Q: What’s in store for the federal budget?
A: It’s a New Year. Congress soon will get down to the business of drafting a new budget blueprint for the upcoming fiscal year. It would be nice if we could turn a new leaf in Washington. But year after year lawmakers lock horns over taxes and spending. After four years of budget surpluses, the federal government revisited red ink starting in fiscal year 2002. America’s response to the 9/11 terrorist attacks in 2001 resulted in major new spending for homeland security. And our ongoing responsibilities in Afghanistan and Iraq continue to require enough funding that fulfills our military and national security interests. Last year the deficit dropped by $94 billion. But now it appears deficit spending may crest above $400 billion largely due to hurricane relief and recovery efforts for America’s Gulf Coast. From my senior position on the Senate Budget Committee, I help write the federal government’s annual budget. My long-held philosophy remains rooted in fiscal conservatism. That’s why I’ll be working to restore fiscal discipline by tightening Uncle Sam’s belt. Some lawmakers would like to tax our way out of the deficit. That’s one sure-fire way to paint this town red for good. Instead of unleashing economic growth that ultimately results in more revenue flowing into the Federal Treasury, higher taxes would put a tight leash on America’s economic engine, global competitiveness and consumer spending.
Q: What is the Deficit Reduction Act of 2005?
A: The Senate adopted a modest deficit reduction bill in December. We took aim at curbing waste, fraud and abuse in Medicare and Medicaid. But even these common sense reforms aimed at improving payment integrity and better accounting for Medicare and Medicaid dollars (including restructuring asset transfers to make it harder for better off Americans to get the taxpayers to pay for their long-term care bills) met with partisan resistance. Some lawmakers irresponsibly choose to ignore the substantial cash flow problems facing Social Security, Medicare and Medicaid. It is reckless not to address the fiscal facts. The oldest baby boomers will turn 60 years old in 2006. Reform of America’s entitlement systems is one of the most important challenges facing Congress. Considering that it took fighting tooth and nail to get the Deficit Reduction Act through the Senate, I’m wondering what it’s going to take to get Washington fired up about tackling necessary entitlement reform. I certainly don’t like the idea of $400 billion deficits. But let me make it clear to those who continue to stonewall on restructuring entitlement spending. We’ve only seen the tip of the iceberg. It doesn’t take a crystal ball to tell what’s in store either. Without substantive reform, a crimson tide will drown the federal budget once baby boomers reach retirement. And that would put their retirement benefits in jeopardy and place an unfair burden on future generations of Americans.