Bill of the Month — June 2022: Six Penny Plan

The Taxpayers Protection Alliance’s Bill of the Month for June 2022 is the “Six Penny Plan” budget introduced by Sen. Rand Paul (R-Ky.). This plan is currently the only budget proposal before Congress and would lead to a fully balanced budget for the nation in just five years’ time.

For some background, Sen. Paul introduced a plan in 2017 that would merely have frozen government spending at then-current levels for five years. It would have required zero cuts. Had that plan been adopted, the federal budget would have balanced come this year. However, it was not and the next year, in 2018, Sen. Paul introduced his “Penny Plan” which would require a one percent reduction to balance the budget.

A similar refusal by lawmakers necessitated Sen. Paul’s “Two Pennies Plan” in 2019. Now, the situation surrounding federal spending has deteriorated to the point where it requires a six percent cut over five years to balance the budget.

The “Six Penny Plan” is very straightforward. For five years, Congress must reduce spending from the previous year’s levels by six percent. After that time, spending must remain at those same levels, with minimal allowances for increases. After five years, this will result in a balanced budget. Over ten years, federal spending will have been cut by an astounding $16 trillion compared with current baseline projections.

Lawmakers in Washington desperately need to get a grip on federal spending. Since Sen. Paul first introduced his spending freeze legislation in 2017, Congress has added over $11 trillion to the national debt with its reckless spending. Annual deficits have nearly doubled over that time and interest payments on the debt have increased by 32 percent. The time left to control this runaway spending freight train is running out.

The consequences of Congress’ poor spending habits are all too real for everyday Americans. Levels of inflation have hit 40-year highs, raising the prices of products across the economy. In some areas, there have even been shortages of necessary goods and services. This debt will continue to loom over future generations as well. The time to fix it has long since passed, but every day we wait will make the problem exponentially worse.

The fact that the Six Penny Plan is the only budget proposal that has been introduced this year is a testament both to how seriously Sen. Paul takes this issue and to how unserious so many others in Washington are. Because it is the only standing proposal, it will most assuredly receive a roll call vote. This will be a key opportunity for many to correct the errors they’ve made on the spending front by repairing our nation’s fiscal state.

It is for these reasons – among many others – that TPA is proud to make the “Six Penny Plan” introduced by Sen. Rand Paul, its bill of the month for June 2022.