Eliminate the federal budget deficit, which is expected to reach nearly $600 billion in 2016
Reform entitlement programs, including Social Security, Medicare, and Medicaid, to ensure long-term sustainability and financial security for the most vulnerable Americans
Unless we reprogram government spending and entitlement programs, the federal budget deficit will continue to grow. The Congressional Budget Office (“CBO”) estimates that the deficit – the difference between how much revenue the government collects and how much money the government spends – will reach $590 billion this year.
Americans cannot spend more money than they make, but the federal government has made living on credit of the status quo. In 2011, I proposed a seven-point plan to reform Social Security that would achieve permanent annual balance by 2051 and ensure trust fund solvency without huge tax increases.
By the Numbers:
How much is $1 trillion? If you spent $1 million a day every day, it would take you nearly 3,000 years to spend $1 trillion.
In 2015, the federal government collected $3.25 trillion in revenue while federal expenditures were $3.69 trillion. This created a budget deficit of $438 billion for fiscal year 2015.
In 2016, projected federal revenue will increase slightly to $3.28 trillion, while federal expenditures are expected to rise to $3.87 trillion. This will result in a budget deficit of $590 billion for fiscal year 2016.
The CBO projects that the budget deficit will continue to increase for the next ten years, reaching $1.24 trillion by 2026.
Approximately 82% of the increase in outlays between 2016 and 2026 is attributable to Social Security, Medicare and health care programs, and net interest spending.
Mandatory spending for 2016, which includes outlays for Social Security, Medicare, and Medicaid, will rise to $2.4 trillion for 2016, an increase of $136 billion over 2015.
Discretionary spending for 2016, which includes outlays for defense, Pell grants, and federal housing subsidies, will rise to $602 billion in 2016, an increase of $18 billion over 2015.
Interest payments made by the federal government on debt held by the public will increase to $248 billion in 2016, an increase of $25 billion over 2015.
Total expenditures are projected to reach 23% of total Gross Domestic Product (“GDP”) by 2026.
H.R. 3762 – Restoring Americans’ Healthcare Freedom Reconciliation Act – Voted in favor of this bill, which passed the House and would repeal major provisions of the Affordable Care Act and would cut the deficit by $516 billion over ten years.
H.R. 1314 – Bipartisan Budget Act of 2015 – Voted against this bill, which raised existing spending caps, increased spending authority by $80 billion over 2016-2017, and suspended the federal debt limit until March 2017.