SALT LAKE CITY (KUTV) — Rep. Chris Stewart introduced the Debt Control Through Budget Reconciliation Act of 2021 earlier this week.
The legislation that amends the Congressional Budget and Impoundment Control Act of 1974 establishes annual debt-to-GDP targets. These targets would gradually reduce the public debt over the next 30 years to approximately 50% of GDP (the average annual debt-to-GDP level over the past 30 years).
The Congressional Budget Office projects that the nation’s debt to GDP ratio will reach 102% by the end of 2021 and continue to rise to 202%over the next 30 years, a press release stated. This is significantly higher than any previous debt burden in American history.
The current and future debt levels are unsustainable and drastically increase the likelihood of a financial crisis. However, it is important to note that these alarming debt levels have not always been the case for the Federal Government throughout history.
After the introduction, Stewart issued the following statement:
Our spending is out of control. Our current economic trajectory and spending initiatives are dangerous and leaves our economy vulnerable. We can’t ignore it forever. It’s time for Congress to take responsibility and put our country back on the path towards fiscal responsibility.
More about the Debt-to-GDP Target Plan:
The Debt-to-GDP Target Plan would set into law annual debt-to-GDP targets that would gradually reduce the public debt over the next 30 years to approximately 50 percent of GDP (the average annual debt-to-GDP level over the past 30 years). This bill would reduce the debt from a projected 102 percent of GDP in 2021 to 50 percent of GDP by 2050.
This measure will be enforced through a reconciliation process where committees will receive directives to report on recommendations to achieve FY debt to GDP ratios. The collective report would be then be considered by Congress.
by Jennifer Weaver, KUTV
Sunday, February 28th 2021