1% Spending Reduction Act Of 2011 Balance Fed Budget?

Posted on May 19, 2011 by

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H.R.1848, the “Spending Reduction Act 2011”, was introduced to the house nine days ago, on May 10 by Florida Representative (GOP) Connie Mack. This bill was introduced “To prevent a fiscal crisis by enacting legislation to balance the Federal budget through reductions of discretionary and mandatory spending.” (from official text of bill H.R.1848). This bills official text pointed out some GREAT stats that I love… those stats show the truth about federal spending and other contributors to our federal debt (stats below in bullet points).

  • Federal spending has grown from 18 percent of GDP in 2001 to 24 percent of GDP in 2010
  • Total Federal debt exceeds $14 trillion and has increased $4 trillion in the past three years alone.
  • Without action, the Federal government will continue to run massive deficits in the next decade and total Federal debt will rise to $24 trillion by 2021.
  • Interest payments on this debt will soon rise to the point where balancing the budget as a matter of policy is beyond the reach of Congress.
  • From 1980 to 2010, Federal revenues averaged 18 percent of GDP and are projected to return to that level within the next decade.
  • Absent reform, the growth of Social Security, Medicare, and Medicaid will overwhelm all other Federal programs and consume all projected tax revenues.

As you see all of those statistics are great statistics that back up the Spending Reduction Act 2011.

WHAT THE BILL WOULD DO…

  • Starting fiscal year 2012 we would cut 1% in spending EACH YEAR for 6 consecutive years
  • Set an overall spending cap in fiscal year 2018 that is equal to 18% GDP
  • Enforce spending caps by authorizing mandatory spending cuts
  • Reform entitlement programs

This bill will be doing much needed things if the bill is voted into a law. I believe Connie Mack is supporting that we need to ONLY SPEND THE MONEY WE HAVE… AND SPEND IT WISELY! The fact America hasn’t been doing that IS the reason America is in such a big hole…

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Posted in: Politics