Representative Scott DesJarlais (TN-04) has signed on as cosponsor of H.R. 1848, the “One Percent Spending Reduction Act,” introduced by Representative Connie Mack (FL-14).  This plan, commonly referred to as the “Mack Penny Plan,” would balance the federal budget in 2019 by eliminating one penny out of every dollar spent for six years and then cap spending at 18% of gross domestic product (GDP) in the 7^th year.  In total, the “Mack Penny Plan” is estimated to save taxpayers around $7.5 trillion over ten years.

“This plan will force the federal government to do something that it should have done a long time ago – prioritize its spending. While the Penny Plan would ensure that we make the real cuts that the American people expect, it also provides flexibility by allowing Congress and the president to identify where those cuts come from as long as they equal 1% of total spending. Wasteful programs could see significant cuts, while programs that run efficiently may not be cut at all,” said Representative Scott DesJarlais.  “Surely, with trillion dollar deficits and rampant waste, fraud and abuse, we can at least cut one percent out of every federal dollar spent? Individuals in Tennessee’s Fourth Congressional District have had to cut much more out of their own budgets and it’s beyond time for Washington to do the same.”     

Key Provisions of the One Percent Spending Reduction Act of 2011:

• Cuts federal spending by 1% each year for 6 years;
• Caps spending at 18% of GDP in the 7th year;
• Balances the federal budget in the 8th year; and
• Saves taxpayers $7.5 trillion over 10 years.

Enforcement of Spending Cuts: The one percent spending cuts would be achieved one of two ways: either 1) Congress and the President work together to enact program reforms and cut federal spending by one percent each year; or 2) If Congress and the President fail to do so, the bill triggers automatic, across-the-board spending cuts to ensure the one percent reduction is realized.

“I’m grateful that Scott has signed on as a cosponsor of this legislation. His strong record of fighting for commonsense fiscal reforms is exactly the type of leadership that we need and I look forward to working with him in moving the Mack Penny Plan through congress,” said Representative Connie Mack. “Clearly his constituents in Tennessee are telling him the same things that mine are in Florida – get Washington’s spending problem under control.”

“There is absolutely no way that we can continue to borrow 40 cents out of every dollar to finance the federal government’s reckless spending binge. This legislation is yet another item in a long list of good ideas that House Republicans have to get our nation’s fiscal house in order. The Democrat’s strategy of taxing and spending has led to nothing but trillion dollar deficits and a downgrade of our credit rating by Moody’s,” noted DesJarlais. “I hope my Democratic colleagues have finally gotten the message that the American people expect them to work with House Republicans in enacting real spending reforms like the One Percent Spending Reduction Act of 2011.”

Click here to see a video of Representative Mack discussing the “Penny Plan” with Sean Hannity.

This bill currently has over 67 co-sponsors (click here to see list) and has a Senate companion bill (S. 1316) that was introduced by Sen. Mike Enzi (R-WY) and enjoys the support of several key Senators.