That’s about 12.5 percent of our total economy. “The study came back saying it cost $1.75 trillion a year just to comply with all the federal rules and regulations and tax code. “President Obama had the SBA (Small Business Administration) commission a study that looked at what it cost for businesses to comply with regulations,” Johnson said. The act is designed to put the brakes on regulations that drive up costs for employers. In 2009, that spiked up to 25 percent it’s a little below that now, but the cost of federal government is on a path up to 40 percent of the GDP.īecause of that, Johnson introduced the Regulation Moratorium and Job Preservation Act. He said over the last 50 years federal expenditures have averaged a little more than 20 percent of the gross domestic product. The root cause of out-of-control government spending is it has gotten so large, Johnson said. He said while the deficit was difficult to fix in Wisconsin, he said the federal deficit is ten times worse to deal with and there are no spending controls in place. “The fact is most states operate with a balance budget amendment certainly Wisconsin does,” Johnson said. “We weren’t going to let that happen,” Johnson said. And finally, he said, the goal was for the House of Representatives and Senate to raise the debt ceiling only after passing a constitutional amendment and send it out to the states to consider, but no one was willing to risk default he said. A cap on federal spending would have limited growth based on the nation’s gross domestic product. Johnson said bona fide cuts are just the first step. I think that’s an important distinction … we’re trying to limit its growth.” “It’s continuing to grow … we’re not actually talking about cutting. “Our total budget is not declining,” Johnson said. The only actual cuts that were made were to discretionary accounts, about $10 billion in total over the next two years, he said. wasn’t about cutting federal spending it was about reducing the rate of growth. Johnson said the recent debate in Washington D.C. “Then you’ve locked in structural spending reductions.”
“Until you cut spending - actually cut, like real cuts from the previous year, like $100 billion, I think that’s the only way you cut close to $1 trillion over 10 years, because you can actually lower the baseline,” Johnson said.
#Superior telegram how to
While the house and senate were debating how to come to an agreement that would allow both legislative bodies to come to an agreement on spending limits to raise the nation’s debt ceiling, Johnson made a plea to fellow senators to consider adopting Cut, Cap and Balance - a legislative proposal that went nowhere in the debate. “I don’t think you’re going to find the political will to actually do the spending controls - prioritize spending, reform the entitlement programs - first of all, until we have a statutory requirement to do so, and in the end, I think you need a constitutional amendment.” “I’ve always thought this was going to be a two step process,” Johnson said of balancing the budget. Johnson stopped at the Superior Telegram a week ago to discuss the state of the economy, his a proposal he put forth a moratorium on new regulations until jobs are created and unemployment drops, and what it’s going to take to balance the federal budget. Ron Johnson, the Oshkosh Republican who defeated former Wisconsin Sen. doesn’t have an ideology problem it has a math problem.
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