Fiscal and Economic
More on Fiscal and Economic
Viewed in isolation, the Consolidated Appropriations Act of 2012 reduces total discretionary spending authority (those expenditures that don’t require statutory changes, including war and emergency spending) from $1.209 trillion in FY 2011 to $1.181 trillion in FY 2012), or $28 billion (2.3 percent). Viewed over the past five years, however, this still constitutes an increase of $144 billion, in discretionary spending (13.5 percent).
This may constitute an improvement over the past year, but begs the question, “Does it put the nation back on the path to fiscal solvency?”
One of the items of unfinished business remaining before this session is extending the payroll tax cut of last year that funds Social Security.
It’s an infra-marginal tax cut, meaning that it doesn’t change economic incentives and therefore it doesn’t produce lasting economic growth. But it does provide great relief to working families, allowing them to keep more of their earnings at a time of declining incomes, shriveling assets and rising prices, and it should be extended.
HR 3630 – Payroll Tax Cut Extension: NO. Although the temporary payroll tax cut doesn’t produce lasting economic growth, I support its continuation because it allows working families to keep more of their earnings at a time of declining incomes, shriveling assets and rising prices. But since the payroll tax funds Social Security, which is already in permanent deficit, these funds must be made up by other means. The healthy way to do so is HR 3551, which I cosponsored, to give every American the choice to receive the year of tax relief in exchange for delaying retirement by a month.
Congressman Tom McClintock (CA-04) and 11 cosponsors today introduced House Joint Resolution 84, a balanced budget constitutional amendment. The amendment consists of 27 words and prohibits the government from increasing U.S. debt except for a specific purpose and with the approval of three-fourths of Congress.
Congressman McClintock discussed the legislation in a House Floor speech. The remarks are attached below.
Back to Basics with the Balanced Budget Amendment
House Chamber, Washington, D.C.
November 2, 2011
House Chamber, Washington, D.C. November 2, 2011. Mr. Speaker: The International Monetary Fund estimated that as of Halloween night, the debt of this nation surpassed its entire economy for the first time since World War II. We all know that if you live beyond your means today you must live below your means tomorrow. That’s the tomorrow that our generation has created for the children who were dressed up as princesses and cowboys when they came calling on Monday. That is our generation’s eternal shame, and something that our generation must set right.
House Chamber, Washington, D.C. October 26, 2011. M. Speaker: The government’s continuing failure to address our nation’s gut-wrenching unemployment stems from a fundamental disagreement over how jobs are created in the first place.
We are now in the third year of policies predicated on the assumption that government spending creates jobs.
We have squandered three years and trillions of dollars of the nation’s wealth on such policies, and they have not worked because they cannot work.
The House Natural Resources Committee today passed Congressman Tom McClintock’s legislation, H.R. 2915, the American Taxpayer and Western Area Power Administration Customer Protection Act of 2011. The legislation repeals the 2009 Stimulus Act’s new $3.25 billion Western Area Power Administration (WAPA) loan authority, including the taxpayer bailout provision for failed renewable energy transmission projects.
August 1, 2011. The “Budget Control Act of 2011” increases the debt limit by between $2.1 and $2.4 trillion, the biggest explosion of debt in American history. It allows the government to avoid spending reductions for the next two years while squandering our last best hope of averting a sovereign debt crisis.
I am opposed to this measure for the following reasons: