Mr. Chair, I include in the Record the following letter to the Honorable Paul Ryan, Speaker of the House. Congress of the United States, Washington, DC, October 4, 2017. Hon. Paul Ryan, Speaker of the House, Washington, DC. Dear Mr.…
Mr. Chair, I include in the Record the following letter to the Honorable Paul Ryan, Speaker of the House.
Congress of the United States,
Washington, DC, October 4, 2017.
Hon. Paul Ryan,
Speaker of the House,
Washington, DC.
Dear Mr. Speaker: We write to request that, as the Congress
considers the Fiscal Year 2018 budget resolution and any
legislation written to comply with its reconciliation
instructions, we continue to follow the long-standing
practice of evaluating the fiscal effects of legislation
relative to the baseline developed by the Congressional
Budget Office (CBO). Using the CBO baseline will allow us to
provide the American people the most accurate forecast of how
proposed fiscal policies will affect our ballooning federal
deficit.
CBO's baseline conforms to the principles that Congress has
defined in law. For decades we have consistently used the CBO
baseline to accurately calculate the fiscal and
distributional impacts of tax reform policy. The CBO baseline
is the best mechanism to measure how we are affecting our
nation's balance sheets because it reflects the clearest
intent of Congress, accurately accounts for the costs of
extending specific program provisions scheduled to expire,
and keeps legislation in line with fiscal requirements set
forth in reconciliation instructions within the budget
resolution.
Our constituents are calling on us to enact sound fiscal
policy, and many have answered that call with promises to get
our financial house in order. Unfortunately, according to
recent news reports, some members of the House of
Representatives may break that promise by opting instead to
change the baseline we traditionally use to determine how new
tax policy proposals will affect the deficit. Instead, some
lawmakers are pushing you to use a ``current-policy''
baseline that would, among other things, obscure the true
cost of extending deficit-increasing tax cuts by ignoring
their expiration dates written into the tax code.
Changing the baseline could cause Congress to inaccurately
calculate the detrimental impact of tax cuts and therefore
allow lawmakers to disregard important rules such as those
that guide the use of reconciliation in order to limit long-
term deficit increases. As you know, the Byrd Rule prevents
reconciliation procedures from being used in the Senate to
pass legislation that increases the deficit beyond the budget
window. Adopting a current-policy baseline would effectively
hide the $400 billion cost of extending expiring tax cuts,
and pretend that they are revenue neutral in order to meet
the Senate's reconciliation requirements.
Such a change will have costly consequences. Every dollar
of lost revenue hidden by a misleading or inaccurate current-
policy baseline is a dollar added to our deficit that will in
turn make it harder to adequately fund important priorities,
such as national security, infrastructure, disaster relief,
health care and the safety net for our most vulnerable
citizens.
Resorting to gimmicks such as the ``current-policy
baseline'' and creating unrealistic assumptions about
economic growth rates obscures the full cost of tax cuts and
severely undermines our ability to put the federal budget on
a sustainable fiscal path. Whether these gimmicks serve a
procedural or rhetorical role, the end result is the same:
fiscally irresponsible policies, larger deficits, and erosion
of the American people's confidence in our fiscal
stewardship.
As you know, our annual deficits are projected to swell to
over $1 trillion by the end of the decade. Equally
troublesome, the national debt is on an unsustainable
trajectory. If we willfully choose to inaccurately account
for taxing and spending legislation, then we will place our
economic wellbeing in jeopardy and saddle future generations
with the burden of shouldering today's fiscal wrongs.
Instead, we must be open and honest with the American people.
The traditional CBO baseline best accomplishes that by
providing the most transparent and precise measure of the
impacts of our fiscal policies.
Accordingly, we urge you to resist calls to abandon the CBO
baseline in the budget resolution so that the American people
are fully apprised of how we are affecting the nation's
financial future.
Sincerely,
Hakeem Jeffries,
Co-Chair, House Democratic Policy and Communications
Committee.
Joseph Crowley,
Chairman, House Democratic Caucus.
Steny H. Hoyer,
House Democratic Whip.
John Yarmuth,
Ranking Member, House Committee on the Budget.