Rep. Fattah Calls on Congressional Colleagues to Enact Simpson-Bowles Plan to Slash Deficit and Avoid "Sequester" Budget Cuts

WASHINGTON, Aug. 8, 2012 /PRNewswire-USNewswire/ -- Congressman Chaka Fattah (D-PA), a leader in efforts to balance the federal budget, is calling on fellow legislators to adopt the Simpson-Bowles Commission proposal as the responsible measure to take toward deficit reduction rather than wait for the mandatory budget cuts to go into effect.

Adoption of Simpson-Bowles, Fattah said, is the best way to avoid the looming mandatory federal spending cuts known as the budget sequester. The sequester is a bipartisan agreement earlier in the current Congress for across-the-board reductions to both domestic and defense spending to achieve deficit reduction, to go into effect automatically after Dec. 31.

"…There is very little time remaining for Congress to create and pass a viable alternative. Yet, no alternative is being considered," Fattah wrote in a letter to all House members. "The Simpson-Bowles proposal is the only solution before Congress that has bipartisan support in both chambers of Congress and addresses the fiscal and policy goals that were debated prior to the budget sequester agreement."

Fattah is author of the Debt Free America Act, H.R. 1125, which will eliminate the national debt within a decade by means of a 1 percent fee on most transactions in the U.S. economy except transactions involving personal bank accounts. The DFAA creates the framework for fundamental tax reform, which includes the elimination of the personal income tax.

Fattah said that while he continues to advocate for the Debt Free America Act, he doesn't envision enactment in time to stave off sequester. He said in his letter, "I recognize that Congressional inaction is no longer tenable nor can Congress afford to begin discussions to achieve viable fiscal sustainability anew."

Simpson-Bowles, Fattah pointed out, "will achieve nearly $4 trillion in deficit reduction through 2020 by implementing comprehensive tax reform measures that will broaden the tax base, simplify the tax code, lowering tax rates, and sharply reducing tax expenditures." The plan, he noted, came within three votes of being adopted by the National Commission on Fiscal Responsibility and Reform.

Fattah said that sequestration will have "damaging effects" on the Department of Defense and sharply curtail critical domestic programs.

"Mandated cuts in education spending alone (under the sequester plan) will severely curtail the federal government's ability to help pay for the costs of educating students with disabilities, turning around failing schools, advancing education reforms designed to help students compete globally, supporting the students of military families, providing work-study jobs for postsecondary students, or helping parents pay for college," Fattah said. "Reductions in health care related spending will result in 659,476 fewer people being tested for HIV, 48,845 fewer women would be screened for cancer, and 211,958 fewer children would be vaccinated."

"There is no question the nation must begin to make some hard choices now. If the federal government fails to act, inflationary pressures triggered by staggering debt will create economic conditions unlike anything ever experienced in the history of this country, including the Great Depression," Fattah wrote. "We must solve the crisis of the moment, but must lay the groundwork to grow even stronger as a nation. We must do more to continue to our prominence as the world's largest economy, the world's wealthiest nation, the world's most powerful military, and the leader in advancing technological innovation."

Text of Congressman Chaka Fattah's "Dear Colleague Letter" follows:

August 7, 2012

Congress Must Avoid the Fiscal Cliff

Enact the Budget Proposal Endorsed

By the Simpson-Bowles Commission

Dear Colleague:

There is a great deal of anxiety being voiced by Congress about the impending budget sequester that will impose mandatory across-the-board spending reductions for the federal budget to achieve deficit reduction. Although there is a considerable amount of attention that currently focuses on the potentially damaging effects sequestration will have on the Department of Defense and its ability to address national security concerns as well as maintaining the current levels of military readiness, there are a number of non-defense, discretionary spending programs that will be significantly impacted if the sequestration is allowed to proceed.

Mandated cuts in education spending alone will severely curtail the federal government's ability to help pay for the costs of educating students with disabilities, turning around failing schools, advancing education reforms designed to help students compete globally, supporting the students of military families, providing work-study jobs for postsecondary students, or helping parents pay for college. Reductions in health care related spending will result in 659,476 fewer people being tested for HIV, 48,845 fewer women would be screened for cancer, and 211,958 fewer children would be vaccinated.

The implementation date for the budget sequester is rapidly approaching. Given that there are very few scheduled legislative days remaining on the legislative calendar, there is very little time remaining for Congress to create and pass a viable alternative. Yet, no alternative is being considered. Simply repealing the budget sequester without a viable alternative is as irresponsible as allowing the scheduled cuts to occur. Congress must advance a credible solution that has bipartisan support.

The Simpson-Bowles proposal is the only solution before Congress that has bipartisan support in both chambers of Congress and addresses the fiscal and policy goals that were debated prior to the budget sequester agreement. The proposal will achieve nearly $4 trillion in deficit reduction through 2020 by implementing comprehensive tax reform measures that will broaden the tax base, simplify the tax code, lowering tax rates, and sharply reducing tax expenditures. In addition, the proposal will create new budget enforcement mechanisms that will scrutinize both security and non-security spending, cut or eliminate low-priority programs, and streamline government operations.

Although my proposal, H.R. 1125, the Debt Free America Act, will eliminate the national debt within a decade while creating the framework for fundamental tax reform, which includes the elimination of the personal income tax, I recognize that Congressional inaction is no longer tenable nor can Congress afford to begin discussions to achieve viable fiscal sustainability anew. Accordingly, I supported the recommendations that were generated from President Obama's National Commission on Fiscal Responsibility and Reform. In addition, I spoke in favor the Simpson-Bowles recommendations on the House Floor, as well as voting for Rep. Jim Cooper's amendment to the budget resolution that adopted the Simpson-Bowles proposal.

The Simpson-Bowles proposal was nearly adopted by the National Commission on Fiscal Responsibility and Reform, gaining 11 out of the 14 necessary votes for adoption. In addition, the proposal enjoys broad bipartisan support from organizations such as the Committee for a Responsible Federal Budget. There is no question the nation must begin to make some hard choices now. If the federal government fails to act, inflationary pressures triggered by staggering debt will create economic conditions unlike anything ever experienced in the history of this country, including the Great Depression.

We must solve the crisis of the moment, but must lay the groundwork to grow even stronger as a nation. We must do more to continue to our prominence as the world's largest economy, the world's wealthiest nation, the world's most powerful military, and the leader in advancing technological innovation.

Very truly yours,

Chaka Fattah

Member of Congress

SOURCE Office of Congressman Chaka Fattah