[Congressional Record Volume 156, Number 80 (Tuesday, May 25, 2010)]
[House]
[Pages H3753-H3754]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1245
WHY 20 PERCENT OF GDP?
(Mr. PITTS asked and was given permission to address the House for 1
minute.)
Mr. PITTS. Mr. Speaker, in a year when, for the first time in memory,
the Pelosi Congress is failing to adopt a budget, I am proud to
cosponsor a spending limit amendment that would place a cap on Federal
Government spending.
Tax rates go up and down, tax laws change, the economy changes; but
in the past six decades, Federal tax receipts have stayed consistent at
nearly 20 percent of GDP. In a Wall Street Journal op-ed last Monday,
Economist David Ranson explained this effect. He notes: ``The tax base
isn't just something you can kick around at will. It represents a
living economic system that makes its own collective choices.'' In
other words, we can't fight against the natural level of maximum
taxation. If we raise taxes, we won't collect enough to reduce our
deficit, and we will restrain economic growth.
We have been living outside of our means, borrowing and spending and
bailing out for far too long. The Spending Limit Amendment, based on
economic reality, is a sensible measure that will keep our government
in check.
[[Page H3754]]
____________________