Tag Archives: Congressional Budget Office

David Davenport: Coronavirus and the National Debt

What do coronavirus and the national debt have in common?  The answer is China.  Due in part to secrecy and poor management in China, suddenly the world confronts a major pandemic.  We’re reminded how interconnected our world is and how vulnerable we are to China.

Perhaps this is a reason to take the national debt more seriously.  China owns approximately 5 percent of our debt and some surprise there could have a major economic effect on the US.  It could be the next housing bubble and we are woefully unprepared.

A recent report by the Congressional Budget Office says our debt will equal 98% of the nation’s total economic output by 2030.  President Trump promised to eliminate the deficit in 8 years but what we’ve seen is a nearly 50 percent increase.

Let’s tell Washington to take the debt seriously and beware a bad surprise.

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Lanhee Chen: $15 Minimum Wage May Do More Harm Than Good

The Democrat-controlled House of Representatives recently passed legislation to raise the minimum wage from $7.50 to $15 nationwide.

While that might sound good to some, the reality is that such an increase may put up to 3.7 million people out of work, according to the nonpartisan Congressional Budget Office.

Particularly hard hit will be employees at small businesses, which are less likely to have the resources or profits to cover the proposed doubling of the minimum wage. While Democratic lawmakers had an opportunity to exempt the smallest of businesses from their bill, they declined to do so.

The proposed increase in the minimum wage may also have the effect of hurting teenagers or those who may just be getting started in the workplace.

Increasing the minimum wage may seem like a good idea. But like many of the ideas that progressive politicians are trumpeting, it’s likely to do more harm than good.

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Lanhee Chen: A Choice

Tax Reform

Liberals and many voices in elite media have touted the recent Congressional Budget Office analysis of the House Republican bill to repeal and replace Obamacare as a reason to oppose it.

But let’s be clear: The CBO estimates show that the legislation is fundamentally conservative. And while it’s not perfect, the American Health Care Act includes many important changes that will bring health spending down, cut taxes and lower costs for consumers.

For starters, the bill is estimated to reduce deficits and the debt by $337 billion over the next 10 years. Furthermore, the legislation includes almost $600 billion in tax cuts and is expected to lower premiums while contributing to a more stable marketplace for health insurance.

What we have before us is a choice: Do we continue to walk down Obamacare’s path to more deficits, less choice and higher health costs? Or do we work to pass an alternative that takes us in the other direction?

The American Health Care Act is a good start and we should work together to improve it and to get the job done.

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