Showing posts with label Penny Plan. Show all posts
Showing posts with label Penny Plan. Show all posts

Tuesday, May 30, 2023

Thomas Massie of Kentucky voted for the rule advancing the debt ceiling compromise to the House floor because the compromise contains the Penny Plan and a return to regular order

 The Penny Plan would be triggered in the event 12 appropriations bills are not passed by Jan. 1 annually, automatically reducing spending 1% across the board.

Ending the present bad habit of omnibus spending bills is essential to a return to good governance and represents a good reason to vote for this bill despite its shortcomings.

 


Massie followed through with his statement during Tuesday evening’s vote when he supported the rule. He also told reporters that he plans to vote for the bill when it comes to the floor on Wednesday after announcing it in a closed-door GOP conference meeting minutes earlier.

“It’s because it cuts spending,” Massie told The Hill Tuesday night when discussing his intent to support the bill.

“Nothing I’ve ever voted on has ever cut spending that’s passed that’s become law; this will,” he added.

During Tuesday’s Rules Committee hearing, Massie highlighted a provision in the debt limit bill that incentivizes Congress to pass 12 appropriations bills rather than relying on omnibus measures to fund the government. The provision threatens to cut government spending by one percent across the board if the measures are not approved by Jan. 1.

“There is one way in which I think this bill got better, and it is this 1 percent cut that we’re all agreeing to if we vote for this bill, Republicans and Democrat, come Jan. 1. If we haven’t done our homework, and if the Senate hasn’t done their homework, and if the president hasn’t signed those bills — so everybody is gonna be in this, responsible for the outcome,” Massie said.

More.

Friday, August 31, 2012

Can We All Agree Now That Both Sides Intend To Cut The Growth Of Medicare Spending?

We once hoped Paul Ryan was a real spending cutter instead of a spending growth cutter, but is now just a defender of Medicare spending growth, or something.

In other words, you are either going to vote for a Republican Welfare State in Romney/Ryan sans ObamaCare, or a Democratic Welfare State in Obama/Biden with it, but not for a Fiscally Conservative State, and certainly not for a Limited State. 

The Investor's Business Daily doesn't seem to care that failing to cut the overall size of a program over time, adjusted for inflation, means you are not a fiscal conservative, here:


Media fact-checkers also complained about Ryan's charge that Obama is cutting $716 billion from Medicare to fund ObamaCare. Not true, they said. Medicare's growth is just being slowed.

But Obama achieves that slower growth by making real cuts in provider payments. And in any case, the media always and everywhere call a reduction in the rate of federal spending growth a "cut." So why suddenly charge Ryan with being misleading for using that same term?

In any case, Obama himself admitted that he's doing what Ryan says. In a November 2009 interview with ABC News, reporter Jake Tapper said to Obama that "one-third of the funding comes from cuts to Medicare," to which Obama's response was: "Right."

Reducing the size of government is different than reducing how much it grows.

Plans like the Penny Plan -- if they threw out the ever-rising baseline which makes government bigger every year because spending on programs must rise to accommodate increased population -- would work in a fiscally conservative sense because they essentially freeze programs in time and lop-off 1 percent annually until revenues grow enough to balance the budget.

But in no sense can even such a plan be construed as a limited government plan because such plans do not commit to paying off the debt, which by my calculations would take $850 billion annually or so for 30 years at 3.5 percent on top of balanced budgets each and every year over the period. This is how households used to work and no longer do, which is why government no longer does.

A country is only as good as its people. If Americans will not control their own spending, the government which represents them never will.

It begins with us, not with Barack Obama or Paul Ryan.