Congressman Jim Costa and Congressman Dennis Cardoza
FourPoint Plan for Budget Reform and Accountability
U.S. Congressmen Cardozaand Costa call for Congress and the President to put in place common sensebudget reforms to pay for Hurricanes Katrina and Rita and to secure ournation's financial future:
- Reform the Faulty Medicare Prescription Drug Plan
Congress can rewrite the President's deeply flawed MedicarePrescription Drug law - preserving the good aspects such as benefits forlow-income seniors, the drug discount cards that seniors have already received,and the benefits for safety net and rural hospitals - and save several hundredbillion dollars in the next ten years.
Savings: $20 billion in FY05; $32.8billion in FY06, $724 billion in FY06-15
- Place a Moratorium on Any New Tax Cuts
The 2005 Budget Resolution included $106 billion in newdeficit-financed tax cuts over the next five years, including $70 billion to beenacted under special "fast-track" reconciliation procedures.
Savings: At least $70 billion
- Issue "Katrina" and "Rita" Bonds
Weare very grateful for the outpouring of charitablegifts to the GulfCoast Region. Investors should also participate by being able to purchase "Katrina" and"Rita" bonds - US Treasury bonds to be sold over the next year toAmerican citizens and companies. These bonds would be sold only to USbuyers and would enable us to reduce our growing dependence on foreign capitalto fund our rebuilding efforts
- Force Government to be Accountable for Runaway Deficits
Our nation is currently facing a fiscal catastrophe thatcould have been avoided. The broken budget process has led to deficits ofhistoric proportions, and these debts have left our nation ill-prepared toabsorb the costs of post-Katrina and Rita reconstruction. To get ournation back on track, we call for the following:
- A bipartisan budget summit between the President and Congress.
- Immediate enactment of the Blue Dog budget process reform plan, which includes such sensible measures as restoration of Pay-As-You-Go or PAYGO limits sothat any new spending must be paid for by cuts in other programs or by new revenues, and a rainy-day fund to prepare for future contingencies.