Allen Quist is committed to balancing the budget in five years. This will be done by a two-fold approach:
a) Encouraging economic growth, and
b) Putting annual limits on federal spending.
Thirty-six cents of every federal dollar spent in 2011 was borrowed. To balance the budget, the United States can achieve a 4% annual growth rate over the next five years--which translates into a 4% annual growth of tax revenue. That growth will close the current borrowing gap of 36 cents of every dollar borrowed, to 16 cents of every dollar borrowed, assuming that spending is not increased.
Achieving a 4% annual growth rate can be achieved by rolling back unrealistic regulation, by dropping the added costs the new health care law places on small business, by giving businesses the certainty of having a stable and well-managed national economy, and by relaxing EPA and other regulations that are driving up energy costs.
Eliminating the remaining 16 cents of every federal dollar spent that is now borrowed can be achieved by cracking down on fraud, especially Medicaid fraud (1 cent) and by setting spending limits that reduce federal expenditures by 3% each year for five years (15 cents). To reduce spending by that amount each year, annual spending limits must be put in place before appropriations bills are considered. Spending limits will require Congress to prioritize and restrain its spending.
No such spending limits now exist, which makes it impossible for Congress to realistically evaluate whether spending decisions are justified. Congress needs to change the way it does business and adopt a method similar to the way budgeting decisions are made in the State of Minnesota where spending limits are usually in place.