[Congressional Record (Bound Edition), Volume 153 (2007), Part 1]
[Extensions of Remarks]
[Pages 1175-1176]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    SUPPORT FOR THE SAFE COMMISSION

                                 ______
                                 

                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                        Friday, January 12, 2007

  Mr. WOLF. Madam Speaker, I am planning to reintroduced legislation in 
the House of Representatives aimed at addressing the looming financial 
crisis facing the Nation, the Securing America's Future Economy, SAFE, 
Commission Act. The bill would establish a national bipartisan 
commission that will put everything--entitlement spending as well as 
all other Federal programs and our Nation's tax policies--on the table 
and require Congress to vote up or down on its recommendations in their 
entirety, similar to the process set in 1988 to close military bases. 
Mandating congressional action on the panel's recommendations is what 
differentiates this commission from previous ones.
  Support for the bill is coming from both sides of the aisle. I submit 
for the record an analysis by the Heritage Foundation and a letter of 
support from the Concord Coalition.
  This legislation will be good for the future of America.


                                      The Heritage Foundation,

                                    Washington, DC, July 14, 2006.

 The Wolf SAFE Commission Act: A Chance To Get the Budget Back on Track

                           (By Stuart Butler)

       The recent Mid-Session Review by the Office of Management 
     and Budget underscores the facts that sensible tax reform 
     stimulates the economy and that faster growth swells revenue 
     to the government as a byproduct of new jobs and extra income 
     for Americans. The review also confirms the overall, 
     disturbing long-term budget picture indicated in the 
     Congressional Budget Office's (CBO) long-term forecast. Under 
     current law, both taxes and spending will rise rapidly during 
     future decades towards European levels, with an ever-growing 
     government taking a larger and larger proportion of the 
     nation's income and threatening America's future economic 
     growth. Decisive action is needed.
       But faced with this threat, Washington is paralyzed. Rather 
     than seriously tackling the tsunami of entitlement spending 
     that will hit the budget after the baby boomers begin to 
     retire, Congress actually made the situation far worse by 
     enacting the huge Medicare prescription drug benefit. And 
     while the Bush tax reforms have significantly helped in the 
     short term, even if made permanent they would shave only 
     about one percentage point from the future growth in taxes. 
     Absent any additional reforms, the CBO forecasts that, with 
     the Bush tax cuts extended, federal taxes will top 20 percent 
     of GDP by about 2025 and approach 23 percent of GDP by 2045. 
     The historical average, and today's level, is just over 18 
     percent of GDP
       With Congress polarized and paralyzed, some Members of 
     Congress, along with President Bush, are exploring the idea 
     of a bipartisan commission as a way to break away from the 
     path of rapidly rising spending and taxes. President Bush 
     pressed for an entitlements commission in his State of the 
     Union address. Senator Judd Gregg (R-NH) has sponsored 
     legislation (S. 3521) that includes a commission to review 
     the long-term solvency of Social Security and Medicare. 
     Meanwhile, Representative Frank Wolf (R-VA) has crafted a 
     commission bill (``The SAFE Commission Act,'' H.R. 5552) 
     specifically intended to win bipartisan support for bold 
     action to secure the country's fiscal and economic future. 
     Senator George Voinovich (R-OH) has introduced that bill in 
     the Senate (S. 3491).
       Commissions can help break a political logjam. They can 
     also become vehicles for action that achieves a short-term 
     political fix and yet does little in the long term or even 
     makes things worse. So the political dynamics and mandate of 
     a commission are critical. Fortunately, the Wolf commission 
     bill recognizes these facts of political life and offers real 
     hope for sensible action. A reason for this is that in its 
     instructions to the commission, the bill wisely combines 
     reform with fiscal changes in a manner that could achieve a 
     breakthrough.
       The core of the fiscal problem is the sharp projected rise 
     in future entitlement spending, especially spending on 
     programs for middle-class retirees. Contrary to many people's 
     perception, taxes are not falling--as noted, taxes are 
     projected to rise steadily to record levels under current 
     law, in real terms and as a percentage of GDP. Still, in 
     today's political deadlock many lawmakers maintain that tax 
     revenue must be part of the equation if they are to have the 
     political ``cover'' to accept curbs on popular entitlements.
       But for good reasons, conservatives strongly resist the 
     idea of raising taxes. For one thing, taxes are not the 
     problem--spending is. Moreover, raising tax rates or 
     instituting new taxes would threaten economic growth, 
     compounding the economic harm associated with government 
     spending. Further, raising taxes likely would reduce the 
     pressure on Congress to curb spending or, worse still, 
     encourage lawmakers to increase their spending promises.
       The Wolf bill seeks a solution to this political equation. 
     It creates a bipartisan commission intended to address the 
     unsustainable imbalance between federal commitments and 
     revenues while increasing national savings and making the 
     budget process give greater emphasis to long-term fiscal 
     issues. While the commission could consider a range of 
     approaches, the bill places emphasis on two: reforms that 
     would limit the growth of entitlements while strengthening 
     the safety net and tax reforms that would make the tax system 
     more economically efficient and improve economic growth. The 
     commission would hold public hearings around the country to 
     discuss the long-term fiscal problem, and its recommendations 
     would receive fast-track consideration by Congress.
       By combining a slowdown in entitlement spending with 
     reforms to strengthen assistance to the needy, a commission 
     proposal could win support of liberals and others who worry 
     that surging middle-class retiree spending in the future will 
     crowd out safety net spending. And by placing an emphasis on 
     pro-growth tax reform, a commission proposal could also lead 
     to some additional revenues not by raising taxes but thanks 
     instead to faster economic growth--just as the Bush tax 
     reforms produced the recent sharp increase in federal 
     revenues. Combining these features in a commission proposal 
     could lead to a package that conservatives, liberals, and 
     moderates all believe would advance their agendas--a 
     necessary result for an economically sound agreement to 
     succeed in a polarized Congress.
       Some might argue that appointing a commission to address 
     the long-term fiscal situation is an abrogation of 
     responsibility by Congress. In an obvious sense, it is. But 
     the Wolf bill also shows that lawmakers recognize that 
     America's budgeting system is broken and in the current 
     environment cannot lead to a responsible long-term federal 
     budget. Representative Wolf's commission proposal seeks to 
     alter those destructive dynamics in order to secure a sound 
     economy for future generations.
                                  ____



                                       The Concorde Coalition,

                                     Arlington, VA, June 28, 2006.
     Hon. Frank Wolf,
     House of Representatives,
     Washington, DC.
       Dear Mr. Wolf: On behalf of The Concord Coalition, I am 
     writing to express our deep appreciation for your leadership 
     in sponsoring the Securing America's Future Economy, SAFE, 
     Act, which would establish a bipartisan commission to 
     recommend legislation addressing our Nation's unsustainable 
     long-term fiscal outlook.
       We strongly agree with you that the need for serious action 
     is not just an economic imperative but a moral one as well. 
     We also share your view that partisan divisions in Washington 
     have become so wide that a commission may now be the only way 
     forward on this issue. By establishing a fiscal policy 
     commission with a broad mandate, meaningful public 
     engagement, and the ability to consider all policy options, 
     your legislation represents a very constructive step toward 
     bringing about consensus solutions.
       The demographic and fiscal challenges facing the budget in 
     the years ahead are well known. Analysts of diverse 
     ideological perspectives and nonpartisan officials at the 
     Congressional Budget Office (CBO) and the Government 
     Accountability Office (GAO) have all warned that current 
     fiscal policy is unsustainable over the long-term.

[[Page 1176]]

       What is needed now is a clear commitment to address these 
     issues in a straightforward, generationally equitable and 
     bipartisan manner. Achieving consensus around the hard 
     choices that must eventually be made will require open minds 
     and bipartisan cooperation. Your legislation would establish 
     a process to do just that.
       Recently, The Concord Coalition organized a forum with 
     experts from across the political spectrum to discuss the 
     possibility of establishing a bipartisan commission to deal 
     with our longterm fiscal outlook. Three conclusions from the 
     forum stand out:
       The commission must have meaningful participation and input 
     from a broad range of views. Bipartisan support is essential 
     to enacting and maintaining policies that will put the budget 
     on a fiscally sustainable course.
       The commission should have a broad mandate with no 
     limitations on what policy options the commission can 
     consider or preconditions on what must be included--or not 
     included--in a proposal. Everything must be on the table, 
     including revenues as well as entitlements and other 
     spending.
       The commission should engage the public in a dialogue about 
     the long-term fiscal challenges and the tradeoffs that will 
     be necessary to bring about a more secure and sustainable 
     economic future.
       The Concord Coalition commends your proposal because it 
     recognizes each of these conclusions. The SAFE Act would 
     establish a bipartisan commission of experts and legislators 
     appointed by the President and Congressional leaders of both 
     parties. The Commission would be directed to hold hearings 
     across the country and incorporate the input from the public 
     in its report. This is a very welcome provision. The public 
     should be treated as if it were, in effect, a member of the 
     commission. Doing so will enhance the commission's 
     credibility and help build acceptance for its 
     recommendations. Our experience hosting meetings around the 
     nation on this issue has demonstrated that when the American 
     people are armed with the facts and given the opportunity for 
     honest dialogue, they are willing to set priorities and make 
     the hard choices that often are not made in Washington.
       Most importantly, the Commission would be allowed to 
     consider all policy options to address the imbalance between 
     long-term spending commitments and projected revenues, 
     including reforms of entitlement programs and tax laws. In 
     our view, this is an essential prerequisite for attracting 
     well-respected individuals to serve on the commission and for 
     finding solutions that are both substantive and politically 
     viable.
       We particularly commend you for your willingness to 
     consider constructive suggestions for changes to achieve 
     broader bipartisan support and increase the prospect that the 
     commission will produce a balanced proposal that can be 
     enacted into law. In that regard, we would suggest a few 
     changes that we believe would strengthen the bill and help 
     ensure the commission receives the bipartisan support 
     essential to its success.
       We believe the commission would have greater credibility if 
     the appointees were more evenly divided between parties, 
     potentially with some commission members appointed jointly or 
     as a result of bipartisan consultation. Further, we would 
     suggest that the commission have bipartisan co-chairs. We 
     would also encourage you to consider a more expansive 
     legislative process, which would allow for greater debate of 
     policy tradeoffs by allowing the consideration of budget 
     neutral amendments. Those who oppose the priorities and 
     tradeoffs recommended by the commission should be challenged 
     to say what they would do instead and given the opportunity 
     to put forward alternative policies to address the problem.
       A commission isn't a silver bullet that will solve our 
     fiscal problems by itself. It will still take action by 
     Members of Congress and the administration to adopt the tough 
     choices. But a commission with credibility and bipartisan 
     support could provide the leadership necessary to ensure that 
     these issues receive the attention and serious consideration 
     they deserve.
       You deserve great credit for your willingness to undertake 
     the difficult but absolutely essential task of focusing 
     attention on the tough choices our nation faces. The Concord 
     Coalition stands ready to assist in any way that we can.
           Sincerely,
                                                  Robert L. Bixby,
     Executive Director.

                          ____________________