Mark's Stance on the Federal Budget

Fiscal sustainability is critical to meeting our nation’s aspirations and challenges over the long term. However, our national debt is at $22 trillion and growing with no end in sight. The key drivers of our fiscal imbalance are well known: our population is aging, healthcare costs are rising, and revenues are inadequate to fund what we’ve promised. Not only have our leaders failed to address those structural drivers of our debt, but they have also added trillions of dollars to the problem through fiscally irresponsible tax and spending legislation in recent years.

By any measure, we’re on a fiscal trajectory that is unsustainable. According to the non-partisan Congressional Budget Office (“CBO”), debt relative to the size of the economy, (gross domestic product or (“GDP”) is at its highest point since just after World War II and far exceeds historical averages. CBO projects that federal debt will grow from 78% of GDP at the end of 2018 to 147% in 30 years under current law, and to more than 200% under reasonable alternative scenarios, which would significantly harm our economy. The additional borrowing resulting from rising structural deficits will push up federal interest costs, which are already the fastest-growing component of the budget. The rapid growth of interest payments threatens to crowd out investments in our future, such as education, infrastructure, and research and development; it also reduces resources available for programs that protect the most vulnerable Americans, who could face sudden, sharp reductions in benefits.

The American taxpayers are spending $1 billion per day on interest payments on the debt. We spend nearly as much or more on net interest costs than we do in other essential areas such as Medicaid or Income Security Programs. This cannot continue.

Therefore, what would #TEAMYANCEY do to reconcile:

  • Grow the economy at a much faster pace than the outlays. Tax receipts will swell and generate a budget surplus. This is already happening, but it’s being offset by retiring baby boomers.
  • Boost tax receipts by getting the money where it is – cut most if not all corporate tax loop holes (Amazon & Apple pay little to no corporate tax). Stop squeezing the impoverished majority.
  • Repatriate trillions in corporate dollars back to the U.S. that is parked in other countries because the money receives better tax treatment. The Federal government would have to strike a “special tax rate” to incentivize companies to bring their profits to the U.S. It’s estimated that Apple has roughly $1tillion in cash parked in other countries – mostly Switzerland.
  • Chop expenditure with entitlement reform.
  • Manage waste and over spending with defense contractors. The F-35 has led to a billion-dollar cost over budget. Military spending is the number one line item on the discretionary part of the federal budget. I support a strong military (I have a kid at West Point), but Congress has to reign in military cost overruns and waste.