Dear Member of Congress:
On behalf of the362,000 members of the National Taxpayers Union (NTU), I urge you to supportthe “One Percent Spending Reduction Act of 2011.” Introduced as H.R. 1848 byRepresentative Mack and as S. 1316 by Senator Enzi, this legislation wouldreduce non-interest federal spending by one-percent per year for the next sixyears with the aim of achieving a balanced budget by 2019.
After decades offiscal mismanagement our federal government is on a crash course - not onlywith the $14.3 trillion debt ceiling, but with eventual insolvency. Under themost likely scenario, the Congressional Budget Office predicts that public debtas a share of Gross Domestic Product (GDP) would test levels typicallyassociated with fiscal crises by 2020, would exceed its historical peak of 109percent by 2025, and would reach an unfathomable 185 percent in 2035.
To steer Americaaway from this reckless path NTU and a broad coalition of concernedorganizations have rallied behind the “Cut, Cap, and Balance” approach. Webelieve it is only through immediate and substantial cuts to governmentspending, enforceable statutory spending caps that work toward sustainabilityand a Balanced Budget Amendment to the Constitution to more permanently reconcilereceipts and expenditures, that America can put its fiscal house back in order.
By graduallybringing federal spending down to 18 percent of GDP and then maintaining thatlevel every year thereafter, the One Percent Spending Reduction Act seamlesslyfits within the goals of Cut, Cap and Balance. This bill would make cuts - theequivalent of one cent of every dollar spent - each year for six years. Thiselegantly simple solution would steadily reduce outlays from $3.382 trillion in2012 to $3.184 trillion in 2017 before capping spending at 18 percent of GDP, therebybringing it in line with annual revenue averages.
Furthermore,if Congress is unable to curb its spending habits to fit within the stricturesof the given statutory caps, the Office of Management and Budget would be taskedwith issuing across- the-board cuts to maintain the proper direction toward abalanced budget. The One Percent Spending Reduction Act also avoids thefailings of past loophole-riddled spending cap plans, by ensuring that nofederal programs, with the exception of interest payments on the national debt,are exempt from cuts.
NTUhas long advocated for structural budget-process reforms to prevent a fiscalcalamity. Accordingly, we continue to believe that a Balanced Budget Amendmentto the Constitution is vital to ensuring that deficits are the exception ratherthan the norm. Nonetheless, the One Percent Spending Act is a valuablecomponent of a comprehensive Cut, Cap and Balance approach that addresses ourimmediate needs for spending restraint as well as our enduring structuralweaknesses. NTU is pleased to endorse this legislation and any roll call voteswill be significantly weighted in our annual Rating of Congress.
Sincerely,Brandon GreifeFederalGovernment Affairs Manager