Senator Johnson Outlines Plan for Economic Recovery

Statement

In the Washington Times this week, I outlined my plan for economic recovery. Since taking office in admittedly tough economic conditions, the president has taken America 180 degrees in the wrong direction. His failed $825-billion stimulus, Obamacare, Dodd-Frank and the explosion of his administration's other job-killing regulations have combined to put a stranglehold on our economy. Until these policies are reversed, the lack of confidence that dampens consumption, business investment and job creation will be the order of the day. Unfortunately, Mr. Obama is blinded by ideology and refuses to acknowledge the harm his agenda has wreaked on America and our economic future. Fortunately, some in Congress understand the harm his agenda is causing and are working hard to reverse course.

As the former chief executive officer of a midsized manufacturing business, I do understand the value of the real job producers in America. I also understand how Mr. Obama's policies affect their ability to expand their businesses and create new jobs. What we need to do to get our economy moving again is pretty obvious. Here's a short outline of the necessary components of a solution:

c Repeal Obamacare and Dodd-Frank: Neither of these laws fixed the problems they were designed to solve, and instead, they do far more harm than good.

c Regulation moratorium: The $1.75-trillion-per-year regulatory burden is making the United States a very unattractive place for global business investment. Imposing a moratorium on new regulations is a necessary first step in reversing the damage. A bill I introduced last month would do just that.

c Credible plan to control spending: The elements of the "Cut, Cap and Balance" plan had the support of 66 percent to 74 percent of the American people. Once consumers and investors are convinced we have spending under control, confidence will return to our economy.

c Tax reform: Our 70,000-page tax code costs taxpayers more than $300 billion in annual compliance costs to raise $2.2 trillion in revenue. It is riddled with special treatments that result in less efficient economic behavior. Reforms should make the system more streamlined in a way that promotes rather than harms economic growth.

c Budget reform: I will work with House members to pass legislation that will:

1. Replace "base-line" budgeting with "zero-based" budgeting.

2. Require Congress and the administration to make all entitlements structurally solvent for 75 years by fiscal 2014.

3. Require all spending to be authorized regularly by Congress. (Currently, 70 percent of the budget is on automatic pilot.)

4. Replace the annual budget process with a biennial budget process that authorizes spending in Year 1 and conducts spending oversight in Year 2.

c Civil service hiring freeze: Controlling the size of the federal work force would be a powerful tool in limiting the size, scope and cost of government.

c Energy security: The United States should protect our national security and help ensure price competition by fully utilizing our own natural energy resources.

c Congressional "sunset" committees: Both the House and Senate should have permanent committees whose only focus would be on the elimination of unneeded laws and regulations. More often than not, government has become part of the problem instead of the solution.

I am willing and eager to work with anyone who is serious about addressing the long-term fiscal crisis facing our nation. Hopefully, Mr. Obama will begin to realize the harm his agenda has caused and work with Congress to reverse course quickly.

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