Sending Office: Honorable Mark Sanford
Co-Sponsor H.R.5572 – the One Percent Spending Reduction Act of 2018
a.k.a. the “Penny Plan”
Co-Sponsors (8): DesJarlais, Gaetz, Gohmert, Gosar, Jones, Massie, Meadows, Palmer
The country’s debt problem continues to compound, as total federal debt is expected to increase from $21 trillion this year to $33 trillion in 2028. Interest payments on the debt are scheduled to rise from $316 billion this year to $915 billion by 2028.
Those payments represent the cost of servicing our national debt, and by 2023 they will be greater than what we spend on the Department of Defense. In other words, paying for upkeep costs on past spending will exceed spending on the core federal responsibility
for defending the homeland.
The gravity of the situation requires bold action. That’s why I’ve decided to reintroduce to this Congress
H.R. 5572, the One Percent Spending Reduction Act, also known as the Penny Plan. This bill would put into place outlay caps on all spending, not just the 34 percent of the budget that
is discretionary. Each year the Act is in effect, total federal spending other than interest payments is reduced by one percent overall, until FY2024, when federal spending and revenues return to alignment. From then on, total outlays including interest are
capped at 18 percent of GDP, bringing the budget back into balance according to CBO’s projections, and putting our country firmly on the road to long-term solvency.
Congress has the option of avoiding the one-percent cut by making specific spending reductions. For instance, in a given year, if Congress makes spending reductions equal to .25 percent of federal spending, then the prescribed cut for that year is only
.75 percent. It’s my hope that this will help focus policymakers on making smart, effective reductions to federal spending.
The advantages of this approach are significant. On the policy side, the Penny Plan returns the budget to balance in only five years. On the messaging side, the idea of a one-percent cut is easy to explain and communicate.
I urge you to sign on as a cosponsor.
FreedomWorks is in support of the bill. To cosponsor or for additional information, contact John Schuler in my office at email@example.com.
Member of Congress
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