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What is the One Percent Solution?
No, it is not a Sherlock Holmes novel.
It is a solution to this country’s debt problem. A solution the media for some reason is not giving much publicity.
Why? The media would rather focus on Republicans refusing to raise tax rates. They continue to perpetuate the class warfare notion of the rich needing to pay more. Although if you lower the tax rates and eliminate loopholes as many Republicans want to do, you will increase tax revenues and the “rich” will pay more. Meanwhile the media is reluctant to point out the Democrats unwillingness to cut spending and that is what the one percent solution is all about.
On May 11 Rep. Connie Mack introduced the “One Percent Reduction Act of 2011.” What this act seeks to do is cut one penny from every dollar of spending for the next six years. Then in the 7th year cap spending at 18% of GDP.
The Legislation seeks:
- Spending caps on total government spending (both discretionary and entitlement) equal to a one percent reduction in spending each year for six years.
- Congressional action to reform spending programs to meet the One Percent caps. In meeting the caps, Congress may cut some programs more than 1 percent and some less, as long as totalgovernment spending is reduced by 1 percent each year for six years;
- If Congress fails to enact the needed reforms, then mandatory, “across the board” spending cuts occur each year to bring spending reductions into line with the One Percent spending caps.
- Starting in the seventh year (2018) and thereafter, the bill caps overall spending at 18 percent of Gross Domestic Product (GDP) to ensure that it is line with expected future revenues. (Historically, federal revenues have averaged 18 percent of GDP.)
Seems straight forward does it not?
How does it compare with other plans?
I hear you asking it. I do. Really.
Take a look at the chart:
With a $14 trillion debt and credit agencies threatening to downgrade the county’s credit rating, our government is still unwilling to cut a single penny from every dollar spent. Go to onepercentsolution.org , look for yourself. I hope you join the cause. If not for yourself, then for this country’s next generation.