Tax Cut Offsets

The Committee for a Responsible Federal Budget, a nonpartisan think tank, has projected that Trump’s plans would increase the debt by $5.3 trillion over a decade, with deficits already over $600 billion a year and rising on autopilot.

Dec 12, 2016|The Daily Signal

Trump’s ‘Penny Plan’ Could Slash Federal Spending Over Decade

While campaigning in September, Trump told the New York Economic Club, “If we save just one penny of each federal dollar spent on nondefense, and non-entitlement programs, we can save almost $1 trillion over the next decade—again this is spending that does not touch defense, and that does not touch entitlements.” 

“Trump’s version of the penny plan is actually more targeted and thoughtful because it isolates this to spending that is already being capped,” Marc Goldwein, senior vice president of the Committee for a Responsible Federal Budget, told The Daily Signal. Goldwein said a one-fourth reduction in nondiscretionary spending over a decade will accumulate, even if the “penny” branding seems small.

“This will seem modest in the first years, but it will accumulate significantly,” he said. “I’m not advocating against a 25 percent reduction, but it will mean there are some nondefense discretionary programs that they’ve got to deal with.” Goldwein also said this won’t necessarily conflict with Trump’s ambitious plans for infrastructure, since most of that will be financed through highway funds.

Dec 12, 2016|FX Street

The Yield That Breaks the Trump Rally's Back

The Committee for a Responsible Federal Budget (an independent organization) estimates that Trump's tax plan will add 4.5 trillion dollars to the deficit over the next ten years. That could add an additional $450 billion to the annual red ink.

Dec 12, 2016|FX Street

The Yield That Breaks the Trump Rally's Back

The Committee for a Responsible Federal Budget (an independent organization) estimates that Trump's tax plan will add 4.5 trillion dollars to the deficit over the next ten years. That could add an additional $450 billion to the annual red ink.

Dec 11, 2016|Albuquerque Journal

Trio offers advice for Trump on federal deficit

Leon Panetta, a moderate Democrat who served as President Obama’s secretary of defense and President Bill Clinton’s White House budget director, joined former Rep. Tim Penny, D-Minn., and Mitch Daniels, a former Indiana governor and budget director under former President George W. Bush, to outline a ten-point plan for averting a looming national debt crisis. The trio presented their ideas at a luncheon hosted by the Committee for a Responsible Federal Budget, which offers non-partisan and no-nonsense analysis of the fiscal challenges our nation faces.

Dec 9, 2016|Bloomberg BNA

Hill Briefs: Hatch Thinks Big; Consumption Tax Bill Returns

Don’t bank on sustained economic growth of 4 percent, analysts at the Committee for a Responsible Federal Budget said. “With a much slower growing labor force, achieving sustained 3.5 percent annual growth would require increasing projected productivity growth by nearly 150 percent, from 1.1 percent to about 2.6 percent per year,” the analysts said. “This level of productivity growth has not been sustained over any decade in modern history.”

Dec 8, 2016|Fox Business Network

Maya MacGuineas on Fox Business Network

"You cannot grow your away our of $20 trillion in debt or anything close to it," said Maya MacGuineas. "For the whole campaign we had a free lunch discussion as though there are no hard choices to be made. That’s just not true. We have a lot of choices we face in our budget and we’re going to have to come to terms with them. Otherwise we’ll be creating a big government debt bubble -- that would hurt the markets and that would hurt the economy." 

Dec 8, 2016|The Patriot Post

The National Debt: How America's Festering Cancer Will Affect You

As troubling as this should be to any American, the future looks even worse according to Congressional Budget Office (CBO) projections, as presented by the Committee for a Responsible Federal Budget. CRFB is a nonpartisan, non-profit organization committed to educating the public on issues with significant fiscal policy impact.

To quote CRFB, “Under CBO’s current law baseline, annual deficits will return to trillion-dollar levels by 2024. Under a more pessimistic Alternative Fiscal Scenario in which policymakers fail to pay for new spending and extended tax cuts, trillion-dollar deficits return to 2021 and reach $1.5 trillion — a nominal-dollar record — by 2026.”

Dec 8, 2016|InvestmentNews

Time for a new Social Security Commission

“Now, 35 years after the Greenspan Commission was created, it is time for a new bipartisan commission focused on strengthening Social Security for current and future generations,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a non-partisan public policy organization, during a Capitol Hill briefing on Wednesday.

“A commission creates an environment for compromise where a deal can be struck and where both parties can work together,” Ms. MacGuineas said. “Troublesome political and technical issues can be worked out more easily under the umbrella of political cover that a commission would provide.”

Dec 8, 2016|CNBC

The yield that would break the Trump rally’s back

The Committee for a Responsible Federal Budget (an independent organization) estimates that Trump's tax plan will add $4.5 trillion to the deficit over the next 10 years. That could add an additional $450 billion to the annual red ink.

Dec 7, 2016|International Business Times

President Trump's Plans For The Military: How The New Commander-In-Chief Could Give Defense Companies A Boost

 The government deficit, according to analysis from the Committee for a Responsible Federal Budget, would grow by $450 billion by 2021 as a result of Trump's proposed rise in military spending and repeal of the Budget Act’s defense sequester.

Dec 7, 2016|The Fiscal Times

A New Plan to Save Social Security for Another 75 Years

“At the end of the day, if you don’t do entitlement reform, you’re not doing anything at all” to address the nation’s long term budget and economic problems, [ Rep. Tom] Cole said on Wednesday morning during a conference on Social Security on Capitol Hill sponsored by the Committee for a Responsible Federal Budget.

“I’m more interested in process than I am in the various proposals,” he said. “There’s a lot of different ways, particularly with Social Security. It’s a pretty easy problem to solve because it’s basically a math problem. We know how many people are turning 65, we know about what their life expectancy is, we know about what they paid in, you can predict the revenue flow pretty easily.”

Dec 7, 2016|McClatchy

The debt limit monster is coming back, in time for Trump’s first 100 days

Congress and Trump are going to have to figure out a way to pay those bills and somehow deal with a debt that’s about to top $20 trillion, or double what it was when President Barack Obama took office eight years ago...“That’s going to be a real mess,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, a Washington budget watchdog group.

Dec 6, 2016|Business Insider

Donald Trump’s new Treasury secretary could kick the can down the road

Trump has called for a massive $1 trillion infrastructure plan to build bridges, roads, and other infrastructure while planning to cut $9.5 trillion worth of taxes for both citizens and corporations. When all is said and done, Trump’s policies are expected to add $5.3 trillion to the national debt, according to analysis from the Committee for a Responsible Federal Budget.

Dec 6, 2016|The Associated Press

Trump tax plan may be a mixed bag for Maryland

Estimates from independent think tanks, such as the Tax Policy Center and the Committee for a Responsible Federal Budget, place the revenue loss from Trump’s entire tax platform — which includes major cuts to the estate, capital gains and corporate income taxes — between $5.8 trillion and $6.2 trillion over the next decade.

Dec 4, 2016|Associated Press

For now, Trump bears signs of a dealmaker, not a policymaker

Federal budgeting requires meticulous planning, noted Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a nonprofit that favors limiting government debt. "It cannot be done in an ad-hoc way," she said. "The very premise of a budget is to look at things comprehensively."

Dec 2, 2016|The Salt-Lake Tribune

Herbert sees GOP going on offense in the next four years

The nonpartisan Committee for a Responsible Federal Budget projected Trump's campaign proposals would add $5.3 trillion to the federal debt during the next decade.

Dec 2, 2016|National Defense Magazine

National Security in the Trump Era Is Focus of Reagan Defense Forum

Fiscal responsibility groups are sounding alarms about the prospect of massive infrastructure spending combined with tax-code changes that could drain $5 trillion from the Treasury. Committee for a Responsible Federal Budget chairmen Mitch Daniels, erstwhile Defense Secretary Leon Panetta, and former Rep. Tim Penny, I-Minn., in a statement, called such a move “myopic.”
 

Dec 2, 2016|The Fiscal Times

Deficit Hawks Take Trump on an Ominous Tour of the Fiscal Cliff

Trump is no stranger to debt and has used it to his advantage often throughout his high-flying career. “This guy has lived on debt, for god sake,” former CIA director Leon Panetta quipped on Thursday at a conference staged in Washington by the Committee for a Responsible Federal Budget, a premier anti-deficit research organization. “He doesn’t think it’s a bad thing.”

Dec 1, 2016|The Hill

Budget group tells Trump: Pay for your plans

The Committee for a Responsible Federal Budget (CRFB) on Thursday released an open letter to the incoming president urging him to take control of exploding spending levels — even if the stance runs counter to his lofty campaign promises. “Pay for your proposed initiatives and veto legislation that adds to the debt,” the group wrote in the sharply worded letter, which was unveiled at an event Thursday. “When you are in a hole, the first step toward getting out is to stop digging."

Dec 1, 2016|Financial Times

Republicans plan radical overhaul of corporate taxation

Tax legislation will emerge next year as a compromise between the Trump team and congressional Republicans, who are expected to dial back the deepest Trump cuts, which the Committee for a Responsible Federal Budget has said would add $5tn to the national debt over the next decade.

Dec 1, 2016|Indianapolis Star

Daniels: Trump must tackle federal debt

“It is an enormous impediment to long-term growth in this country,” said Daniels, who served as President George W. Bush’s first budget director. “The president-elect didn’t cause this problem, but I think he is that president for whom it will not wait another four years.”

Daniels made his remarks as one of the three co-chairs of the Committee for a Responsible Federal Budget, a nonpartisan budget watchdog group. In a written letter and a panel discussion Wednesday, the group offered recommendations to Trump, who campaigned on proposals that the group estimated would add $5.3 trillion to the debt over the next 10 years.

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