The Fiscal Cliff
Congressman Tom McClintock
House Chamber, Washington, D.C. December 12, 2012
Mr. Speaker:
To understand the federal budget mess and the so-called fiscal cliff, it’s important to remember three numbers: 39, 37 and 64.
Thirty nine percent is the combined increase of inflation and population over the last ten years. Thirty nine percent.
Thirty seven percent is the increase in revenues during the same period. That’s despite the recession and tax cuts. Not quite keeping place, but pretty close.
Sixty four is what’s killing us. Sixty four percent is the increase in federal spending in that period. That’s nearly twice the rate of inflation and population over the last ten years.
The spending side of the fiscal cliff is the so-called sequester: automatic cuts in federal spending. To hear some tell it, these cuts will mean the end of western civilization.
Hardly. After a 64 percent increase in expenditures this decade, the sequester doesn’t actually cut spending at all: it… Read More