Reversing the Spending Trend

Reversing the Spending Trend
By Tom Cole
February 22, 2005

The same type of discussion that takes place around a family dinner table about a yearly budget also occurs in Congress. Decisions must be made on what can be afforded and what must be eliminated. A family must live within their means and so should the federal government. Unfortunately lawmakers have a history of spending beyond the country's earnings. In 2004, Washington collected $1,880 billion in revenues but spent $2,292 billion. This trend will not and cannot continue.

This month the President presented Congress with a budget for the federal government that restrains spending and limits the growth of the government. Fiscal responsibility is absolutely necessary as the deficit continues to rise, placing a great burden on future generations and weakening the dollar against currency around the world. I favor reducing the deficit by confronting runaway entitlement spending, reducing waste fraud and abuse and by continuing to implement a pro-growth tax policy.

Entitlement programs, which comprise two-thirds of all federal spending, are currently growing seven percent annually. This is above the rate of inflation and a larger increase than spending on national defense. Under the current budget process members can introduce entitlement programs without suggesting a way to pay for them. To make significant progress in reducing the deficit and downsizing the federal government we must make a commitment to reduce entitlement spending.

A second way that the government could reduce spending is to wipe out wasteful, fraudulent programs and abusive spending. I am currently involved in a group called Waste Watchers that is also working to identify examples of wasteful or abusive spending. Duplicative programs also cost the government money. For example, 12 different federal agencies have authority over 35 different areas of food safety law. Not only does this cost the federal government money because of inefficiency, according to the General Accounting Office it also costs $37 billion each year in medical expenses because of unsafe food. The goal of Waste Watchers is to be a watchdog for Congress to make sure these mistakes are fewer and farther between. Also, in this year's budget, the President proposed 150 possible reductions or eliminations in programs that are not meeting the needs of the nation. Congress will review his proposals and will make a final decision on their effectiveness and their future.

Lastly by reducing tax obligations and encouraging economic growth, Congress can increase revenue and downsize the deficit. Last year it was projected that the deficit would be $521 billion. Largely because economic growth generated stronger revenues than originally estimated the 2004 the deficit came in $109 billion lower than estimated. By holding spending and implementing pro-growth tax policies we can continue to make great strides toward a lower deficit. It is always better to put more money in the hands of the consumer, instead of the federal government.

During this session of Congress I will continue to work to implement these policies that will reduce the size of the government, while eliminating the deficit. The President has proposed a tough, but a good budget and Congress should hold to its strict line of spending, while also looking for additional opportunities to practice fiscal responsibility.

http://www.house.gov/apps/list/hearing/ok04_cole/reversingspending.html