Aug 24 2011

FT. MYERS NEWS-PRESS: Mack's Penny Plan takes debt seriously

August 23, 2011

Given the abject failure of Congress and the president to chart a meaningful course toward a saner federal budget, Congressman Connie Mack's "Penny Plan" to rein in spending deserves serious consideration in Washington.

The Fort Myers Republican used a town hall meeting Monday at Harborside Event Center to explain and promote his plan to a supportive crowd of about 500.

Mack introduced legislation 15 weeks ago that calls for a 1 percent reduction in federal spending for each of the next six years. In the seventh year, federal spending would be capped at 18 percent of gross domestic product.

Mack says that would achieve a balanced budget in the eighth year and reduce the country's frightening national deficit by $7.5 trillion.

The bill has 57 co-sponsors in the House and the companion Senate bill has a sponsor and five co-sponsors, including Florida Republican Sen. Marco Rubio.

Had Congress passed a more ambitious deficit reduction plan than the one approved earlier this month to avoid defaulting on our national debt, we might agree with those who say plans like Mack's are too inflexible and draconian.

But Congress and the president failed to reach any such agreement. The plan that passed offers little hope of success.

First, about $1 trillion will be cut from discretionary spending in the next 10 years to reduce the projected deficit. A bipartisan "super-committee" of representatives and senators will then supposedly find another $1.5 trillion in deficit cuts by this Thanksgiving. If the plan fails, $1.2 trillion in across-the-board cuts are triggered, with Medicare and Medicaid exempted - a short-sighted dodge.

The plan does way too little to reduce the deficit or bring the budget into reasonable balance. Given the die-hard opposition of super-committee members to tax increases (in the case of Republicans) or spending cuts without tax increases (on the part of Democrats), there is little prospect for agreement. It is, in effect, an admission of Congress's inability to deal with the problem.

Mack's plan directly addresses current spending, not just the deficit. And if Congress fails to meet spending reduction targets, there would be automatic across-the-board cuts - but with nothing exempted, not Medicare, not Medicaid, not defense. That's the way automatic cuts ought to work if they are to serve as a strong incentive for legislators to legislate.

Mack's plan and others that target spending only without tax increases would produce harsh cuts. There will be heavy demands for more - not less - federal spending, for example as baby boomers become eligible for Medicare and Medicaid for nursing home care.

A better way would be a mixture of spending cuts and tax increases to gradually reduce the deficit until spending and revenues are in reasonable balance.

Then, the national debt itself - due to hit $15 trillion this year - can be cut.

But so far, the politicians in Washington have shown no ability to reach any such agreement.

That makes the Penny Plan an attractive alternative for those who actually want to do something about our dangerous deficit and debt problem.

Urge our leaders in Washington to give HR 1848, Mack's "Penny Plan," a fair hearing.

Find more information at conniemack.com.



Office Locations

  • Washington, D.C.

    115 Cannon House
    Office Building
    Washington, D.C. 20515
    Phone: 202-225-2536
    Fax: 202-226-0439
  • Cape Coral, FL

    804 Nicholas Parkway E.
    Suite 1
    Cape Coral, FL 33990
    Phone: 239-573-5837
    Fax: 239-573-9125
  • Naples, FL

    3299 Tamiami Trail East
    Suite 105
    Naples, FL 34112
    Phone: 239-252-MACK (6225)
    Fax: 239-252-8065
Office Locations Map