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Budget, the Economy, and Taxes

Responsible Management of American Finances

In the U.S. Senate, Jeff Sessions has earned the reputation as a tough fiscal conservative. At every turn, Sessions works hard to limit spending, keep taxes low, and fight waste, fraud, and abuse.

Senator Sessions knows that low taxes lead to economic growth, and he believes that Americans know how to spend their hard-earned money better than politicians in Washington. Putting money back in the taxpayers' hands allows individuals to invest in the future of our country.

Sessions regularly stands guard on the Senate floor looking out for the American taxpayer by offering amendments and pursuing bipartisan efforts to combat wasteful and unnecessary spending. In 2001, Senator Sessions introduced the "American Family Economic Security and Stimulus Act" to provide immediate assistance for displaced workers and tax relief for working Americans. In 2005, he introduced legislation to immediately eliminate the death tax. In 2007, Sessions successfully championed a bill through Congress to create a federal law to punish those that fraudulently obtain federal disaster assistance during a national emergency, like Hurricane Katrina. He offered an amendment to the Senate Budget Resolution to make it easier under Senate procedures to extend President Bush's expiring pro-family, pro-growth tax cuts.

As a member of the Senate Committee on the Budget since 2003, Senator Sessions has worked to develop reasonable, responsible budgets that meet our national priorities without excess growth of the federal government. At a time when the nonpartisan Congressional Budget Office warns that “U.S. fiscal policy is on an unsustainable path,” Sessions understands the need to get tough on Washington-style borrowing and spending.

Sessions’ Efforts to Rein in Spending

Senator Sessions offered an amendment to impose a tough, binding cap on government spending. Currently, spending restrictions contained in each year’s budget are difficult to enforce and often ignored. Sessions’ proposal would impose a new 67-vote threshold to waive those restrictions, except in cases of designated national emergency.

Sessions' amendment is substantially similar to spending caps that were part of budget reforms passed in the 1990s, which led to 4 balanced budgets during that time. However, spending ballooned when the caps were allowed to expire in 2002. Sessions' current proposal is endorsed by independent budget watchdogs, including Citizens Against Government Waste, the National Taxpayers Union, and the Heritage Foundation.

To view the amendment sponsored by Senator Sessions (R-AL) and Senator McCaskill (D-MO) please click here.

Press Release

Statement

Issue Brief from the Concord Coalition

Background Information for Constituents

National surveys show that the American people are worried about the country’s burgeoning debt. This is no longer solely an academic debate, as interest payments on our debt mean there is less to spend on other government services. By 2019, the country’s annual interest payment is projected to reach $800 billion—more than 20 times what we currently spend on education.

As a service to his constituents, Sen. Sessions will post occasional updates for those who wish to read about the fiscal situation for themselves.

Budget and Appropriations Process

“The federal budget is a compilation of numbers about the revenues, spending, and borrowing and debt of the government. Revenues come largely from taxes, but stem from other sources as well (such as duties, fines, licenses, and gifts). Spending involves such concepts as budget authority, obligations, outlays, and offsetting collections. The numbers are computed according to rules and conventions that have accumulated over the years; they do not always conform to the way revenues and spending are accounted for in other processes.

[…]

When Congress appropriates money, it provides budget authority, that is, authority to enter into obligations. Budget authority also may be provided in legislation that does not go through the appropriations process (direct spending legislation). The key congressional spending decisions relate to the obligations that agencies are authorized to incur during a fiscal year, not to the outlays made during the year. (Obligations occur when agencies enter into contracts, submit purchase orders, employ personnel, and so forth; outlays occur when obligations are liquidated, primarily through the issuance of checks, electronic fund transfers, or the disbursement of cash.)”[1]

America’s Debt and Deficits Problem

Deficits
- A deficit occurs in any year when outlays are greater than revenues; in other words, when expenditures are greater than taxes and other government income.
Debt
- The national debt is the accumulated total of every year’s deficits. As of today, the national debt stands at $12.31 trillion.
- National Debt Limit: On January 28, 2010, Democrats raised the national debt limit by $1.9 trillion. The vote, which passed by a tally of 60–39 with no Republican support, increased the debt ceiling to $14.3 trillion.
- The debt ceiling has been increased a number of times in recent months. Since February 2008, Congress has been required to raise the debt limit a total of five times, from $10.62 trillion to its current level of $14.3 trillion.

Fiscal Year 2011, Running from October 1, 2010 through September 30, 2011

Presidents FY2011 Budget
Congressional Budget Office
- CBO recently projected that the federal budget would show a $1.3 trillion deficit for FY2010. This comes on the heels of last year’s deficit on $1.4 trillion, which was the highest ever.
  - Summary
  - Full report
- Director Doug Elmendorf’s testimony before the Senate Budget Committee (Jan. 28, 2010)
FY2011 Appropriations Process (Expected later this year.)

Fiscal Year 2010, Running from October 1, 2009 through September 30, 2010

Presidents FY2010 Budget
Congressional Budget Resolution
- FY 2010 Concurrent Budget Resolution
- Comparison of House- and Senate-passed Budgets
Individual FY2010 Appropriations bills
- Agriculture
- Defense
- Energy & Water
- Homeland Security
- Interior and Environment
- Legislative Branch
- Transportation/HUD
  - NOTE: This bill was passed as an omnibus, meaning that unfinished appropriations bills were rolled into one large bill and passed at the end of the year. Among the bills included were appropriations for Commerce/Justice/Science; Financial Services; Labor-HHS; Military Construction and VA; and State and Foreign Operations.