I have consistently supported legislation and policies to get the nation’s long-term fiscal house in order by balancing the budget and reforming mandatory programs, so we can eventually pay down our debt.
Budget and Spending
The federal government must cut back on spending so that it can run efficiently and effectively for its citizens. Of the more than $3.7 trillion in annual spending by the federal government, about one third is spent on discretionary programs (those that Congress and the president control on an annual basis). But unless we take on the complicated task of reforming the other two thirds of government designated as mandatory spending (mostly entitlement programs), America will eventually go bankrupt.
The real challenge is that the mandatory side of the budget – including interest on the national debt – is by far the largest category and rapidly growing. Numerous facts, figures and economic analyses have for years warned about the unsustainable growth of mandatory spending. For example, the Congressional Budget Office (CBO) reported that mandatory represented 34 percent of all government spending in 1965; today, that figure has risen dramatically to reflect more than two-thirds of all spending in 2018. By 2028, mandatory is on track to cover at least 77 percent of all spending.
With mandatory spending, it’s not only the rapid rate of its growth, eclipsing discretionary spending, that is alarming. CBO has also projected that the federal trust funds connected to Medicare and Social Security are quickly nearing insolvency and thus will eventually fail to deliver on the benefits promised. On the current path and according to projections by the Congressional Budget Office, Social Security as a whole is expected to become insolvent in 2032 – with the Social Security Disability Insurance Trust Fund unable to pay out full benefits as early as 2028.
Long Term Reforms
Clearly, to make real progress toward tackling our burden of debt, tough decisions and careful solutions are required. But the solutions must include reforms to save and sustain the mandatory programs serving many vulnerable Americans. I believe a good place to start would be passage of legislation I introduced again this Congress, the Bipartisan Social Security Commission Act. The bill calls for a bipartisan and bicameral commission tasked with recommending reforms to ensure Social Security is solvent for at least 75 years. Congress would then be required to vote up or down on the commission’s recommendations within 60 legislative days. This approach worked in 1983 when the solvency of Social Security was extended by 50 years. It can work again if our political leaders will face up to their responsibilities and work in a bipartisan manner.
More on Economy
Just more than a year ago, members on both sides of the aisle in both chambers of Congress unveiled a two-year bipartisan budget deal. When the announcement was made by House Budget Chairman Paul Ryan and Senate Budget Chairman Patty Murray that a deal had been reached, it proved that, despite inevitable differences and even conflicting priorities, we can work together and lead in divided government.
Journal Record - Congressman Tom Cole
America was built by the hands of innovators and entrepreneurs, and it remains supported by likeminded individuals who desire for America to remain great. Our land is still filled with an abundance of untapped resources and human intellect that, when allowed to flourish, only strengthens our presence and standing in the world. Even in tough economic times, the American brand is in high demand, and our public policy should seek to keep it there.
As we navigate the waters of a still-struggling economy, the impact of potential solutions upon job creators and providers should be carefully considered. Whether in the short-term or long-term, any solutions should obviously help rather than hurt hardworking Americans. When the economic environment allows business owners and workers to thrive, the whole country feels the benefit.