Issue Position: Deficit and Debt

Issue Position

The prosperity of future generations of Americans is at risk unless Congress dramatically changes course. The annual deficit and overall federal debt are growing at a rate that is unsustainable and dangerous for the country. I join many Idahoans who are extremely concerned about the mounting debt. If we don't get a handle on this, interest rates will rise, foreign borrowing will increase, taxes will go up and the dollar may face collapse.

Historically, federal spending has been about 19 percent of the Gross Domestic Product (GDP). Federal spending is now at 24.7 percent of the GDP and is projected to rise to 25.2 percent by the year 2020. On the other hand, revenues to the government have averaged about 18.2 percent of GDP, and have only exceeded 20 percent one time in the last 40 years. Basic Idaho common sense makes it clear that we cannot continue to borrow our way out of this nightmare scenario. It has been estimated that our economy would have to grow at double-digit levels for 75 years just to close the debt gap. We cannot tax and spend our way out this problem.

I have been appointed to the National Commission on Fiscal Responsibility and Reform. While I am committed to being open-minded, bipartisan and fair in my service, the hard fact is that government is spending far in excess of its capacity. A significant part of the solution will be found in controlling spending. Congress must stop deficit spending and adopt tax policies that incentivize economic growth. We are saddling future generations with so much debt that, for the first time in American history, our children will have a lower standard of living. I have long supported a balanced budget amendment to the Constitution. Idaho can balance its budget; it's time that the federal government is required to do the same.

The burgeoning debt isn't caused because taxes are too low. Raising taxes, particularly during this sluggish economy, will not lead to increased revenue. In fact, following the 2001 and 2003 tax relief laws, revenue collected by the Treasury remained at, and sometimes above, the historic average until the current recession began. The latest report from the nonpartisan Congressional Budget Office states that if Congress extended the 2001 and 2003 tax relief past 2010 and passed no additional stimulus legislation, GDP growth would be higher and unemployment lower in 2011 than under projections based on current law. The smartest action Congress could take to get the deficit under control would be to extend tax relief set to expire at the end of this year along with a reduction in spending.

Congress must recognize, as the majority of Idahoans already do, that the federal government's spending is unsustainable. In addressing the country's debt and deficit, we will bring more economic security and stability to American families and provide stronger job growth in our country.

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