Issue Position: Fiscal Responsibility

Issue Position

Our Fiscal Time Bomb and My Solutions

During the month of February this year, our federal government incurred a $223 billion deficit. That's $7.4 billion per day! The State of South Carolina spends roughly $21 billion per year. Thus, every 3 days in February, our federal government went in the hole the size of South Carolina. This is unsustainable and I want to be a voice for fiscal responsibility.

The number one issue in our District is jobs. However, the number one issue in our nation is our fiscal irresponsibility. This irresponsibility, unlike other issues, is bipartisan. In 2000, the United States had a national debt of $5 trillion. In 2008, we had a national debt of $10 trillion. Most of that was under complete Republican control. However, in 2009, President Obama added $1.4 trillion to our national debt. In 2010, President Obama's budget has a projected $1.6 trillion deficit. Think about that -- from our Founding until 2000, we had a national debt of $5 trillion. In Obama's first two years, we will have amassed a debt of $3 trillion. This is unsustainable.

So, what would I do? First, I would propose a Balanced Budget Amendment. Second, I have the political courage to address our entitlement programs of Social Security, Medicare and Medicaid. Third, I would help put Americans back to work and rebuild our economy.

Demand Balanced Budgets

To balance the federal budget and set our nation on a path of fiscal responsibility, I would

(a) propose a Balanced Budget Amendment, (b) reform the budgetary process, (c) propose a Line-Item Veto Amendment, (d) reject the use of earmarks, and (e) pay down the current debt.

Balanced Budget Amendment

In 1995, the House passed a Balanced Budget Amendment but it fell one vote short in the Senate. My first legislative priority will be to propose a Balanced Budget Amendment. This comes down to basic philosophy. I believe the federal government should spend within its means. Otherwise, one generation passes the buck to the next generation. Leaving future generations with debt is immoral and oppresses their prosperity. As Thomas Jefferson warned, "The Earth belongs to the living, not to the dead." Unfortunately, the living will be paying for the dead for generations to come.

Reform the Budgetary Process

The complexity of the problem is how Congress develops its budget. This should be simple - just debate what is needed and pay for it right? No, instead, Congress debates 13 appropriation bills with exception of huge "off-budget" items (ie Social Security, Medicare). In addition, federal budgets are under a five-year budgeting formula and have automatic annual increases. Finally, some federal programs continue perpetually without annual review.

I propose zero-baseline budgeting that requires Congress to revisit budget items for effectiveness. I propose zero-based budgeting to eliminate automatic budget increases. I propose sunset legislation that provides expiration of federal programs unless reviewed. I propose returning all federal expenditures "on budget."

Line-Item Veto

The Line-Item Veto Act of 1996 provided President Clinton the power of the pen to strike through pork barrel spending. It allows the President to take the heat for striking spending when irresponsible legislators cannot. This Act was struck down by the Supreme Court in a 6-3 decision. Legislators lack the political courage to refuse pork spending and earmarks. I support "fast-track veto" rules or a Line-Item Veto Amendment to provide this power to the president.

Earmarks

We must demand that our representatives take a stand against earmarks. In the 2010 budget, Representative Barrett requested $13.3 million in earmarks. Multiply that by 434 other representatives and you can see part of the problem. Don't mistake me. I will fight to bring money back to our District. However, at some point, the fiscal time bomb of our country outweighs the ability to bring money to the District. We must first agree to have a balanced budget, then we can fight over who gets what. Earmarks not only increase our debt, but they also curry favor between our representatives and special interests.

Pay Down the Debt

Finally, we Americans should realize how much we pay in interest on the debt each year. In 2008, the federal government spent $450 billion on interest. (This does not pay down principal -- purely interest on the debt). Interest is the fourth most expensive item in our federal budget. To put this in perspective, we spent more on interest than we did in Iraq and Afghanistan combined in 2008. To put it into further perspective, we could fund South Carolina's government for 21 years in what the federal government pays in interest for 1 year.

Address Social Security, Medicare and Medicaid

Social Security, Medicare and Medicaid account for nearly every penny received in revenue by our federal government. This means that our national defense, research and development, and every other federal government expense has to be paid for by either borrowing or printing money.

It is both politically incorrect and political suicide to address these issues. This is why these entitlement programs have not been addressed even though Medicare will be insolvent by 2017 and Social Security by 2037. However, in times of need, real leaders act. I received my Social Security statement today. An asterisk noted that I would only receive 76% of my scheduled benefits. When I realize that those under the age of 40 will work longer and taxed more for fewer benefits while the current leaders continue to spend as they do, it is time to act.

Social Security

Despite a 12.4% tax on each check in America, Social Security is paying out more money than it receives. The surplus money over the past few decades that should have been held in trust has been spent. Now, we must raise the retirement age, reduce benefits or increase taxes. Because past and present leaders have been anything but fiscally responsible, all those currently paying into Social Security will pay more and receive less.

I take care of my dad's finances. He is on a fixed income of Social Security. He, like many in his generation, were promised government would provide for them in their retirement. I do not believe we reduce the current benefits to our senior citizens. However, as someone under the age of 40, I would be willing to be a voice to reform Social Security for my generation. We need to return to personal responsibility. I believe if given the opportunity to invest and plan for our own retirement, my generation would sacrifice this government entitlement. Thinking boldly, I would support a program in which half of the FICA taxes continued to support our senior citizens but half go into a personal retirement account. My plan would require another position paper, but in short, it would end this entitlement as we know it and would take that unfunded liability off of government's books.

Medicare and Medicaid

Medicare and Medicaid are two other programs of entitlement. In 2008, we spent $600 billion in Medicare and Medicaid. Again, I do not believe in changing the promises made to our senior citizens. I also do not believe in drastic and immediate change. However, I would be willing to be a voice to reform these two programs for my generation. I sincerely believe that my generation's fight will be the fiscal time bomb our past and present leaders have created.

The first issue is the rise in health care costs. Unfortunately, the Health Care Reform Act did nothing to curb health care expenses. In fact, health care costs will continue to rise. I believe the reason health care costs have risen is precisely because government has been involved. Government has encouraged our employer-based system. I propose the same tax deduction a business receives be applied to individuals. This would solve the problem of portability and pre-existing conditions. This would place more responsibility on the individual. I propose opening up the insurance markets across state lines. These two measures, I believe, would drastically reduce the cost of health care.

The second issue is, again, the sense of entitlement. Yes, we pay into Medicare our entire adult lives. However, everything paid into Medicare can be wiped out with one catastrophic event. I agree we are the wealthiest nation and health care is important. However, when we are spending twice as much as we receive, we must realize that resources are not infinite. Our government should encourage personal responsibility, not governmental reliance. Individuals should be accountable for our health care beyond retirement.

Rebuild the Economy

Without a strong economy, neither balanced budgets nor entitlement reform will do any good. Jobs is the number one issue in our District. I believe we need to focus on small business. You help small business by reducing its taxes. The United States has the second highest corporate tax rate in the world. You also help small business by reducing the rules and regulations to both create and maintain business. Second, I believe our next representative needs to be the best sales person that he or she can be. He needs to understand the role of the state government with local government and how vital infrastructure is. In our District, we have the technological and higher institutions that can prepare a workforce for new industry. We have the resources to be a national leader in nuclear power. Rebuilding our economy must be a part to balancing our budget.

Campaigning over the last year has shown that I am the fiscal conservative in this race. I have made the economy and fiscal issues the focal points of my campaign and many debates. As your next Congressman, I will be a voice for fiscal responsibility.

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