FreedomWorks

While America faces many challenges in the 21st century, possibly the greatest long term threats to the American way of life are future crippling tax hikes needed to support an out of control federal budget. According to the non-partisan Congressional Budget Office, federal spending as a percentage of GDP will grow from 20 percent in 2007 to 41.8 percent of GDP in 2050.

Nobel Prize winning economist Milton Friedman once said the real rate of taxation is the level of government spending. At a time when governments are cutting taxes across the world, the United States is setting a dangerous course to catastrophically high levels to support a bloated government.

Looking at the long term challenge, the Republican Study Committee (RSC) today offered a constitutional amendment designed to get the budget under control. RSC Chairman Jeb Hensarling (R-TX), and RSC Members John Campbell (R-CA), Paul Ryan (R-WI), Lynn Westmoreland (R-GA), Scott Garrett (R-NJ), Jeff Flake (R-AZ), Jim Jordan (R-OH), Doug Lamborn (R-CO), Mary Fallin (R-OK), Tom Feeney (R-FL), Phil Gingrey (R-GA), Bill Sali (R-ID), and Michele Bachmann (R-MN) proposed a constitutional amendment to cap the size of government at levels that correspond to America’s ability to pay for it.

The proposed Spending Limit Amendment would limit federal spending to no more than 20 percent of GDP and allow the budget to grow by no more than inflation plus the rate of growth of GDP. These strict limits could only be temporarily suspended by a two-thirds majority vote of congress or by a declaration of war.

FreedomWorks Chairman Dick Armey commented:

"A basic economic principle that it is not possible for a country to sustain a government that consistently grows faster than the economy. We are mortgaging our children’s future for a government they did not desire and do not have the ability to pay for. The Spending Limit Amendment would provide real restraint and force congress to live within a budget and set priorities. I applaud the RSC for taking this bold step to continue the small government revolution."