Two Urban Institute experts appeared before the Senate Budget Committee on January 30, 2007 to offer exit strategies from an unsustainable fiscal path. Robert Reischauer, invited by committee Democrats, and Eugene Steuerle, asked to attend by Republicans, both answered questions on how to craft politically unpopular laws to reign in costs.
Robert Reischauer
The recent fiscal situation and the intermediate-term budget outlook may appear relatively benign, Urban Institute President Robert Reischauer told the Senate Budget Committee, but deficits and debt will gradually grow to unprecedented and unsustainable levels if current tax and spending policies are not altered significantly. "The challenge we face," he said, "is determining how to balance our desire for improved health against our other priorities. We cannot have it all and ask our children and grandchildren to pick up the tab." The longer policymakers wait to act, the more wrenching the adjustments will have to be. Read Reischauer's full testimony
Gene Steuerle
In testimony before the U.S. Senate Budget Committee, senior fellow C. Eugene Steuerle explained how, in recent decades, the government has wound a straightjacket around federal spending and tax subsidies. The main culprits have been in the broad areas of retirement, health, and taxation. Left alone, it leaves Congress with almost no control over its own budget. Only major systemic reform can restore a normal democratic process. He also highlighted ten consequences of the current budgetary situation. Read Steuerle's full testimony
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