http://usactionnews.com/2011/01/demint-warns-of-bankruptcy-draconian-tax-increases-and-economic-stagnation-offers-plan-to-cut-2-5-trillion/
Unless Washington takes swift action to cut spending, we will chain our children to debt and rob them of opportunity to reach for the American Dream. On its own, passing the Spending Reduction Act will not get us over the finish line — but we will get a $2.5 trillion head start.
By: Jim DeMint, Jim Jordan, and Scott Garrett at Washington Examiner
EXCERPTS:
When Nancy Pelosi became speaker of the House in January 2007, it stood at $8.6 trillion. Today, Americans must shoulder a national debt weighing in at a whopping $14 trillion, and the mountain grows larger every day. By the end of this decade, President Obama’s budget projections show the national debt nearly doubling its current size to $26 trillion.
These sobering numbers represent the path to bankruptcy, draconian tax increases, and economic stagnation.
Known as the Spending Reduction Act, this bill makes major strides toward resolving the debt crisis by cutting $2.5 trillion of spending between now and 2021. Here’s how it works:
In the short term, the Spending Reduction Act makes $125 billion of immediate rescissions, which target money already approved by Congress, by cutting current spending back to 2008 levels and repealing the remaining funds from Obama’s failed “stimulus” package.
The largest step toward spending reduction begins with the start of the next fiscal year on Oct. 1. On that day, the bill further cuts non-defense discretionary spending to 2006 levels and implements a hard freeze through 2021.
This alone will save taxpayers $2.3 trillion. A portion of these savings come from reducing the size and cost of the civilian federal work force. Attrition will trim the work force by 15 percent, while salaries will go without automatic pay increases for the next five years.
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