June 19, 2012
The main drivers of future deficits and debt remain, as they have been for many years now, (a) Medicare, Medicaid, and to a lesser extent Social Security, all of which are within the jurisdiction of this committee, and (b) revenues, also within this committee’s purview. We are heartened by the resolve that the leadership of this committee has shown in setting out a path to address fundamental reform in both areas. We hope that our Task Force recommendations prove useful to the committee as it tackles these difficult questions. We believe strongly that without fundamental reform in the tax code and in future entitlement benefits, America cannot avoid continuing the steady increase of our federal debt toward 100 percent of GDP in the next decade and 200 percent of GDP a decade later. These are clearly unsustainable levels and normally associated with serious economic and financial difficulties for any nation that strays so far from fiscal responsibility.
Letters and Testimony, Economic Policy Project