A Path to Balancing the Federal Budget

The Mack “One Percent Spending Reduction Act of 2011” (H.R. 1848) will achieve a balanced federal budget, beginning in 2019, by bringing federal spending down to average federal revenue over the past 30 years, which is 18% of gross domestic product (GDP).

KEY PROVISIONS:

One Percent Spending Reduction per Year:  The Mack One Percent bill cuts total spending – mandatory and discretionary – by one percent each year for six consecutive fiscal years, beginning in fiscal year 2012.

• FY 2012 – $3.382 trillion*, less one percent => $3.348 trillion cap
• FY 2013 – $3.348 trillion, less one percent => $3.315 trillion cap
• FY 2014 – $3.315 trillion, less one percent => $3.282 trillion cap
• FY 2015 – $3.282 trillion, less one percent => $3.249 trillion cap
• FY 2016 – $3.249 trillion, less one percent => $3.216 trillion cap
• FY 2017 – $3.216 trillion, less one percent => $3.184 trillion cap

Overall Spending Cap in FY 2018:  The bill sets an overall spending cap of 18 percent of GDP beginning in fiscal year 2018.

Enforcement of Spending Cuts:  The one percent spending cuts would be achieved one of two ways: either 1) Congress and the President work together to enact program reforms and cut federal spending by one percent each year; or 2) If Congress and the President fail to do so, the bill triggers automatic, across-the-board spending cuts to ensure the one percent reduction is realized.

 *Congressional Budget Office March 2011 Baseline for Total Outlays minus Net Interest

Presently the Mack Penny plan enjoys the support of more than 50 co-sponsors in the U.S House