Reed Lauds Trillion Dollar Cuts in Fiscal Year 2012 Proposed House Budget

Press Release

Congressman Tom Reed today applauded the efforts of House Budget Committee Chairman Paul Ryan's (R-WI) fiscal year 2012 House budget resolution, which would cut $6.2 trillion in government spending over the next decade.

"Chairman Ryan's proposal signals we are finally understanding the grave financial situation our country is facing and that we are willing and able to make those difficult decisions," Reed said.

Along with the $6.2 trillion cuts in spending through the next 10 years, The Path to Prosperity will reduce the debt as a percentage of the economy and put the nation on a path to pay off the national debt. The proposal also brings federal spending to below 20 percent of gross domestic product and reduces deficits by $4.4 trillion, while creating 2.5 million private-sector jobs. It is projected to result in $1.1 trillion in higher wages and an average of $1,000 in additional family income each year.

The main components of the proposal are spending reduction, welfare reform (such as Medicaid block grants), health and retirement security, Social Security solvency, budget enforcement, and comprehensive tax simplification.

"I understand we will be dealing with some very complex issues, like entitlement program reform," Reed said. "It's certainly not easy, and we will have to dig deep to find some real solutions. But we cannot continue to hide from the problem. We are taking the initiative because prior leadership failed to do so, and now we have no more options, nowhere left to go. We will not continue to jeopardize the future of our country just because we don't feel like dealing with difficult issues."

"This is exactly the kind of plan we need to pull our country out of this economic mess. We will reduce our debt, reduce the size of the federal government, and get our neighbors back to work. This is precisely why I ran for office. I do not want my children or future generations saddled with the crushing debt we have placed on them. I want to see small businesses prospering, creating jobs, and investing in our communities again."