Jenny Beth’s Journal: The Solution to Our Spending Crisis is the Penny Plan
A recent poll came out showing a high level of support for a solution to the growing spending crisis. The penny plan would require the government to reduce the budget by one penny for every dollar it spends annually for five years.
The new poll, commissioned by Club for Growth, found support for the penny plan runs wide as 76 percent of Republicans, 68 percent of Independents, and 63 percent of Democrats surveyed said they back it. Why not? The penny plan is not some radical policy. It simply requires a spending cut of 1 percent in the next year. The penny plan is not new. Neither is its strong level of support across party lines. This new poll tracks what Tea Party Patriots found three years ago. In that survey, 82 percent said they would support reducing spending “by just one penny out of every dollar spent” over the next five years to balance the budget.
Why does the penny plan have such strong support? Because Americans have come to realize that the deficit problem in Washington is caused by spending too much rather than taxing too little. Numbers from the Treasury Department show that, despite the predictions made by leftists who opposed the tax cuts, they have resulted in increased inflows to the federal government. The latest monthly statement from the Treasury Department showed record total tax revenues of more than $252 billion, up more than $11 billion from this time last year. It represents the most money ever collected by the Treasury Department in the month of October. Yet the federal deficit ballooned to more than $100 billion last month because we ended up spending more than $353 billion.
Clearly, the deficit comes from the spending problem. We do not run a deficit because we tax too little. We run a deficit because we spend too much. It is going to get worse if we fail to change the track we are on. The data projections by the Congressional Budget Office for the next 10 years show that the federal spending is estimated to grow at an average annual rate of 5.5 percent and is expected to reach $7 trillion by 2028.
Republicans have an opportunity during the lame duck session to pass a measure that will reduce spending. The penny plan is not a radical policy; the majority of voters support it; and it is an effective way to reduce the spending of money our country doesn’t have. Please call your senators and representative urging them to pass the penny plan.