Posted on 07/27/2011 12:35:04 PM PDT by SUSSA
Sean will have Conni Mack on next. Mack has a plan with REAL cuts that balances the budget in 6 years.
Congressman Mack today welcomed the support of Tea Party Senator Rand Paul (R-KY) as he signed on to the “One Percent Spending Reduction Act,” legislation - also known as the “Penny Plan” - that was introduced by Senator Mike Enzi (R-WY) last week, and authored by Congressman Connie Mack (R-FL) last spring in the U.S. House of Representatives.
Mack stated: “The support for the Penny Plan is growing almost daily on both sides of Capitol Hill as we draw closer to President Obama’s August 2 deadline to raise the debt ceiling and continue Washington’s reckless spending. Senator Paul’s election last year was another clear example of the voters saying ‘enough is enough’ with the way Washington spends their money and having Senator Paul’s support for the Penny Plan should send say to those voters, ‘We heard you loud and clear.’”
Presently the Mack Penny plan enjoys the support of over 40 co-sponsors in the U.S. House, the backing of the Republican Study Committee’s 103 Members, and two key U.S. Senators.
The Penny Plan balances the budget by:
— Cutting total federal spending by one percent each year for six
consecutive years,
— Setting an overall spending cap of 18 percent of gross domestic
product in 2018, and
— Reducing overall spending by $7.5 trillion over 10 years.
If Congress and the President are unable to make the necessary cuts, the bill’s fail-safe triggers automatic, across-the-board cuts to ensure the one percent reductions are achieved.
Last week Senator Enzi stated: “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.”
Mack added, “At President Obama’s news conference last week, he talked about hard-working American families having to make tough budget decisions at home - so is it too much to ask the federal government to do the same and eliminate one penny out of every federal dollar spent?”
“Listen to the plan! it is very good!”
I tuned in too late. Is it simple, doable, passable?
If the plan actually gets voted on and passes the House, it will get tabled in the Senate no matter how much pressure the citizens apply.
I tuned in too late. Is it simple, doable, passable?
####
It’s all three.
Thanks for the link and the summary.
How are you going to get it done right now? Please post a plan that can get through the House.
1% per year for 6 years?
That’s 6% (by my calculations).
Current Federal spending is roughly $3.7 trillion per year, of which roughly $1.5 trillion is borrowed.
6% of $3.7 trillion is roughly $220 billion, lowering the deficit from $1.5 trillion to $1.28 trillion.
Therefore, this “Penny Plan” is absolute BS.
What am I missing?
Yeah he blew my arm off, but, hey, at least it was with MY grenade!
I heard him on Hannity today.. I guess Sean isn’t a math major. We spent around 3.7T this year. 1% is 37B. So he’s saying if we cut 37B a year for 6 years we balance the budget??? How does that work?
Maybe he meant by 1% of GDP a year? But that’s like 150B a year.
I need to see the details on this.
A 1% cut in spending next year would be around 37B. The deficit is 1600B. How does cutting 37B for 6 years erase a 1600B deficit?
I assume you mean his great-grandfather Connie Mack. He’s also a great-grandson of Morris Sheppard, US Senator from Texas, who was the author of the 18th amendment.
First it cuts from current real spending rather than using the base line budgeting that assume an increases of 7% a year like the other plans being offered. So compared to the other plans on the table it saves 8% the first year alone and compounds theose savings each year.
Second the 1% is only part of the plan. It also caps overall spending at 18% of GDP starting in FY 2018. If I’m not mistaken Cut Cap and Balance caped spending at 20% of GDP.
Third it imposes a trigger if the cuts are not made.
But, Mack and everyone supporting the bill acknowledges that it also requires the balanced budget amendment be passed for the plan to work. No serious person will claim that spending can be controlled long term without the balanced budget amendment.
The Mack Penny Plan is not in place of the amendment. It is proposed as a companion to the BBA. It is offered as an alternative to the Boehner plan.
I didn’t write the bill and have not read the whole thing yet,(I’m trying to dig through it) but Rand Paul says it works and is the best plan on the table right now. So like him or not, Rand Paul is probably the most hard line deficit hawk in congress, and his endorsement, to me, means it is a serious plan.
I submit to you that it is way ahead of any plan that uses the base line numbers which assume an across the board 7% a year increase every year. Those plans count spending increases as cuts. This one doesn’t. That alone makes the Mack plan a good place to start in my opinion.
Matt Kibbe of Freedom Works stated: “ Washington is on an unprecedented spending binge. Our national debt has skyrocketed to nearly $14.4 trillion. The Republican Study Committee has listed the One Percent Spending Reduction Act as a bold solution in their “Cut, Cap and Balance” proposal letter to House leadership. The letter states that it would be fiscally irresponsible to raise the debt ceiling without immediate spending cuts, enforceable total-spending caps and a balanced budget amendment. Rep. Mack’s “penny plan” should be considered as the second part of the RSC’s “Cut, Cap, and Balance” approach for the debt ceiling in order to put federal spending on the path to a balanced budget.”
This bill (H.R. 1848) plus a massive revamp of the income tax system to at least the Steve Forbes flat income tax plan, would give such a huge boost to the economy that we’ll be on a major growth path within a year.
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