Former U.S. Rep. Connie Mack, R-Fla., might be long gone from Congress but his “Penny Plan” lives on.
First elected to the U.S. House in 2004, Mack, the son of former U.S. Sen. Connie Mack, R-Fla., served four terms but failed badly when he challenged U.S. Sen. Bill Nelson, D-Fla., back in 2012. While Florida was up for grabs in that year’s presidential election, Nelson easily squashed Mack’s challenge, routing him 55 percent to 42 percent.
During his time in Congress, Mack was a champion of the “Penny Plan” which he insisted would reduce the size and scope of the federal government and balance the budget over several years.
Mack’s plan would have mandated a 1 percent reduction in federal spending from 2012 until 2017, before imposing a spending cap in 2018. That cap would mandate the total cost of the federal government not to exceed 18 percent of the total Gross Domestic Product. Mack insisted that his proposal would cut $7.5 trillion from the federal government over the course of decade. The measure had backing of a number of prominent Republicans in Congress as well as conservative organizations like the National Taxpayers Union and FreedomWorks.
While Mack’s proposal never went anywhere, U.S. Sen. Rand Paul, R-Ky., who championed the Penny Plan, continues to fight for it and unveiled his version of it last week.
“I ran for office to put a stop to Washington’s out-of-control spending and skyrocketing debt. It’s time for conservatives to govern like conservatives, and my budget plan gives our Republican-controlled Congress a chance to prove to the American people that it is serious about getting our fiscal house in order,” said Paul who backed Mack’s plan and his bid against Nelson in 2012.
Paul’s proposal would cut federal spending 1 percent across the next five years until the budget is balanced.
Over in the House, U.S. Rep. Mark Sanford, R-SC, introduced a bill backing the Penny Plan
“This bill puts the power of compound interest on the side of limited government rather than where it usually rests in growing government. Small growth consistent over time adds to big numbers. In this same light, small cuts to government over time eventually add to big numbers vital to balancing our budget,” Sanford said when he unveiled it last week. “This bill is also about escaping the politics that prevent a balanced budget. Presently, all too many are open to the idea of cutting someone else’s government program as long as theirs is left alone. This phenomenon, when multiplied across the many different interest groups that call on government, effectively prevents government from being limited. Our Founding Fathers envisioned something very different wherein we are all in the boat together. This bill does that in the way that we would all have a hand in balancing our federal budget.
“The idea is simple: for the next five years, cut a single penny from every dollar that the federal government spends, excluding interest payments on the debt,” Sanford added. “By 2024, the budget would be balanced and would remain balanced by mandating that spending not exceed revenue. The plan’s only mandate is a one-percent cut in spending every year for five years. Limiting spending would be forced as an issue to be dealt with because if the political body didn’t find consensus on where best to limit government, then the one-penny cut would be automatic. Doing so is vital because, just last month, our national debt hit $21 trillion, growing over $11 trillion since 2008.”
Sanford’s bill has the support of several House Republican cosponsors including U.S. Rep. Matt Gaetz, R-Fla.
