Dear Samuel,
Thank you for taking the time to contact me about the need
for fiscal reform. Your input is important to me, and I appreciate the time you took to share your thoughts.
I am deeply concerned about the dire fiscal situation of
the United States government and the need to reduce spending. Last year alone we added $1.1 trillion
of debt, causing the nation's debt to reach 100% of our GDP. Massive annual deficits are projected for
years to come unless we drastically change the spending habits in Washington. Instead of addressing our
fiscal problems head on, Congress set up a combination of tax increases and sequestration spending cuts
scheduled to occur at the beginning of 2013.
Because
of the seriousness of the situation, I believe that Congress must agree on responsible spending cuts
and tax reforms before the end of the year that provide financial certainty to families and businesses
and maintain adequate funding levels for key programs. We need pro-growth tax reform along with
implementing
a long-term plan to restore solvency to
Medicare and Social Security.
These
changes would dramatically lower the deficit and
get
our economy
really moving again.
Kicking the can down the road — setting up a process
for token deficit reduction today with the promise of more reforms later as some have suggested —
is misguided and irresponsible and shows a total lack of courage. We have had two dry runs over the past
two years – through the Simpson-Bowles Commission in 2010 and the so-called "super committee" in
2011. No Congress is better suited to address our long-term fiscal issues than this one. It is our responsibility
to solve these problems now.
I have shared with House and Senate leaders as well as the
White House a 242-page bill that, along with other agreed-upon cuts that are to be enacted, would produce
$4.5 trillion in fiscal reforms and replace sequestration. While I know this bill can be improved, it
shows clearly that we can do what is necessary, today, with relatively simple legislation.
The proposal includes pro-growth federal tax reform, which
generates more static revenue — mostly from very high-income Americans — by capping federal
deductions at $50,000 without raising tax rates. It mandates common-sense reforms to the federal workforce,
which will help bring its compensation in line with private-sector benefits, and implements a chained
consumer price index across the government, a more accurate indicator of inflation.
It also includes comprehensive Medicare reform that keeps
in place fee-for-service Medicare without capping growth, competing side by side with private options
that seniors can choose instead if they wish. Coupled with gradual age increases within Medicare and
Social Security; the introduction of means testing; increasing premiums ever so slightly for those making
more than $50,000 a year in retirement; and ending a massive "bed tax" gimmick the states use in Medicaid
to bilk the federal government of billions, this reform would put our country on firmer financial footing
and begin to vanquish our long-term deficit.
The challenge Congress and the President face isn't one of
intellect, aptitude, or time; it's a test of political courage. I will do all I can to convince other
elected leaders in Washington to put America on a path to fiscal solvency, unleashing a period of economic
growth, job creation and innovation. I remain hopeful that they will place the issues surrounding the
fiscal cliff firmly in the rear-view mirror so that we can begin next year focusing on those things that
ensure America's greatest days still lie ahead.
Thank you again for your letter. I hope that you will continue
to share your thoughts with me throughout my time serving you in the Senate.
Sincerely,
Bob Corker
United States Senator
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