Terry: Reduce the National Debt by $2 Trillion
Press Release
U.S. Rep. Lee Terry today vowed to fight next year in Congress for his plan to reduce the federal debt by $2 trillion.
Terry's plan could reduce federal spending on one of the largest line items in the federal budgetdebt service. His opponent, meanwhile, has endorsed billions of dollars in new spending on dozens of federal programs.
"There are two candidates in the race for Congress. I am the only candidate who is actually proposing a concrete way that we can reduce federal spending," Terry said.
The plan reduces the debt by placing all new federal revenues from expanded drilling in Alaska and the Outer Continental Shelf in a trust fund that would go for debt reduction only. Experts say this reduction could total $2 trillion over 30 years.
Terry's plan would reduce federal spending since appropriations for debt service are one of the largest line-items in the federal budget. As the debt goes down, the annual appropriation required for debt service decreases.
"My plan will put the country on a track to reduce the federal debt. This will enable us to pay less in debt service as time goes by. My plan constitutes a significant potential reduction in spending each year that can run into the hundreds of billions of dollars," Terry said.
Terry offered the proposal this year in Congress. H.R. 7029 was not acted on by the House but Terry vowed to try again next year.
"I am a conservative when it comes to spending issues," Terry said. "I believe it is a conservative principle to pay down the national debt. My plan could cut our debt by as much as $2 trillion over 30 years and, in doing so, secure our economic future."
The public debt is currently nearing $9.67 trillion$31,743 for every man, woman and child in the country.
The National Taxpayers Union has said expanded oil drilling could "yield nearly $2 trillion in overall revenue over 30 years, or an average of $65.5 billion per year." Known reserves of oil in Alaska and the Outer Continental Shelf are believed to total 107 billion barrels. Funds for the debt reduction would be generated through new lease sales, royalties, income taxes and excise taxes paid by petroleum companies that drill and extract new oil.
Terry said his proposal for reducing the nation's debt is a major reason the next Congress needs to approve more drilling for oil in Alaska and offshore.
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