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On behalf of FreedomWorks’ activist community, I urge you to contact your representative and strongly encourage him or her to cosponsor the One Percent Spending Reduction Act, H.R. 5572, introduced by Rep. Mark Sanford (R-S.C.). The bill, also known as the “penny plan,” would balance the federal budget in five years by simply cutting one penny from every dollar the federal government spends.
When the One Percent Spending Reduction Act was first introduced in Congress, in May 2011, the United States a $14.322 trillion national debt. Today, the national debt exceeds $21 trillion, and the river of red ink flowing from Washington, D.C. is threating to drown the American people.
According to the Congressional Budget Office (CBO), budget deficits are projected to rise, reaching $1 trillion annually in 2020, quicker than expected because of the passage of the Bipartisan Budget Act, which blew through the spending caps by nearly $300 billion over two years. The growth of federal budget deficits is not for lack of revenue into the coffers of the Treasury.
Between 1967 and 2016, the federal government took in average revenues of 17.4 percent as a percentage of gross domestic product (GDP). Over the next ten years, 2018 through 2027, the federal government is projected to receive revenues of 18.2 percent.
Average outlays between 1967 and 2016 were 20.3 percent of GDP. Between 2018 and 2028, federal spending is expected to eclipse 22 percent of the economy. The further out into the future, the budgetary picture only gets worse, and each American born will inherit a larger share of the national debt than the generation who came before them, diminishing prosperity and destroying opportunity.
The One Percent Spending Reduction Act would reduce federal noninterest spending by 1 percent over the next five years. The bill would also cap federal spending at 18 percent of gross domestic product. The legislation would allow Congress to make specific, targeted cuts to meet the required 1 percent spending reduction.
Our country is on an unsustainable fiscal path. The “penny plan” would put us back on the right track. For these reasons, I urge you to contact your representative and strongly encourage him or her to cosponsor the One Percent Spending Reduction Act, H.R. 5572.
Adam Brandon, President, FreedomWorks