U.S. Reps. Steve LaTourette (OH-14) and Jim Cooper (TN-05)
Tuesday, March 27, 2012
U.S. Reps. Steve LaTourette (OH-14) and Jim Cooper
(TN-05) Introduce Simpson-Bowles Federal Budget Alternative --
Bipartisan proposal would cut deficit by more than $4 trillion
over 10 years
U.S. Reps Steve LaTourette (OH-14) and Jim Cooper (TN-05)
today announced that they have filed a federal budget alternative
based on principles outlined last year by the National Commission
on Fiscal Responsibility and Reform, co-chaired by former Sen. Alan
Simpson and Erskine Bowles.
The Simpson-Bowles budget alternative, which has been endorsed
by the Committee for a Responsible Federal Budget, would trim the
deficit by more than $4 trillion over the next 10 years.
Other supporters include: U.S. Reps. Charlie Bass (NH-2),
Mike Quigley (IL-5), Tom Reed (NY-29), and Kurt Schrader
(OR-5).
The LaTourette-Cooper
substitute amendment would put our debt-to-GDP ratio on a
downward trajectory, decreasing to 67.9 percent in 2022. Two-thirds
of the deficit savings would come from spending cuts and one-third
from tax reform. The budget alternative would repeal the sequester
enacted by the August Budget Control Act, replacing the automatic,
across-the-board cuts due to begin in Jan. 2013 with a
comprehensive, balanced plan for deficit reduction.
"The bipartisan budget I support is based on the sound, sober
recommendations of the Simpson-Bowles budget where everything is on
the table and we trim more than $4 trillion off the deficit.
I'm tired of passing bills in the House, watching them die in
the Senate and pretending that counts as success," LaTourette
said. "Americans want us to work together like adults, pass a
budget with bipartisan support in both Houses and have it signed
into law. A partisan budget is not the way to go, and the budget
modeled after Simpson-Bowles is the only vehicle to get us
there."
Rep. Cooper also emphasized the need for bipartisanship,
saying: "The budget debate so far has been completely
partisan and our proposal is the only one with support from both
parties. Republicans and Democrats need to get serious about our
deficit and this is the only real plan that will restore America's
financial strength."
Former Sen. Alan Simpson urged passage of the bold, bipartisan
approach, saying: "I am so very encouraged to see members of
both parties working together to put forward a bold and
comprehensive budget plan that looks at all parts of the budget and
leave no sacred cows out on the range. I believe that if members of
Congress step up and agree to a bold plan like this, they will have
the true respect and support of the American public."
Meanwhile, Mr. Bowles had this to say: "Congressmen Cooper
and LaTourette, and all members who support their budget
alternative, should be commended for having the courage to
support a comprehensive fiscal plan that accepts the difficult
truths about the size and scope of the problem and represents the
kind of broad based reform we are going to have to adopt to avoid a
crisis. The approach they have put forward represents the best hope
for achieving the broad, bipartisan support necessary to enact a
serious fiscal consolidation package."
Here are some highlights of the Simpson-Bowles Budget
Alternative:
Takes the framework and benchmarks set by the President's
bipartisan National Commission on Fiscal Responsibility and Reform
and puts them into a budget resolution framework. Provides a
blueprint for committees of jurisdiction to draft specific policies
to achieve savings targets, based on the general principles
outlined in the Simpson-Bowles report.
Key principles
Embodies the Fiscal Commission approach
Shared sacrifice: Everything is on the
table
Big enough to matter: Cuts the deficit by over
$4 trillion over the next 10 years, sufficient to stabilize the
debt by 2015 and reduce debt as a percentage of GDP below 70% by
2020
Balanced approach: Achieves deficit reduction
with 2/3 spending cuts, 1/3 tax reform
Smart savings instead of dumb cuts: Permanently
repeals the sequester required by the Budget Control Act and
replaces across-the board cuts with a balanced, comprehensive
fiscal plan to reduce the deficit and stabilize the debt
Main elements
Tax reform:
Comprehensive tax reform to promote growth, simplify the tax
code, reduce marginal tax rates across the board, and reduce the
deficit by $1 trillion through 2021.
Reduces the $1.1 trillion in annual tax expenditures and tax
breaks
Reduce tax rates for individuals, small businesses, and
corporations
Health care:
Immediate reforms achieving savings of $485 through 2021 based
on principles and framework in Simpson-Bowles report to pay for
permanent fix to pay doctors treating Medicare patients (SGR fix)
and reduce costs over the next decade.
Sets a limit on long-term growth for federal health care
spending of GDP+1 requiring additional reforms if the policies in
this resolution and other reforms fail to keep spending below
targets
Discretionary spending:
Total discretionary spending for FY13 of $1.043 trillion and
growth limited to 1% below inflation after 2013 for total savings
of $625 billion beyond caps set in Budget Control Act
Additional savings divided proportionally between domestic and
defense spending
Other provisions:
Instructions for committees to find approximately $300 billion
in savings from other mandatory programs such as agriculture and
federal retirement
Bipartisan cooperation to enact plan to strengthen Social
Security and put it on a fiscally sustainable path based on the
principles and framework outlined in Simpson-Bowles report
Fully repeals sequester and replaces with comprehensive fiscal
plan
Strong enforcement mechanisms to enforce spending cuts and
ensure budget remains on a path to stabilize and reduce debt as a
percentage of GDP