Issue Position: Eliminate Deficit Spending

Issue Position

Government spending is out of control! Every year over the past decade, the federal government has spent more money than it collects. And the amount the federal government spends increases every year. The Congressional Budget Offices estimates that the U.S. deficit for 2011 will be $1.3 trillion. This means the federal government will spend $1.3 trillion more than it has in 2011 alone. This is simply unacceptable.

I believe that the federal government must drastically cut its spending and end its unsustainable dependence on debt. The federal government should not spend more than the tax revenues it receives each year. I recognize, however, that given the numerous government programs currently in place, the cuts our country needs cannot happen instantaneously. They can happen quickly, but we need a reasonable and clear transition plan. Our economy is in a fragile state and if we recklessly cut spending, without careful thought and diligence, we may reap unintended consequences that could be more detrimental than the spending we seek to eliminate. I also believe that raising taxes to facilitate and enable the federal government's irresponsible spending is not the answer to our deficit problem. Spending cuts, not tax increases, should drive our deficit elimination efforts.

To permanently control federal government spending, I support adoption of a clean and simple balanced budget amendment to the Constitution that says (1) in any given year, the federal government cannot spend more than it takes in in taxes, and (2) any exception to this rule must be approved by a three fourths (3/4) majority in both the House of Representatives and the Senate. I believe that without a balanced budget amendment to the Constitution the federal government will not be able to effectively rein in spending.

I also support many of the recommendations contained in the Report of the National Commission on Fiscal Responsibility and Reform (Simpson-Bowles Report) regarding discretionary spending. For example, I support reducing the federal workforce via attrition, selling excess federal property, enacting comprehensive tax reform, and reducing agricultural subsidies.

Many people have asked me if I have a specific plan to attack federal deficit spending. Below are five steps that I will fight to implement as a member of the House of Representatives. I know that if these steps are followed, we can greatly reduce federal deficit spending:

1. Cap Overall Deficits

Before we can shrink the federal deficit we have to make sure it does not grow. Under current federal law, the government is subject to spending caps on discretionary spending. Discretionary spending, however, only constitutes approximately 35% of federal expenditures. Also, the spending caps are focused on expenditure levels and ignore potential variations in revenue collection. If mandatory spending continues to rise and revenue collection shrinks, the federal government could potentially increase its deficit spending even though discretionary budget caps are in place.

To guard against increasing deficit spending, Congress should cap its overall deficit rather than specific expenditures and prohibit any spending (as opposed to borrowing authority) that would cause a deficit above FY 2011 levels. By capping the deficit, Congress will be forced to examine all aspects of the budget (not just certain programs) and will be sensitive to the budgetary dynamics between different programs as every program will have to compete for a certain amount of funding. This cap will force the federal government to examine which programs are truly needed and which programs fit within its constitutionally limited authority. It will put into place a safety mechanism to ensure that deficits will not spiral out of control.

2. Raise Revenue by Improving the Economy

The federal government has a spending problem, but it also has a revenue problem. To claim spending cuts alone will balance the budget ignores the economic reality of our situation. According to the CBO, revenue collection in FY 2011 was the third lowest since 1971. We need to raise revenue and we need to do it without raising taxes. We can raise revenues without raising taxes by fostering private sector job creation and growing our economy. If more people are working, more people pay taxes and revenues increase. Similarly, if our economy grows and salaries increase, more total dollars are collected and revenues increase. We can raise revenues without raising taxes if we focus on putting people back to work and allowing the free market to operate efficiently.

To foster private sector job creation we need to reduce the regulatory burden on employers. Sarbanes-Oxley, Dodd-Frank, and Obamacare need to be repealed or significantly modified to reduce the cost and expense of compliance. We also need to reduce the uncertainty government creates when it takes fiscal issues to the brink and fails to provide a stable and predictable tax and regulatory structure.

3. Reform Social Security, Medicare, and Medicaid

Together, Social Security, Medicare and Medicaid account for approximately 41% of the federal budget. To tackle deficit spending, these programs must be reformed. Reforms, however, must be done carefully and over time with changes occurring in a manner that provides future beneficiaries an opportunity to adjust and plan accordingly. Some of the reforms that must be considered include:

Social Security

* Incentives to encourage voluntary waiver of benefits by Social Security recipients

* Methods to collaborate with states to reduce federal involvement in program

* Modifications to the current bend point factors to slow the growth of future benefits

* Updates to the cost of living formula to more accurately reflect cost of living increases

Medicare

* Incentives to encourage voluntary waiver of benefits (Medicare Part A)

* Restructuring of payments to reward overall patient health rather than number of services performed

* Methods to collaborate with states to reduce federal involvement in program

* Elimination of fraud, waste, and abuse

Medicaid

* Increasing the availability of state Medicaid waivers

* Elimination of fraud, waste, and abuse

4. Seek Efficiencies in the Department of Defense

In FY 2011, Defense spending was approximately $700 billion or nearly 20% of total spending. While we cannot compromise our national security, our military can be more efficient. We need to align our military workforce towards the goal of identifying reforms that reduce costs without compromising quality, safety, and services. Personnel and pay policies should be revised to reward people that find and implement efficiencies. We also need our military personnel to ferret out fraud, waste, and abuse.

5. Cut Programs That the Federal Government Should Not Be Administering

The federal government is too big and has overstepped its proper place in a constitutionally limited system of government. There are many programs in which the federal government should not be involved. For example, public education is an issue that is more properly addressed at a state and local level. To help reduce federal spending, we need to conduct a comprehensive review of all federal programs and identify the constitutional basis for each. Programs that do not have a clear constitutional hook should be (1) offered to the states to administer, and (2) if the states are not interested in the program, eliminated. This approach recognizes that even though the federal government should not be administering a program, that program may be valuable and may be continued if the states feel it is important.

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