Nation’s Oldest Taxpayer Group Hails House Introduction of Budget Blueprint, Beginning of “Adult Conversation” in Congress
(Washington, DC) – By prudently slowing the growth of
federal spending and boldly restructuring health care programs to better
empower consumers, the House Republicans’ “Path to Prosperity” budget
resolution has shown taxpayers a promising way forward to a more fiscally sustainable
future. That’s the assessment of the 362,000-member National Taxpayers Union
(NTU), which offered praise today for many elements of the plan.
“Chairman Ryan and his colleagues have offered a
clearly and skillfully illustrated blueprint for putting the nation’s finances
on a more solid foundation, while opponents haven’t even been able to offer the
equivalent of a wet cocktail napkin,” said NTU Executive Vice President Pete
Sepp. “Naysayers and nitpickers are now on notice: ‘Tax someone else’ or ‘There’s
no problem’ were never credible responses to America’s debt crisis. But after
today’s introduction of the Path to Prosperity budget resolution, they’re
utterly irrelevant and indefensible.”
Sepp cited several desirable features outlined in the
Budget Committee’s plan, such as:
- Although
President Obama recently called for an extension of a freeze on certain
discretionary spending programs, the Path to Prosperity initiates such a freeze
after rolling back some outlays to pre-2008 amounts.
- The blueprint would
end the political protection racket for many sacred cows in the budget,
including agribusiness subsidies and excessive government employment levels,
while reforming others to work better, like the confusing maze of job-training
programs.
- Medicaid and
Medicare, which are the main medium-term cost drivers in the deficit spiral,
would be restructured using block grants and a premium-support model. Both of
these approaches could help to introduce more cost discipline as well as
consumer choice without relying on budgetary gimmicks. “From this point
forward, it is the ‘do-nothing’ crowd which deserves the blame for wanting to
‘gut Medicaid and Medicare,’” Sepp contended.
- The Path to
Prosperity makes a strong start toward reforming the nation’s uncompetitive tax
system by reducing rates, simplifying the bases, and streamlining compliance
for both individuals and businesses.
Noting that “taxpayers deserve more progress toward
balanced budgets,” Sepp said further steps beyond the Path to Prosperity
resolution should be taken to reach the goals of economic growth, job creation,
and debt reduction much sooner than the legislation envisions. In addition to
embracing the defense-spending recommendations from Secretary Gates, Congress
should seek more savings from military programs such as the $300-plus billion
outlined in a recent joint report from NTU and the U.S. Public Interest
Research Group. Instead of another non-specific Social Security reform process,
policies such as raising the retirement age, adjusting wage and benefit
formulas, and means-testing should be phased in now to address the program’s
quicker-than-anticipated downturn. A
constitutional amendment to require balanced budgets, limit taxes, and control
spending growth will be essential in securing long-term financial stability for
the federal government and the taxpayers who fund it.
“The Path to Prosperity has elevated the debate on tax
and spending policy in Congress to a thoughtful level not seen in years,” Sepp
concluded. “Going forward, all serious
proposals affecting America’s fiscal future should reflect a similar degree of
candor. For the sake of our children, grandchildren, and grandparents for that
matter, this is an adult conversation that has begun none too soon among
elected officials – one in which taxpayers have long been eager to
participate.”
NTU is a nonpartisan, nonprofit citizen group founded
in 1969 to work for lower taxes, smaller government, and economic freedom. Several
decades ago the organization was one of the first to call for entitlement
reforms and constitutional spending restraints. Note: For more on NTU’s work,
visit www.ntu.org.
Press Release
