Read Pete's Vision For Fiscal Responsibility

Tuesday, March 21, 2006 - PRESS RELEASE

Read Pete's Vision For Fiscal Responsibility

Nebraskans value responsible government spending and want more control over their money with less interference from the government. We need to control spending, balance the budget, and encourage investment to spur the economy. Fiscal discipline will be my top priority in the United States Senate. As a businessman and problem solver, I balanced budgets by watching the bottom line and controlling spending. With my business experience, I am uniquely qualified to work with the federal budget and help prioritize expenditures. I will get into the details of spending and help balance the budget. The best way to reduce the national debt is to cut taxes and grow our economy. I believe that can be accomplished by focusing on:

? Controlling federal spending and reforming the spending process;

? Making tax relief permanent and simplifying the tax code;

? Promoting a culture of fiscal responsibility.

Controlling Federal Spending and Reforming the Spending Process

In 2006, our deficit is expected to reach at least $337 billion. Our current national debt is eight trillion dollars. I believe our spending system is broken and must be reformed. As a nation, we have to get our spending under control. Large deficits hurt the future of the U.S. economy with the potential for higher taxes and cuts to vital programs like Social Security. As a fiscal conservative, I will vote for measures that make meaningful cuts in spending and support bills that eliminate or limit the earmarking process. I will also support bills that limit the scope of legislation so that projects irrelevant to the bill's objective cannot be added. We must not allow the federal budget to be misused for special interest projects. I will work for new legislation to end special interest spending, a renewed commitment to enforceable spending caps, and a line-item veto.

Currently, special interest spending includes 14,211 earmarks worth $53 billion. Current legislation, such as the Federal Government Spending Accountability and Oversight Act and the Obligation of Funds Transparency Act, are measures designed to limit special interest spending. These proposals will allow lawmakers to view earmarks before voting on a bill and allow Congress to conduct in-depth reviews of its spending. I believe earmarks should be eliminated or placed in the legislative text before being voted on. Bills also should include the name of the lawmaker who proposed the earmark, which district will benefit from the earmark, the earmark's national purpose, a list of lobbyists who lobbied for it, and an up-or-down vote.

A renewed commitment to enforceable spending caps will help to balance the federal budget. Prior to 1974, the President had the authority to impound funds and help control deficit spending. In the 1974 Congressional Budget Act, the President lost this power and Congress was able to access funds they had previously been unable to use without Presidential approval. Making the budget process more stringent would help our lawmakers and the President to be more fiscally responsible.

I would support President Bush in his push for a line-item veto. Although this measure has been rejected in previous years, I believe it could be a key tool in fighting spending and budget deficits. We must have the remedies at our disposal to combat earmarks and special interest spending. If the current legal problems with the line-item veto could be resolved, I would support and work for a line-item veto.

Making Tax Relief Permanent and Simplifying the Tax Code

Nebraskans believe in personal responsibility. We want more control over more of our money. I want a tax system that is simple and fair. We must streamline the tax system. That means getting rid of redundancies in our current tax system like the death tax (also referred to as the inheritance or the estate tax), supporting a low capital gains tax, an increased child tax credit, and an examination of a fair or flat tax plan, or a combination of both. We need to make the President's tax relief permanent. This will benefit all Americans.

Monies subjected to federal tax when they were earned should not be penalized again when they are left to someone else. I would support measures, such as the Death Tax Repeal Permanency Act, that are designed to make our tax system fairer.

I support measures that assist families, such as President Bush's increase of the child tax credit and a low rate of capital gains tax that encourages savings and investment, which in turn spurs our economic growth. Tax cuts support young and working families by allowing them to keep more of their money and make the decisions that are best for them.

Our nation saw major tax cuts in the 1960s and 1980s. In both cases the results were economic growth and more government revenue. The Reagan tax cuts of the 1980s resulted in the longest peacetime expansion of the economy in U.S. history. Tax cuts improve the economy.

It is important that we examine all options. I am open to learning about and discussing the flat tax and fair tax systems. It is clear that our current tax system needs revision. We must streamline the tax system and make it more just. A new point of view is needed and I am willing to work towards new ideas and common sense solutions.

Promoting a Culture of Fiscal Responsibility

To lower the federal deficit and make tax cuts permanent we must foster a culture of fiscal responsibility in Washington. Currently, U.S. citizens save an average of four percent of their income. How can we encourage personal responsibility when our government has difficulty with overspending? Members of both parties have attempted to implement measures beyond our government's fiscal means. To combat this we must change the culture in Washington. Leadership requires making tough decisions. We need to prioritize how our money is spent. The 2006 Defense Bill contained multiple projects that were unrelated to our national defense or security. Among them were $1,600,000 for Lewis and Clark Bicentennial Activities and $2,000,000 for the Presidio Trust, a park in San Francisco, CA. We must stop special interest spending and put an end to riders on must pass bills. If these measures are necessary to gain votes in Congress then perhaps the bill is not worth passing. I am in favor of increased visibility into the spending activities of both the House and Senate. I will work with members of both parties to successfully promote a culture of fiscal responsibility.

Controlling federal spending and reforming the spending process, making tax relief permanent and simplifying the tax code, and promoting a culture of fiscal responsibility will help our economy remain strong. As Nebraskans, we want local control and economic opportunities. We can work to stop spending at the federal level and ensure programs like Social Security remain intact. As your United States Senator, I want to work with other members of Congress to control spending and create new opportunities for the American people.

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