Keeping Our Promise for a Strong Future
August’s Consumer Price Index shows inflation continues to rise. Prices for consumer goods have risen across the board – especially necessities like food and shelter. Unfortunately, inflation shows no sign of easing, and the National Energy Assistance Directors Association anticipates a 17 percent increase in the average household cost for Americans to heat their homes this winter.
Data compiled by the Heritage Foundation shows the average American has lost the equivalent of $4,200 in annual income to inflation since President Biden took office in January of 2021, and Bloomberg has reported 26 million low-income households have had their savings wiped out by inflation since then. Ongoing excessive spending in Washington is causing pain at the pantry, pump, and pocketbook, with middle- and lower-income families disproportionately harmed by it.
This week the Congressional Budget Office projected the president’s unfair student debt transfer scheme will cost American taxpayers $400 billion. This reckless move does nothing to address the high cost of college and will make inflation even worse at a time we can least afford it. This plan is not only inflationary and expensive – at a time when our national debt is already nearly $250,000 per taxpayer – it is also legally dubious. This week, the Biden administration made two changes to the program –an opt-out for borrowers who don’t want to receive loan forgiveness and excluding many bank-held loans from the program –largely designed to limit the standing for potential court challenges to the plan.
To truly get our fiscal house in order, our approach must be two-pronged. Broadly speaking, federal spending falls into two categories, mandatory and discretionary. Mandatory spending refers to federal outlays authorized on a perpetual basis. Mandatory spending does not require annual approval in the form of congressional appropriations. Discretionary spending refers to federal outlays approved by Congress through the appropriations process each year.
While Republicans have been successful in reining in some wasteful discretionary spending, mandatory spending comprises most of the federal budget, at $4.8 trillion each year. While Social Security and Medicare are the two largest drivers of mandatory spending – and must be modernized before their trust funds become insolvent to ensure they meet the needs of future generations – I do not support wholesale cuts to Social Security and Medicare for the sole purpose of deficit reduction. Nearly every federal agency has mandatory spending in its jurisdiction that must be examined. We must also stop the troubling abuse of the tax code to disguise new federal spending such as Obamacare subsidies and monthly child tax credit checks as tax relief.
This week Congress passed a continuing resolution to temporarily fund the government through December 16. I do not support a government shutdown, but I opposed this stopgap measure because passing the buck for another 11 weeks is an irresponsible way to fund the government and makes it impossible to address out-of-control government spending.
Our debt and deficits are serious, generational challenges and will require serious solutions. Instead of working to get spending under control so it doesn’t threaten the prosperity of future generations, our fiscal situation is getting worse under one party rule in Washington. Republicans have a plan to cut spending, fight inflation, and lower the cost of living for hardworking families across the country. We will fight to save and strengthen Social Security and Medicare. This is our commitment to you.
Read more at www.CommitmenttoAmerica.com.