Our Fiscal Time Bomb and My Solutions
During
the month of February this year, our federal government incurred a $223
billion deficit. That's $7.4 billion per day! The State
of South Carolina spends roughly $21 billion per year. Thus, every
3 days in February, our federal government went in the hole the size
of South Carolina. This is unsustainable and I want to be a voice
for fiscal responsibility.
The
number one issue in our District is jobs. However, the number
one issue in our nation is our fiscal irresponsibility. This
irresponsibility,
unlike other issues, is bipartisan. In 2000, the United States
had a national debt of $5 trillion. In 2008, we had a national
debt of $10 trillion. Most of that was under complete Republican
control. However, in 2009, President Obama added $1.4 trillion
to our national debt. In 2010, President Obama's budget has a
projected $1.6 trillion deficit. Think about that – from our
Founding until 2000, we had a national debt of $5 trillion. In
Obama's first two years, we will have amassed a debt of $3 trillion.
This is unsustainable.
So,
what would I do? First, I would propose a Balanced Budget Amendment.
Second, I have the political courage to address our entitlement programs
of Social Security, Medicare and Medicaid. Third, I would help
put Americans back to work and rebuild our economy.
Demand Balanced Budgets
To
balance the federal budget and set our nation on a path of fiscal
responsibility,
I would
(a) propose a Balanced Budget
Amendment, (b) reform the budgetary process, (c) propose a Line-Item
Veto Amendment, (d) reject the use of earmarks, and (e) pay down the
current debt.
Balanced
Budget Amendment
In
1995, the House passed a Balanced Budget Amendment but it fell one vote
short in the Senate. My first legislative priority will be to
propose a Balanced Budget Amendment. This comes down to basic
philosophy. I believe the federal government should spend within
its means. Otherwise, one generation passes the buck to the next
generation. Leaving future generations with debt is immoral and
oppresses their prosperity. As Thomas Jefferson warned, “The
Earth belongs to the living, not to the dead.” Unfortunately, the
living will be paying for the dead for generations to come.
Reform
the Budgetary Process
The
complexity of the problem is how Congress develops its budget.
This should be simple - just debate what is needed and pay for
it right? No, instead, Congress debates 13 appropriation bills
with exception of huge “off-budget” items (ie Social Security,
Medicare). In addition, federal budgets are under a five-year
budgeting formula and have automatic annual increases. Finally,
some federal programs continue perpetually without annual review.
I
propose zero-baseline budgeting that requires Congress to revisit budget
items for effectiveness. I propose zero-based budgeting to eliminate
automatic budget increases. I propose sunset legislation that
provides expiration of federal programs unless reviewed. I propose
returning all federal expenditures “on budget.”
Line-Item
Veto
The
Line-Item Veto Act of 1996 provided President Clinton the power of the
pen to strike through pork barrel spending. It allows the President
to take the heat for striking spending when irresponsible legislators
cannot. This Act was struck down by the Supreme Court in a 6-3
decision. Legislators lack the political courage to refuse pork
spending and earmarks. I support “fast-track veto” rules or
a Line-Item Veto Amendment to provide this power to the president.
Earmarks
We
must demand that our representatives take a stand against earmarks.
In the 2010 budget, Representative Barrett requested $13.3 million in
earmarks. Multiply that by 434 other representatives and you can
see part of the problem. Don't mistake me. I will fight
to bring money back to our District. However, at some point, the
fiscal time bomb of our country outweighs the ability to bring money
to the District. We must first agree to have a balanced
budget, then we can fight over who gets what. Earmarks not only
increase our debt, but they also curry favor between our representatives
and special interests.
Pay
Down the Debt
Finally,
we Americans should realize how much we pay in interest on the debt
each year. In 2008, the federal government spent $450 billion
on interest. (This does not pay down principal – purely interest
on the debt). Interest is the fourth most expensive item in our
federal budget. To put this in perspective, we spent more on interest
than we did in Iraq and Afghanistan combined in 2008. To
put it into further perspective, we could fund South Carolina's
government
for 21 years in what the federal government pays in interest for 1
year.
Address Social Security,
Medicare and Medicaid
Social
Security, Medicare and Medicaid account for nearly every penny received
in revenue by our federal government. This means that our national
defense, research and development, and every other federal government
expense has to be paid for by either borrowing or printing money.
It
is both politically incorrect and political suicide to address these
issues. This is why these entitlement programs have not been addressed
even though Medicare will be insolvent by 2017 and Social Security by
2037. However, in times of need, real leaders act. I received
my Social Security statement today. An asterisk noted that I would
only receive 76% of my scheduled benefits. When I realize that
those under the age of 40 will work longer and taxed more for fewer
benefits while the current leaders continue to spend as they do, it
is time to act.
Social
Security
Despite
a 12.4% tax on each check in America, Social Security is paying out
more money than it receives. The surplus money over the past few
decades that should have been held in trust has been spent. Now,
we must raise the retirement age, reduce benefits or increase taxes.
Because past and present leaders have been anything but fiscally
responsible,
all those currently paying into Social Security will pay more and
receive
less.
I
take care of my dad's finances. He is on a fixed income of Social
Security. He, like many in his generation, were promised government
would provide for them in their retirement. I do not believe we
reduce the current benefits to our senior citizens. However, as
someone under the age of 40, I would be willing to be a voice to reform
Social Security for my generation. We need to return to personal
responsibility. I believe if given the opportunity to invest and
plan for our own retirement, my generation would sacrifice this
government
entitlement. Thinking boldly, I would support a program in which
half of the FICA taxes continued to support our senior citizens but
half go into a personal retirement account. My plan would require
another position paper, but in short, it would end this entitlement
as we know it and would take that unfunded liability off of government's
books.
Medicare
and Medicaid
Medicare
and Medicaid are two other programs of entitlement. In 2008, we
spent $600 billion in Medicare and Medicaid. Again, I do not believe
in changing the promises made to our senior citizens. I also do
not believe in drastic and immediate change. However, I would
be willing to be a voice to reform these two programs for my
generation.
I sincerely believe that my generation's fight will be the fiscal time
bomb our past and present leaders have created.
The
first issue is the rise in health care costs. Unfortunately, the
Health Care Reform Act did nothing to curb health care expenses.
In fact, health care costs will continue to rise. I believe the
reason health care costs have risen is precisely because government
has been involved. Government has encouraged our employer-based
system. I propose the same tax deduction a business receives be
applied to individuals. This would solve the problem of portability
and pre-existing conditions. This would place more responsibility
on the individual. I propose opening up the insurance markets
across state lines. These two measures, I believe, would drastically
reduce the cost of health care.
The
second issue is, again, the sense of entitlement. Yes, we pay
into Medicare our entire adult lives. However, everything paid
into Medicare can be wiped out with one catastrophic event. I
agree we are the wealthiest nation and health care is important.
However, when we are spending twice as much as we receive, we must
realize
that resources are not infinite. Our government should encourage
personal responsibility, not governmental reliance. Individuals should
be accountable for our health care beyond retirement.
Rebuild the Economy
Without
a strong economy, neither balanced budgets nor entitlement reform will
do any good. Jobs is the number one issue in our District.
I believe we need to focus on small business. You help small business
by reducing its taxes. The United States has the second highest
corporate tax rate in the world. You also help small business
by reducing the rules and regulations to both create and maintain
business.
Second, I believe our next representative needs to be the best sales
person that he or she can be. He needs to understand the role
of the state government with local government and how vital
infrastructure
is. In our District, we have the technological and higher institutions
that can prepare a workforce for new industry. We have the resources
to be a national leader in nuclear power. Rebuilding our economy
must be a part to balancing our budget.
Campaigning over the last year has shown that I am the
fiscal conservative in this race. I have
made the economy and fiscal issues the focal points of my campaign and
many debates. As your next Congressman, I will be a voice for
fiscal responsibility. |
