The co-chairs and members of the Congressional Bipartisan Fiscal Forum (BFF) have introduced a resolution calling on Congress to enact legislation to reduce the federal deficit to three percent of gross domestic product (GDP). A deficit that amounts to about three percent of GDP would be about half of its current (six percent of GDP) level.
H.Res.981 includes a deficit reduction framework to achieve a three percent or less of GDP deficit by 2030. It also outlines potential enforcement measures. The measure is spearheaded by Reps. Bill Huizenga (R-MI) and Scott Peters (D-CA). Additional cosponsors include House Budget Chair Rep. Jodey Arrington (R-TX), and the full Bipartisan Fiscal Forum steering committee.
Prospects: H.Res.981 is unlikely to advance through the legislative process any time soon (if at all). But it is a clear sign of growing concern among lawmakers about the spiraling federal debt. Virtually all lawmakers are concerned about the debt and deficit although ways to address the problem are distinctly partisan. Generally, Republicans want to cut spending to control the red ink, while Democrats want tax increases (especially on “the rich”). At this point, there is little visible interest in compromise on these approaches—but this resolution may signal that Congress may tackle the deficit problem soon (although unlikely prior to the November mid-term elections).
NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.