"The good life is one inspired by love and guided by knowledge."

Saturday, July 30, 2011

The One Cent Solution, The Mack Penny Plan

Congressman Connie Mack, R, from the 14th Congressional District in Florida has introduced The Mack “One Percent Spending Reduction Act of 2011” (H.R. 1848) 

This genius, elegant, beautifully simple plan is one that is not only fiscally sound, but easy to understand. 

From Congressman Mack's website, here is his brief synopsis of the bills key provisions:

One Percent Spending Reduction per Year: The Mack One Percent bill cuts total spending – mandatory and discretionary – by one percent each year for six consecutive fiscal years, beginning in fiscal year 2012.

•FY 2012 – $3.382 trillion*, less one percent => $3.348 trillion cap

•FY 2013 – $3.348 trillion, less one percent => $3.315 trillion cap

•FY 2014 – $3.315 trillion, less one percent => $3.282 trillion cap

•FY 2015 – $3.282 trillion, less one percent => $3.249 trillion cap

•FY 2016 – $3.249 trillion, less one percent => $3.216 trillion cap

•FY 2017 – $3.216 trillion, less one percent => $3.184 trillion cap

Overall Spending Cap in FY 2018: The bill sets an overall spending cap of 18 percent of GDP beginning in fiscal year 2018.

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.

*Congressional Budget Office March 2011 Baseline for Total Outlays minus Net Interest

Furthermore it laws out a clear plan to bring this nation out of economic chaos and to clear fiscal solvency, by paying off our Nation's colossal debt.

In it's purest essence the Mack 1% bill works by subtracting one cent from each federally budgeted dollar. All of those Pennies are then applied to the deficit.  The deduction of that one percent also forces a decrease in the baseline budget of those federal dollars for the following fiscal year.  This amount may sound minuscule but one cent begins to add up when those pennies are taken from a budget of trillions. (For those of you who, like me, are mathematically challenged, it is a savings of 10 Billion dollars for every 1 Trillion dollars spent). The amount left after the penny per dollar deduction is then used to form an automatic cap for the following years budgeting. 

The One Percent Spending Reduction Act of 2011” (H.R. 1848) is a piece of legislation Ben Franklin and Abraham Lincoln would have embraced. 

Imagine what a 2 cent solution would do.  It is easy to see from this bill that indeed a penny saved is a penny earned.

It is doubtful that the Tax and Spend Democrats would ever allow this efficient bill out of committee or support it much less pass it into law.  Should this plan ever pass both houses and reach the Big Deal Loving Champion Spender Obama would he exercise his veto? 
Obama's only solution to this nation's difficulties is throwing trillions of dollars at America's problems.  Obama prefers  to raise taxes and spend money this nation does not have.  No President in this nation's history has squandered more tax dollars on Agenda driven nation breaking programs than Obama.

All of the official information regarding “One Percent Spending Reduction Act of 2011” (H.R. 1848) can be found at the Library of Congress.

Since being introduced on May 11, 2011 the Mack Bill has gained 46 Co-sponsors .

The following Organizations support  H.R.1848, National Taxpayers Union, One Cent Solution, and
Freedom Works .  This list needs to be longer!  If your favorite Conservative Organization does not back this sound and simple plan it is time to urge the Board of Directors to do so support this bill.

It is left to We the People to pressure each of our Representatives and insist that this uncomplicated simple solution is passed by both houses with a VETO proof vote that insures it's passage into law.  We owe massive debt to nations whose politics, governments and ideals are diametrically opposed to our Founding Principles.  I say that owing this debt to nations that do not have our best interest at heart is not only a bad idea, but an untenable position for our Nation.

8/5/2011 To show your support for the One Cent Solution please sign up At the One Cent Solution Action Center that can be found here: http://www.onecentaction.org/

If not now, when will our elected officials, protect this nation with fiscal solvency?


  1. I'd like to see it done with 5% - no sense in letting it drag out too long! Too often these plans stretch out too far to the future (and it gets modified to the public's detriment further down the line).

  2. I'm afraid Scott is right, when you're borrowing 40% of your living expenses one point doesn't do the trick..

    Unless that one penny is a real one, made of copper like the one in the photo. Our dollar has deflated so badly a real copper penny (Pre 1984 not just wheat)) has a three or four cents melt value.