TANNER WARNS COLLEAGUES
OF NATIONAL DEBT IMPLICATIONS

Fact Sheet Highlights How Debt Payments Divert from Nation's Priorities

Encourages Strict Adherence to 'Pay As You Go' Rules

U.S. Rep. John Tanner (D-TN) today sent a letter to his House Democratic colleagues about the negative effects the $9 trillion federal debt – and the interest payments it requires – has on other national priorities such as infrastructure and human capital.

Congressman Tanner is a founding member of the fiscally conservative Blue Dog Coalition. Thirty-one members have signed a Blue Dog letter insisting that legislation to relieve the Alternative Minimum Tax (AMT) adhere to the House’s PAYGO rules that require offsets for any new spending or reduced revenue.

The text of Congressman Tanner’s letter is below.

December 11, 2007

Our Legacy of Debt

Dear Democratic Colleague,

As we approach the end of the first session of the 110^th Congress, it is important to take note of our nation’s fiscal situation and reflect on why it is so important the House continue its strict adherence to the “pay as you go” rule that is central to balancing our budget.

You may have read a recent article from The Associated Press that highlighted that our federal debt continues to climb at a rate of about $1 million per minute. Knowing that you share my goal of leaving the world a better place for those who come after us, I wanted to bring your attention to some other eye-opening figures about the growing national debt and its implications for our nation and its people.

·        America’s gross national debt is now $9.17 trillion.

·        Since 2001, we have increased the privately-held debt by $1.8 trillion, 68% of it borrowed from foreign sources.

·        Because of the Bush Administration’s economic and fiscal policies, we have removed approximately $131 billion from the 2007 revenue base to pay interest on new debt.

·        As a percentage of gross domestic product, the national debt has doubled over the last 26 years.

·        The Reagan, Bush I, and Bush II administrations added $7.04 trillion to the national debt.  Those three administrations will account for 74 percent of the total national debt at the end of 2008.

·        Since President Bush took office, the gross national debt has increased by $3.427 trillion. That’s:

¨      $41.54 billion per month

¨      $9.57 billion per week

¨      $1.37 billion per day

¨      $56.93 million per hour

¨      $948,907 per minute

¨      $15,815 per second   

·        Since President Bush took office, we have borrowed $1.23 trillion from foreign sources. That’s:

¨      $15.45 billion per month

¨      $3.54 billion per week

¨      $505.6 million per day

¨      $21.07 million per hour

¨      $351,113 per minute

¨      $5,852 per second

·        This year we will have paid $239 billion in interest on the national debt. The same amount would pay for any of the following:

¨      Stocking every U.S. family’s refrigerator for seven months

¨      Filling every U.S. gas tank for 10 months at today’s gas prices

¨      Providing four years of in-state public tuition for 10.2 million students

¨      Paying one year’s salary for 8 million new teachers

·        The federal government has sent $709 billion abroad in the form of interest payments since President Bush took office – $155 billion in 2007. The same amount would fund any of the following:

¨      12,000 new elementary schools

¨      7,000 new veterans’ clinics

¨      All road and bridge construction and improvements for 10 years

Sincerely,

             John Tanner, M.C.

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Contact: Randy Ford, 202.225.4714