TPA Responds to Announced Budget Deal, Signs Coalition Letter Urging Preservation of BCA 2011 Spending Caps
TPA President David Williams responds to the Murray-Ryan Budget accord announced on Tuesday evening:
“Washington has yet again failed the American taxpayer by choosing phony spending cuts over fiscal responsibility. The agreement reached tonight between Senate Budget Committee Chairwoman Patty Murray (D-Wash.) and House Budget Committee Chairman Paul Ryan (R-Wisc.) does nothing to address the long-term spending problems that this nation faces. Unfortunately what it does do is create more problems by setting the precedent to increase spending levels previously agreed to in the Budget Control Act of 2011. While millions of Americans look for ways to change their spending habits by tightening their belts, Washington remains clueless and increases spending. It is inexcusable to think that just a few short years after agreeing to long-term spending restraint, deals are being made behind closed doors to break those very agreements. Sequestration wasn’t the ideal solution for anyone but it was the failure of Congress and the President to agree to specific spending cuts that led us to where we are now, and there is no reason to believe that we won’t see repeated attempts to do away with more required cuts down the road.”
This budget announcement by comes shortly after TPA signed onto a letter spearheaded by the Conservative Action Project urging lawmakers to oppose any budget deal that “raises spending levels or increases revenue”
The federal government has a spending problem and federal agencies have shown a particular penchant for spending money in ways that defy explanation. Just this week, we learned that the State Department ran up a $400,000 bar tab. Also, let’s not forget the wasteful spending by the Internal Revenue Service, Department of Homeland Security, and the Transportation Security Administration among others. Payment errors are also a major problem for federal agencies (and taxpayers) and the problem is getting worse. The Government Accountability Office noted that federal agencies reported $115.3 billion in improper payments in fiscal year 2011 alone. This is inexcusable at a time when taxpayers are feeling the burden of a $17 trillion dollar debt and a government in Washington D.C. that seems not all that concerned when it comes to making meaningful spending cuts and trying to do away with structural reform that would reduce spending in the short and long term. With that in mind, TPA was pleased to join an effort led by Americans for Prosperity signing this letter, along with American Commitment, Americans for a Balanced Budget, Americans for Tax Reform, COAST (Coalition Opposed to Additional Spending and Taxes), Concerned Women for America, Cost of Government Center, Generation Opportunity, Less Government, National Center for Public Policy Research, National Taxpayers Union, and the R Street Institute urging Congress to support the Eliminate Preventable Waste Act, sponsored by Congressman Jack Kingston (R-Ga.). The legislation would “require federal agencies to show a reduction in the error rate for payments in federal spending. If the rate of improper payments increases in a given fiscal year, then the administrative budget for the agency will be cut by the same percentage of the error rate.” In a time where debt and deficits continue to plague the country’s finances, this is one step of many that Congress can take to move toward solving an enormous and preventable problem. In a spending atmosphere of difficult decisions to make, getting rid of improper payments should be a relatively easy fix.
Click ‘read more’ below for the full letter
The end of the year is approaching and Congress is doing what it does best: trying to spend your money. This week, under the guise of budget talks and congressional hearings, lawmakers and agency officials appeared to be sounding the alarm on sequestration yet again in an effort to undo the needed spending cuts put in place by the Budget Control Act of 2011. The goal of long-term spending reduction cannot be achieved without maintaining the all-important spending caps agreed to in the BCA 2011 agreement. With that in mind, TPA joined in an effort led by NTU and signed this letter along with Americans for Prosperity, Americans for Tax Reform, Campaign for Liberty, Center for Freedom and Prosperity, Coalition to Reduce Spending, Competitive Enterprise Institute, The Conservative Caucus, Inc., Cost of Government Center, Council for Citizens Against Government Waste, Freedom Action, Generation Opportunity, Hispanic Leadership Fund, Less Government, Log Cabin Republicans, R Street Institute, and Taxpayers for Common Sense urging GOP Conressional leaders to maintain the post-sequester budget caps in order to "preserve the law and protect taxpayers from further government expansion."
With the fiscal cliff last January and the recent shutdown and debt ceiling debacle, the past 9 ½ months have been a model of congressional dysfunction. And, as we have been doing for years, the Taxpayers Protection Alliance has been following developments on the government shutdown debate and the ongoing fiasco of the endless impasse to agree to terms to reopen the federal government. The biggest deadline is quickly approaching, the debt ceiling, a limit set by Congress regarding the amount of money that the government can borrow for public spending. During the Budget Control Act of 2011, part of the deal was to raise the limit to $16.4 trillion, in return for spending cuts (those cuts coming now in the guise of sequestration after the failure of the Super Committee). The United States actually hit the ceiling on December 31, 2012, but “extraordinary measures” were taken by the Treasury Department to enable spending to continue and the debt ceiling is at $16.699 trillion now. The new deadline is set for Thursday, October 17, 2013. Should Congress fail to negotiate a deal that would be signed by the President to lift the debt ceiling, the government would have $30 billion (and cash-on-hand) to continue to spend for services, and payments to creditors; otherwise the US risks default and some early warnings have already come as we inch further towards the deadline. Though that may be a great deal of inside baseball, that is very watered-down and to the point in terms of what is going to happen at midnight tonight.
All Trick No Treat for Taxpayers: Congress Poised to Once Again Chooses Big Government Over Taxpayers
The Taxpayers Protection Alliance (TPA) has been keeping a close eye on the House, Senate, and White House as they have been going back and forth trying to resolve the current impasse that has kept the government closed (or at least slowed down many services) since the fiscal year began on October 1. Now, with the debt ceiling deadline less than 48 hours away and the threat of default a very real possibility, it appears that leadership on both sides of the aisle in Senate have reached a deal that would both extend the debt limit and keep the government open into early 2014. The crisis is by no means over, and it remains to be seen how this will play it out in the House, where many Republicans are wary to accept a clean Senate bill. The uncertainty is still very much a real factor in all of this, but one thing clear: this deal highlights another failure of elected officials to protect taxpayers, and instead is another sign that the era big government is still very much alive. It is also a sign that Congress will continue to budget by crisis and not by common sense and fiscal responsibility. It is almost fitting that this fiscal fiasco plays out in October, a month known for Halloween and scaring people.
Today is the last day of the fiscal year and all the talk has been about a potential government shutdown. The biggest problem with all of the talk of the government shutdown has been the lack of talk about the deficit and debt and the real fiscal problems facing the country. The new fiscal year and the looming deadline of a government shutdown bring about a real opportunity to come up with concrete spending cuts that are not only necessary but also wise. What is most difficult for politicians is to come up with meaningful resolutions to the very real problems the nation is facing. Instead, it seems, they would prefer to engage in brinksmanship all under the guise of protecting the sacred cows they hold dear (entitlements, defense, and subsidies); while working families across America continue to struggle to find ways to manage their own decreasing budgets. This is not only unacceptable, it is untenable and the issues facing the Congress and the White House over the next few weeks need to be dealt with in a substantive way so that there can be a real chance to solve the all-too-real spending problem. During the next fiscal year the Congress must focus on reducing spending considering that the government is wasting billions and there are room for cuts in many areas. With this in mind, no program should go unchecked and every agency should be under the magnifying glass.