Saturday, July 23, 2011

One Patriot's Plan to Attack the Federal Deficit/Debt

After following yesterday’s fiasco in the Senate where Democrat Majority Leader Harry Reid chided and belittled the Republicans for proposing such a comprehensive, realistic though imperfect plan (as Cut, Cap and Balance) to deal with our national deficit and debt, I decided to develop my own common sense plan. This plan roughly follows the Cut, Cap and Balance structure of the Republican House passed bill. See what you think.

This is also partially in response to lack of any White House or the Senate plan for dealing with the deficit/debt. Actually the Senate has not even proposed nor produced a budget for over two long years. Although they had the time to push through an inordinately irresponsible, costly, unnecessary so-called health care “reform” bill, which turns out to be just an expansion of big government control.

Part 1

Given that Congressional or Presidential commitments, though foolish, negligent and reprehensible as they may be, have incurred debt that must be repaid. I think that the President is asking for $2.4 Trillion. Given his track record, he should not be given the amount he requests. I took a number, $1.7 Trillion which would increase the Debt Ceiling to the ridiculous amount of $16 Trillion. That is $1.7 more than Congressman Ron Paul would bequeath to our irresponsible President and Congress. However, we have to have some starting point. I do attach some caveats on the increase in the Debt limit, though.

First, it should be stipulated that the debt ceiling increase should be FROZEN by law at the $16 Trillion figure. Furthermore, it should be legislated that it would take ¾ of both houses of Congress and the President’s signature to ever increase that amount in case of an unforeseen happening.

Second, and here is the tough part for Congress, that increase must be offset by 1/3 cut of the Debt Limit increase, (the $1.7 Trillion) to government spending in FY 2011/FY 2012. This means that the President and Congress would have to come up and approved $570 Billion in cuts over the next 15 months. In addition, the FY 2013 budget must be trimmed 2/3 of the $1.7 debt limit increase, or $1.4 Trillion. This gives the President and Congress over a year to prepare for some very significant cuts. Maybe this will take their lustful eyes off more spending …

Both of these provisions would be codified in the law. All of these items would be included in the Stop the OverSpending Act of 2011 (SOS).

Part 2

Starting with FY 2014 government spending must be reduced to no more than 20% of the Gross Domestic Product (GDP.) (It amounts to more than 24% now, thanks to spendthrifts in the White House and 111th Congress).

That’s not all. The Debt Ceiling limit, instead of increasing as in past years, now there must be regular reductions in the overall Debt Ceiling limit. Commencing in FY 2014 the Debt Ceiling will be ratcheted downward by a $1 Trillion. This would occur annually until there would be no Debt Limit.

Both of these provisions would be codified in the law. All of these items would be included in the Stop the OverSpending Act of 2011 (SOS).

Part 3

The final portion of the plan would be to pass a Balanced Budget Amendment by FY 2020. If the Amendment is not passed by then the Stop the OverSpending Act would mandate that government spending must be reduced an additional 1% each year that the Amendment is not passed. This would give both the Federal and the State legislatures an incentive to get the Amendment passed.

I offer his plan to help Congress to get off dead center, to get off the fence, to encourage Congress to stop kicking the can down the proverbial road and deal with this true man-made disaster, our rampant national deficit and debt.

This plan is serious. Therefore, it will take a massive effort to accomplish it. I do not know whether the complacent Congress and the pandering progressive President have the will to do what is necessary to right the ship. Only if they do something significant, the the plan outlined above is there hope for America. Anything else takes us on the sure path to bankruptcy and ultimate destruction.  

I will forward this plan to Speaker Boehner.

1 comment:

Matt said...

Your ideas are good, but it will not work unless ALL of these ideas (and more) are incorporated into a constitutional amendment. You cannot bind Congress with a rule that they must do this or that without a constitutional amendment. Any other law or rule can simply be changed by a future (or even the current) congress. Secondly, there is nothing in your proposal which would prevent the Congress from simply printing the money to pay for the wasteful spending. You must end the federal legal tender laws and require that all taxes, and debts that the government owes must be paid in REAL money. (Gold and silver. Energy could be added to the list as part of the Constitutional amendment.) Then, even if they print the money, no one will take it because it won't be worth anything. If you just change the monetary policy, you don't really need any further limits or restrictions like 3/4 requirements, etc.