Our National Deficit
Our country is facing very real financial challenges. The national deficit stands at over $18 trillion dollars. This high level of debt was created for several reasons, including the sharp drop in revenue over the past decade due to tax cuts enacted in 2001 and 2003, our recent economic downturn, the increased expenditures on security and defense in the aftermath of 9/11, and the growing number of Americans who are retiring and accessing services that protect seniors, such as Social Security and Medicare. With commonsense budgeting, shared responsibility, and a willingness to compromise, I am confident that our nation can find a way to return to a balanced budget.
As part of the original deal to raise the debt ceiling during the summer of 2011, Congress agreed to make $2.1 trillion in cuts over the next decade. Over $900 billion of these cuts were agreed to in the debt-ceiling bill but the remaining $1.2 trillion in cuts were still on the table. The bill required that if a deal could not be reached by March 1, 2013 then an automatic cut – or “sequestration” – of $110 billion would be split between national security and domestic programs per year through 2022.
Programs like Social Security, Medicaid, veterans’ benefits, and pay for service members are exempt from sequestration cuts. However, the rest of the federal budget, including the remainder of the defense budget, education, and transportation, are experiencing sharp cuts and will continue to until Congress acts to reverse these cuts and create a plan to address our national debt.
Sequestration was suggested as a tool to force lawmakers to negotiate and find a compromise on debt reduction that both parties could support. It was not meant to be an effective or appropriate way to manage government expenditures. That is why I do not support sequestration. It is far more effective to cut out unnecessary waste and eliminate redundant programs than take a hatchet and cut hundreds of billions of dollars to essential services.
Unfortunately, until both chambers of Congress are able to find a compromise, sequestration will continue to have a devastating effect on our district, our state, and the country. In June of this year, Republicans in Congress attempted to side step defense spending cuts through budgetary tricks to negate the harmful effects of sequestration cuts. I do not support this approach. Congress needs to address current sequestration spending levels as a whole, rather than on an agency by agency basis.
Every year it seems that the U.S. tax code becomes longer and more complicated. I am a supporter of comprehensive tax reform and believe that reform should aim to simplify the tax code, promote savings, and give equal treatment to wages at the individual level. As a former small business manager, I believe businesses should also see benefits in tax reform solutions.
When comprehensive tax reform proposals are brought to the table, we must work to ensure that the result does not contain the same or worse flaws as the existing system or place new burdens on America's working families or businesses.
Small Business Incentives
Small businesses are the driving engine of economic growth and job creation in our nation. The Small Business Administration (SBA) reports that there are over 27.9 million small businesses in the United States, accounting for over half of all U.S. sales. It is absolutely critical that we continue to encourage and assist small businesses through access to easy credit, tax incentives, training programs, procurement, and more. I have supported initiatives like these and will continue to do so to ensure that small businesses have the tools and resources they need to develop and grow.
More on Budget/Taxes
Washington, DC – Yesterday, the Congressional Budget Office (CBO) released its findings on the financial impact of the Senate’s Gang of Eight immigration reform bill.
The CBO reported that S. 744, the Border Security, Economic Opportunity, and Immigration Modernization Act, would reduce the federal deficit by a net of $197 billion over the first ten years of implementation. In the second decade, it projects an additional $690 billion in deficit reduction.
Washington, DC – In response to the FY 2014 budget introduced by President Obama today, Congressman Gene Green released the following statement:
Washington, DC – In response to the budget introduced by House Republicans, which cuts funding to vital domestic programs, jeopardizes Medicare, and eliminates the most beneficial elements of the Affordable Care Act, Congressman Green released the following statement:
Washington, DC – Today, U.S. Representatives Gene Green (D-Texas) and K. Michael Conaway (R-Texas) reintroduced the bipartisan Local Radio Freedom Act (H. Con. Res. 16), which would oppose any new fees, taxes or royalties for music played on local radio stations. The resolution has 71 additional original cosponsors.
Washington – Following President Obama’s State of the Union address on the evening of February 12, 2013, Congressman Gene Green (D-TX) issued the following statement in response:
Washington, DC – Congressman Gene Green offered the following statement on Tuesday evening’s vote on H.R. 8, the American Taxpayer Relief Act of 2012, which addressed the fiscal cliff.
Washington, D.C. – Congressman Gene Green voted against the GOP’s “Middle Class Tax Relief and Job Creation Act of 2011,” H.R. 3630, which was ultimately passed in the House by a measure of 234-193 on December 13, 2011.
Along with much of the nation, I was disappointed to see that the congressional supercommittee's deliberations did not result in a deficit reduction plan. As a result, automatic cuts will be implemented across all federal government agencies, with 50 percent from defense spending and 50 percent from domestic programs.
Washington, D.C. – Congressman Gene Green released the following statement on the Balanced Budget Amendment being voted on later today (H.J.Res. 2), which offers little to help the American people and will inevitably cause drastic cuts to Social Security and other essential programs:
Washington, D.C. – Today, Congressman Gene Green led a letter to President Obama in support of the Keystone XL Pipeline Project as a key project of national interest in creating domestic jobs, raising revenue, and securing America’s energy independence. Twenty-one other Democrats also signed on to the letter requesting that the President grant a Presidential Permit to move forward with construction.