Sen. Conrad: Raise Revenues and Cut Spending to Address $6 Trillion in Projected New Federal Debt

By Nicholas Ballasy | January 28, 2010 | 3:29 PM EST

( – While the Congressional Budget Office (CBO) this week projected $6.074 trillion in new national debt over the next 10 years, Sen. Kent Conrad (D-N.D.) said the solution to the problem rests not just with cutting federal spending but also raising revenue. He also criticized offshore tax havens where apparently at least $100 billion is held.
At a press conference on Capitol Hill on Tuesday, asked Senator Conrad, "The CBO estimates that the current budget trend will add $6 trillion to the national debt over 10 years. Do you support cutting federal spending by $6 trillion over the next decade to balance the budget?"

Conrad said: “I don’t think this is the place to write a 5- or a 10-year budget but, clearly, spending restraint and dealing with the revenue side of the equation are both required.”
“As I said on the floor this morning, if you look at our revenue compared to the last 60 years, the revenue as a share of Gross Domestic Product is the lowest it has been in 60 years,” said Conrad. “Spending is the highest it has been as a share of GDP in 60 years so, clearly, you have to address both.”

Senator Conrad was also asked whether cutting federal spending takes precedence over raising revenue.
He answered: “I don’t do it in that way. I think both of them are a priority. I don’t know how you can separate the two or say one is a higher priority than the other. Both have to be addressed.”
“We have a revenue system that is hemorrhaging revenues to offshore tax havens,” said Conrad.  “The Permanent Subcommittee on Investigations says we are losing $100 billion a year to offshore tax havens, $50 billion a year to abusive tax shelters -- you know, that’s just inexcusable.”
In its report released on Tuesday,  the CBO projected there will bill $6.074 trillion in new national debt over the next 10 years if current laws governing taxing and spending are maintained.