Sanford Introduces Penny Plan
WASHINGTON, DC - Yesterday, Representative Mark Sanford introduced H.R. 5572, the One Percent Spending Reduction Act of 2018, better known as the Penny Plan. This bill would balance the budget by cutting one percent of government spending each year over the next five years. A cut of one penny out of every dollar spent is achievable.
Rep. Sanford released the following statement:
“This bill puts the power of compound interest on the side of limited government rather than where it usually rests in growing government. Small growth consistent over time adds to big numbers. In this same light, small cuts to government over time eventually add to big numbers vital to balancing our budget.
“This bill is also about escaping the politics that prevent a balanced budget. Presently, all too many are open to the idea of cutting someone else’s government program as long as theirs is left alone. This phenomenon, when multiplied across the many different interest groups that call on government, effectively prevents government from being limited. Our Founding Fathers envisioned something very different wherein we are all in the boat together. This bill does that in the way that we would all have a hand in balancing our federal budget.
“The idea is simple: for the next five years, cut a single penny from every dollar that the federal government spends, excluding interest payments on the debt. By 2024, the budget would be balanced and would remain balanced by mandating that spending not exceed revenue. The plan’s only mandate is a one-percent cut in spending every year for five years. Limiting spending would be forced as an issue to be dealt with because if the political body didn’t find consensus on where best to limit government, then the one-penny cut would be automatic. Doing so is vital because, just last month, our national debt hit $21 trillion, growing over $11 trillion since 2008.”
Representatives Scott DesJarlais (R-TN), Matt Gaetz (R-FL), Louie Gohmert (R-TX), Paul Gosar (R-AZ), Walter Jones (R-NC), Thomas Massie (R-KY), Mark Meadows (R-NC), and Gary Palmer (R-AL) joined as original cosponsors.
The full text of the House bill can be viewed here.