|
FOR IMMEDIATE RELEASE |
February
10, 2001 |
| CONTACT:
Mark Daley |
(202)
225-5235 |
Balancing America's Checkbook
by Congressmen Allen Boyd
Washington's debate du jour currently features
the timing, size and composition of a tax cut
package that Congress and the President should
enact. Although this is an important discussion,
arguing about the details of a tax cut before
there is agreement on the overall budget is putting
the cart before the horse -- a strategy guaranteed
to send the cart's cargo of a strong economy into
a jumbled mess.
Before
we launch into a full-fledged debate over which
taxes to cut, how deeply to cut them, and when
to apply the knife, Congress must agree on a budget
plan that preserves the fiscal discipline necessary
for our future economic success.
As
a Co-Chairman of the Blue Dog Coalition, a group
of fiscally conservative House Democrats, I have
set forth several key principles of a budget plan
that we believe can win bipartisan support in
Congress.
Credible
Budget with Realistic Spending Caps. A
good budget plan is a useful blueprint for
all federal tax and spending decisions; a
bad budget plan is a blueprint for fiscal
disaster. Unrealistic spending levels in recent
budget resolutions have resulted in a chaotic
process that dragged on well beyond established
deadlines and produced irresponsibly high
spending. A budget which establishes new,
realistic spending caps will restore sorely
needed budgetary discipline.
Honest Surplus Figures. Bipartisan
majorities of Congress have voted repeatedly,
overwhelmingly and with great fanfare to place
Social Security and Medicare trust funds off
limits. But advocates of a large tax cut conveniently
ignore those bipartisan votes and continue
to cite surplus figures that include these
'out of bounds' surpluses in order to make
their tax cuts seem more affordable.
Flexibility.
Surplus projections are exactly that -
projections. In 1990, the projected budget
for the year 1995 was off by several hundred
billion dollars. Likewise, in 1995 the projected
budget for the forthcoming five year interval
was off by a similarly sizable proportion.
Our most accomplished economists cannot predict
natural disasters, military crises, or other
unforseen circumstances that require government
funds. Even the financial strains we can predict,
such as the retirement of the baby boom generation,
can not be fully appreciated a decade in advance.
Enacting policies today that consume most,
or all, of the projected surplus will hamstring
the flexibility of future Congresses to deal
with future circumstances and priorities.
Federal Reserve Chairman Alan Greenspan highlighted
this uncertainty in his testimony before the
Senate Budget Committee last week in advising
caution about making commitments based on
projections. In his testimony, he warned that
"the risk of adverse movements in receipts
is still real, and the probability of dropping
back into deficit as a consequence of imprudent
fiscal policies is not negligible."
Debt
Relief. Chairman Alan Greenspan has repeatedly
advised that paying down the publicly-held
debt is one the most important actions we
can take to maintain a strong and growing
economy. Reducing our national debt helps
investors who closely follow fluctuations
in the interest rate; moreover, it will provide
an immediate 'tax cut' for every American
that carries a student loan, car payment,
mortgage, or small business loan. By signaling
a real commitment to fiscal discipline,
Congress can win the confidence of markets
which is necessary for growth and stability
in the short and long-term.
I am eager to work with President Bush on his
agenda, including tax cuts. But I will not sacrifice
fiscal discipline in order to do so. There is
room for discussion and compromise on the exact
size and nature of a potential tax cut, as long
as changes are considered in the context of honestly
balancing competing budget demands. But before
we squander the strong economy of the last several
years by abandoning our hard-won fiscal discipline,
we should first take a step back and find common
ground on a fiscally responsible budget framework
that allows for debt relief, tax cuts and spending
priorities.
During the week of February 19, 2001, I will be
hosting town hall meetings throughout North Florida
to discuss the importance of responsible governing.
I encourage everyone to attend. If you would like
more information on these meetings, please call
my office at 850-561-3979. |
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