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US Senator Gary Peters highlighted the importance of addressing the growing national debt in his second speech, revealing that the federal deficit for this year has already passed $2 trillion. He underscored past congressional actions that successfully lowered the deficit, such as the bipartisan government funding package in 1996 and the Balanced Budget Act of 1997, but criticized tax cuts passed during the Bush era which benefited high-income earners and increased the federal debt. Peters argued that the current Congress has an opportunity to reverse these impacts through bipartisan government funding bills, and warned against a continuation of past trends that could lead to economic catastrophe.
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WASHINGTON, DC – U.S. Senator Gary Peters (MI) recently took the floor in the Senate to deliver his second speech centered on the escalating national debt. This follows an earlier speech in July where he raised concerns about the unsustainable fiscal path that the country is on. Peters also shed light on the Congressional Budget Office’s recent estimate which reveals that this year’s federal deficit has crossed $2 trillion, marking it as the third-highest deficit recorded in a single fiscal year, exceeded only by the first two years of the COVID-19 pandemic.
In his compelling address, Peters stated, “The increase in our debt by $700 billion in a mere six weeks since my previous speech is a jarring indication of the urgency of this issue. As we barrel towards the next government funding deadline, it is crucial to reflect on how we ended up in this predicament and explore potential solutions.”
To view the full coverage of Peters’ speech on the Senate floor, click here.
Peters drew attention to past legislative measures that effectively reduced the deficit. These include the bipartisan government funding package passed in 1996, and the Balanced Budget Act of 1997, which established budget limits. The result of these combined efforts was four consecutive years of budget surpluses.
Peters noted, “During this period, our economy experienced significant growth. Unemployment and inflation rates plunged to their lowest since the 1960s. Unfortunately, this was the first time since 1969 that our country saw a budget surplus, and we have not managed to repeat this feat since then. This demonstrates that when we work together, setting politics aside and focusing on sensible solutions that benefit everyone, progress is achievable.”
However, Peters pointed out that the progress was undone in 2001 when Congress, under President George W. Bush, enacted a series of tax bills that marked the return of yearly fiscal deficits.
Peters emphasized, “I firmly believe in tax bills that offer relief to middle-class families – the backbone of our economy – and ensure that everyone pays their fair share. Regrettably, the tax cuts implemented during the Bush era did the exact opposite. They primarily benefited the wealthy, and in doing so, escalated the federal debt by trillions.”
Peters went on to highlight the efforts made by Democrats – including the Inflation Reduction Act that he helped to pass in 2023 – to curb the burgeoning debt. This law paved the way for a $250 billion reduction in our debt, enabled significant clean energy investments, and effectively lowered prescription drug costs for Americans. However, he expressed his concern that the recent One Big Beautiful Bill Act, passed by Republicans and President Trump, would undo this progress and add trillions more to the debt.
Peters voiced his dismay, stating, “This bill, enacted this past summer, not only stripped millions of people of their healthcare and cut food assistance, making it harder for families to feed themselves, but also added a staggering $3.5 trillion to the federal deficit.”
Peters added, “Our national debt now stands at over $37 trillion, all because my Republican colleagues seem to believe that tax cuts for the ultra-rich will miraculously benefit our country at large. However, we have repeatedly seen that this approach yields negative results.”
In conclusion, Peters stressed the urgent need for Congress to come together and pass sensible, bipartisan government funding bills to meet the needs of American communities and reverse the disastrous economic impact.
Peters warned, “Failure to act would lead to economic disaster and perpetuate the damaging economic trends we’ve witnessed over the past thirty years. We cannot afford to let this happen and must strive to break these destructive cycles before it’s too late.”
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