Business Roundtable President John Engler testified this morning at a Senate Budget Committee hearing, "The Better Way: Benefits of a Balanced Budget." After several years of declining federal deficits, the United States is on an unsustainable fiscal path, he testified.

Citing CBO numbers, he warned of:

• The doubling of annual deficits within a decade. More than doubling, in fact:  from $483 billion in fiscal year 2014 to $1.1 trillion in fiscal year 2025.
• Soaring federal debt – rising more than $7.6 trillion over the next decade – representing 79 percent of GDP by 2025. That would be the highest ratio since the end of WWII.
• Federal government spending rising from $3.6 trillion today to more than $6.1 trillion by 2025.

If the nation continues on this course, interest rates will rise, raising the costs of government borrowing and crowding out more productive investment. As a share of the economy, net interest payments will climb from 1.3 percent of GDP to 3.0 percent in 2025 – and even higher in future years.

What's needed is fiscal discipline, the setting of priorities, and just as importantly, policies that promote economic growth, Engler testified before the committee chaired by Sen. Mike Enzi (R-WY):

Above all, a budget must be the blueprint for action – action that restrains spending, modernizes entitlements, and fosters the robust economic growth required to meet America’s many challenges.

Business Roundtable CEOs believe achieving robust economic growth is one of our nation’s most important priorities.

Further, they believe growth is achievable through policies like business tax reform, expanded U.S. trade, investments in physical and digital infrastructure, a fix of our broken immigration system, and a smarter approach to regulation.

In both his opening statement and more detailed prepared remarks, Engler cited business tax reform and modernizing of entitlements -- Medicare and Social Security -- as two priorities for returning the United States to long-term fiscal health and an economic environment more conducive to private investment.