Cutting spending by only one percent each year would compound budget savings and go a long way toward solving our country’s budget problems, according to U.S. Senator Mike Enzi, R-Wyo, who introduced legislation earlier today that would implement such a plan.
The One Percent Spending Reduction Act of 2011 sets forth a straightforward method to achieve spending cuts necessary to right the fiscal ship of the United States, according to Enzi.
“This proposal is simple, effective and real. That’s a winning combination that I hope my colleagues can get behind. If they can’t, I hope the people who elect them will,” Enzi said.
The legislation balances the budget in the eighth year by reducing government spending each year by a total of one percent as specified by Congress. When a balanced budget is achieved, the bill places a cap on total spending each year. The new level of spending going forward would be the average level of spending over the past 30 years, roughly 18 percent of America’s total economic output. Over the 10 year budget window, the bill would cut spending by approximately $7.5 trillion from currently projected levels. The bill was previously introduced in the House of Representatives by Rep. Connie Mack, R-Fla.
“Fiscal sanity in Washington begins with returning to one of the most basic functions of government- watching out for tax payer dollars,” said Enzi. “If Congress can’t reduce spending by a single percentage point, each year, it basically has given up and decided to leave this huge and growing debt pile to tower above our children and grandchildren, casting a grand shadow over their future.”
If spending reductions required by this bill were not made by Congress and the President, across-the-board cuts would automatically kick in until the necessary spending reductions are achieved. This mechanism is meant to guarantee spending reductions are met and to force Congress to debate the merits of every cut.