March 15, 2007
HP-320

Statement By Treasury Secretary
Paulson on Senate Budget Committee
Passage of Budget Resolution

"The budget resolution reported by the Senate Budget Committee today assumes a significant tax increase, which is the last thing our economy needs as we work to extend the current expansion.  I am also disappointed that the resolution doesn't address entitlement reform.  The rising costs of Social Security and Medicare, if left unchecked, will ultimately consume the bulk of the federal budget.  Balancing the budget is only one step toward addressing entitlements, which is the long-term fiscal challenge.  We must also keep the economy growing, both to create jobs and increase wages for American workers and to put us in a stronger fiscal position to deal with the growing entitlement challenges in the coming years."