Sec. 2. Congressional findings and purpose

230 words·~1 min read·/bill/113/s/2495/is/section-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Congress finds the following: The fiscal crisis faced by the Federal Government demands immediate action. The dramatic growth in spending and debt in recent years threatens our economic and national security: Federal spending has grown from 18 percent of GDP in 2001 to over 20 percent of GDP in 2014. Total Federal debt exceeds $17,000,000,000,000 and is projected to increase each year over the next 10 years. Without action, the Federal Government will continue to run massive deficits in the next decade and total Federal debt will rise to $27,000,000,000,000 by 2024.

Interest payments on this debt will soon rise to the point where balancing the budget as a matter of policy is beyond the reach of Congress. Due to recent tax hikes, Federal revenues are scheduled to rise to approximately 18 percent of GDP, inline with the average of about 18 percent of GDP over the past 40 years. Absent reform, the growth of Social Security, Medicare, Medicaid, and other health-related spending will overwhelm all other Federal programs and consume all projected tax revenues.

The purpose of this Act is to address the fiscal crisis by— acting quickly to balance the Federal budget and eliminate the parade of deficits and ballooning interest payments; achieving balance by reducing spending one percent per year until spending equals projected long-term revenues; and reforming entitlement programs to ensure long-term fiscal stability and balance.