On the recordJanuary 1, 2013
I think what gets lost in the 30-second sound bites on the fiscal cliff is the real cliff facing this country in the form of a massive wave of entitlement obligations. Government accounting doesn't tell the whole story. The actual liabilities of the Federal Government, the present value of Medicare, Medicaid, and Social Security programs already exceed $86 trillion. By 2040, our entitlement obligations will consume all of the average postwar projected tax revenue. We have to come to grips with that. That means every dollar collected by the IRS would go to pay Social Security, Medicare, or Medicaid, without reforms. We will have to go out and borrow to pay for other spending should that happen. It is unfortunate that the President wasn't willing to engage on this front, and it is unfortunate that the Senate leader continues to deny the crisis. On the day of new year's resolutions, let's hope Senator Reid and President Obama resolve to be honest about the crisis our Nation faces with the coming wave of entitlement obligations, making these programs solvent, and reining in these trillion dollar deficits, which every economist will tell you is unsustainable. This must be done in 2013. Without the legislation before us today, without this bill, millions of Americans would see their tax rates go up, and that would provide a systemic shock to our already weak economy.…
