CONGRESSMAN PETERSON: "THERE IS NO 'BUDGET SURPLUS'"
WASHINGTON, DC Probably the worst thing that happened in Washington DC this year is that people started to talk about a "budget surplus", as though talking about it makes it so. This is like a fellow with a big credit card debt who gets a raise in his paycheck and starts talking about having extra money -- it isn't so.
Washington likes good news more than fiscal responsibility, and several recent economic projections are making the politicians and the lobbyists smile. When that happens, the public should beware.
People need to know that there is NO surplus in the general fund of federal budget. Anyone who tells you that there is selling something.
Furthermore, what ever happened to the national debt? We still have a national debt in excess of five trillion -- $5,000,000,000,000 -- and it isn't going to go away just because the latest economic projection says it will. Minnesotans in the 7th District know that you make your debts go away by paying them, and that it takes time and commitment to do this.
Unfortunately for the country, Congress is perpetuating the myth that there is "extra money", and many Republicans and Democrats have returned to their well-worn arguments about "cutting taxes" or "protecting programs." The conservative "Blue Dog" Coalition is trying to change this debate, and as part of that effort we have produced an alternative position which we hope the leaders in Congress will consider.
Paying down the national debt should be our first priority. IF a real surplus does actually materialize, we think that the first half -- 50% -- should go immediately to paying down the debt. In our opinion, this is the most important thing we can do for the continued economic health of our country, and to secure a bright future for this nation.
The remainder of any "surplus money" -- if it actually materializes -- should be divided equally between keeping our promises to veterans, improving health care, and improving education, and pragmatically reducing the federal tax burden so as to create economic growth and opportunity.
We have a long standing responsibility to honor and pay our debts, and that is what we "Blue Dogs" are telling the leadership in Congress. We have a chance to turn back the tide of red ink that has been running all over the federal budget for decades, and we can't afford to throw it away. After years and years of fiscal irresponsibility, Congress should restrain itself, act responsibly, set partisanship aside, and control the "urge to splurge", because there is NO surplus.
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