Left-leaning group argues against balanced budget with no new taxes

A new report by the liberal-leaning Center for Budget and Policy Priorities (CBPP) argues that the GOP’s goal to balance the budget with no taxes is “flawed.”

Balancing the budget, which Republicans are expected to propose in their budget blueprints next week, would likely require $4.5 trillion in either program cuts or tax hikes, the CBPP said. 

“The combination of these two goals has large and serious effects, making it highly likely that the forthcoming Republican budgets will be built around policies that would increase poverty and inequality and adversely affect many low- and middle-income families,” the report said.

{mosads}Republicans have long pushed for a balanced budget, arguing that it would decrease both the debt and deficit. Doing that in 10 years or less, however, would require significant cuts or tax increases that would hurt healthcare coverage and weaken the economic recovery, the CBPP said.

Between 1946 and 1979, the organization noted that debt dropped from 106 percent of gross domestic product (GDP) to only 25 percent of GDP. For only eight of those 33 years, the budget balanced or saw a surplus. 

The CBPP criticized last year’s GOP budget proposed by then-House Budget Committee Chairman Paul Ryan (R-Wis.) for the spending cuts that targeted programs for low and moderate-income households.

“Cutting only spending entitlements while shielding tax entitlements would be highly regressive,” the group said of future GOP budget resolutions. 

Both House Budget Committee Chairman Tom Price (R-Ga.) and Senate Budget Committee Chairman Mike Enzi (R-Wyo.) will unveil their separate budget blueprints next week.

The Senate resolution is expected to balance in less than 10 years, and some Republicans have hinted that the House budget would balance in less than 10 years. 

Different time frames could cause problems for Republicans in reconciling both resolutions.