Cornyn Co-Sponsors Bill To Control Federal Spending

Press Release

Cornyn Co-Sponsors Bill To Control Federal Spending

U.S. Sen. John Cornyn, R-Texas, a member of the Senate Budget Committee, on Tuesday joined several Senate colleagues in introducing legislation to control federal spending, reduce the deficit and curb runaway entitlement spending. The Stop Over-Spending (S.O.S.) Act of 2007 will counter the Democrats' tax-and-spend budget passed last week. The comprehensive package includes a provision by Sen. Cornyn to slow future income tax rate increases.

"This bill takes important steps to control wasteful federal spending, reduce the deficit and protect American taxpayers," Sen. Cornyn said. "Last week, the Senate passed a budget that hits taxpayers with the largest tax hike in history, dramatically increases government spending and does nothing to control entitlement spending. On the other hand, the S.O.S. Act restores fiscal discipline, will create jobs and keep the economy growing. It will also help address the entitlement spending train wreck on the horizon."

The Stop Over-Spending Act includes a provision authored by Sen. Cornyn that would require a super-majority of the Senate, or 60 votes, to pass any legislation that increases income tax rates on taxpayers. Sen. Cornyn fought to include his bipartisan amendment in the 2008 budget. The Senate passed his amendment by a vote of 63-35, but Democrats stripped it out in the conference committee with the House of Representatives—despite unanimous passage of a measure instructing the Senate's negotiators to include it in the final budget.

The S.O.S. bill would require Congress to reduce the growth of "mandatory," or entitlement spending if deficit targets are not met. It would also order across-the-board reductions in discretionary spending if Congress can't meet established spending caps.

The bill's main sponsors are U.S. Sen. Judd Gregg, R-N.H., the Ranking Member of the Senate Budget Committee, and U.S. Sen. Mitch McConnell, R-Ky, the Senate Republican Leader.

Key provisions of the Stop Over-Spending (S.O.S.) Act:

* Reinstates statutory caps on discretionary spending (and the use of burgeoning "emergency" spending), enforceable by an across-the-board cut if Congress fails to adhere to the caps.
* Creates an automatic deficit reduction mechanism to balance the budget by 2012 - mandatory reconciliation procedures to slow the rate of growth for entitlement programs if Congress fails to meet deficit reduction targets.
* Allows a President to target wasteful spending with a line-item veto, ask that it be rescinded, and send it to Congress for expedited consideration (although Congress retains final power of the purse).
* Sets a point of order against new direct spending that is triggered when the Medicare program is projected to become insolvent in seven years or less for two consecutive years. Due to skyrocketing health care costs and an aging population, Medicare is projected to be the first of the large entitlement programs to become insolvent.
* Establishes a bi-partisan commission to study the accountability and efficiency of government programs (in a manner similar to the BRAC Commission).
* Creates a bi-partisan commission to examine and provide solutions to the impending entitlement crisis, as unfunded entitlement obligations now total $69 trillion over 75 years.
* Strengthens and improves the budget resolution and reconciliation processes.

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