Capitol Hill

Congress recently passed legislation to increase the statutory ceiling on the national debt by $1.9 trillion to $14.29 trillion, an amount roughly equal to the entire output of the U.S. economy during 2009. The increase only is expected to last about a year until Congress will have to again increase the treasury's borrowing authority.

According to the nonpartisan Congressional Budget Office (CBO), the federal budget is in its worst shape since the end of World War II. President Obama's budget proposal released in February states the total debt held by the public is projected to increase to $17.5 trillion (76 percent of the gross domestic product) in 2019 (it was 41 percent in 2008). Additionally, CBO projects the interest on the national debt will be close to $1 trillion in 2019.

Members of NRCA's Government Relations Committee already have begun factoring budgetary implications into NRCA's policy positions. How Congress addresses the U.S.' budget problems (or fails to do so) will profoundly affect the ability of entrepreneurs, including roofing contractors, to grow or maintain businesses.

A failed attempt

During the Senate's consideration of the bill to increase the debt ceiling, Sens. Kent Conrad (D-N.D.) and Judd Gregg (R-N.H.) proposed an amendment to establish a bipartisan commission that would make recommendations regarding how to address the U.S.' budget problems. Such a commission supposedly would have given Congress the political cover needed to enact tough measures to begin reigning in the national debt by cutting spending and/or raising taxes.

But the proposal failed to garner the 60 votes needed to pass in the Senate. Six Republicans who originally had supported the commission voted against it because of pressure from anti-tax groups that feared the commission would have emphasized tax increases over spending reductions. This sealed the amendment's defeat.

Regardless of the commission's merits, the amendment's failure is a sign that many elected leaders are not yet willing to seriously tackle hard budget decisions. Although Obama has indicated he will establish a similar commission by executive order, a lack of bipartisan support will undercut its effectiveness in forcing Congress to act.

Another opportunity

The next opportunity for Congress to start solving the U.S' fiscal problems will be the consideration of the 2011 Budget Resolution sometime this spring. To date, only one member of Congress has put forward a comprehensive proposal aimed at addressing long-term budget imbalances.

Rep. Paul Ryan (R-Wis.) recently released the "Roadmap to America's Future," which CBO says would achieve a balanced budget during the next decade.

The proposal simplifies and broadens the tax base to generate greater economic growth and higher tax revenues while also reforming Social Security and Medicare—the U.S.' most acute budgetary problems.

Obama has praised Ryan for his proposal, calling it a "serious proposal."

However, most other lawmakers' reaction to the proposal is an indication it is still politics as usual on Capitol Hill.

Shortly after Obama complimented Ryan for his proposal, Congressional Democrats and their allies launched an orchestrated campaign to distort and discredit it. They claimed the proposal would "privatize" Social Security, "voucherize" Medicare and give tax breaks to the rich.

Meanwhile, many of Ryan's fellow Republicans either are remaining silent or attempting to distance themselves from his proposal, fearing the Democrats' attacks could be politically damaging. In fact, House Republican leaders have taken pains to point out Ryan's proposal is not the official Republican budget plan.

Ryan courageously has put forward a proposal that, though highly controversial, takes bold steps to avoid the catastrophe that will result from inaction. Will other lawmakers and Obama join him in getting serious about the U.S.' budget problems? As Congress takes up the next budget resolution, NRCA will be working to ensure they do.

Duane L. Musser is NRCA's vice president of government relations.