I received a good reply from Senator Franken (D-MN) to my email, and he covers many issues in his response. I thought I would share it with all of you:
Thank you for contacting me about the federal budget. I appreciate hearing your thoughts on this critical issue to Minnesota and the nation.
I believe we need a balanced, common sense approach to address our budget deficit that cuts spending, closes tax loopholes for big corporations, and asks the wealthiest Americans to pay their fair share. Any cuts we make must be done in a targeted way that preserves critical programs like Social Security and Medicare and fiscally-sound investments in education, research, and infrastructure. Indiscriminately slashing programs with proven economic benefits will have a real impact on Minnesota families and jeopardize our fragile economy.
I've proposed several reforms that will significantly bring down our long-term deficits. First, we should allow the federal government to negotiate prices with drug companies under Medicare. The Department of Veterans Affairs already negotiates prices, and pays about half as much for the ten most prescribed drugs. This could save taxpayers up to $240 billion over ten years. Likewise, we need to reform our tax code to remove loopholes and special interest tax breaks. This will make our tax system simpler and fairer while at the same time raising much-needed revenue. For example, the oil industry enjoys enormous profits-even as families are suffering at the pump-and yet it still receives huge subsidies and tax breaks. Cutting these giveaways would save $64 billion over ten years. Lastly, when the military says it doesn't need or want something, we should listen. Simply not buying these unneeded items will save us hundreds of billions of dollars.
This spring, disagreements in Congress about the best way to tackle our long-term deficits led to a stalemate over the federal budget. In April, a government shutdown was narrowly avoided when Congress passed a bill to fund the federal government through September 30, 2011. This agreement reduced spending by $38.5 billion from last year's levels. I successfully fought to prevent drastic cuts to programs vitally important to Minnesota families, including job training and home heating assistance. While I disagreed with many of the other cuts, I chose to support the bipartisan measure to prevent a government shutdown.
Congress then began work on next year's budget. On April 15, 2011, the House of Representatives passed its 2012 budget proposal, which came to be known as the "Ryan plan." Its unprecedented and reckless approach would endanger our economy, cut Social Security benefits, and end Medicare as we know it, doubling seniors' out-of-pocket health care costs. It would cut Pell Grants, making college less affordable for Minnesota families already facing high tuition costs. And at a time when job creation should be our number one priority, the Ryan Plan would slash funding for job training, research, and transportation. These are cuts we simply cannot afford to make. That's why I joined 56 of my Senate colleagues in voting down this legislation.
As you know, Congress was most recently gridlocked over whether to raise the federal debt limit. To be clear, raising the debt limit does not allow Congress to spend additional money, it simply allows the Treasury to pay the bills that we already owe. Since 1962, Congress has voted to raise the debt limit 74 times under both parties. Failing to increase the debt limit would put our country at risk of defaulting for the first time in history, leading to higher interest rates for Minnesotans on credit cards, mortgages, car loans, and student loans. And nearly all economists warned that it would have caused a global economic catastrophe.
On August 2, 2011, only hours before the deadline, Congress passed a bill to raise the debt limit and cut spending by $2.1 trillion. It also directed a bipartisan committee to find an additional $1.5 trillion in cuts that would get a straight up or down vote. If the committee's recommendations fail to pass Congress by December 23, 2011, $1.2 trillion in automatic cuts will be triggered.
I am deeply relieved that a compromise was reached. But this deal was not the balanced, common sense approach that I and most Minnesotans believe is necessary. While it makes a sizable down payment on reducing our nation's deficits and debt, it asks nothing of those most fortunate Americans who can afford to pay their fair share. We simply won't be able to get our fiscal house in order without additional spending cuts, revenue, and job creation.
We grew our way out of the much worse deficits we faced following World War II, leading to one of the most prosperous periods in our nation's history. I strongly believe that Congress must take up measures to create jobs, put people back to work, and expand our economy. That's why I'll continue to push for investments in innovation, infrastructure, and our workforce, and will work to ensure our children get a world-class education so they are prepared for a 21st century economy. Together with thoughtful spending cuts, these targeted investments are critical to putting our nation back on the path to prosperity.
Thank you again for contacting me, and please don't hesitate to do so in the future regarding this or any other matter of concern to you.