New Jersey Prosperity Project

Liberty and Prosperity

Deficit Reduction: Learn More, Take Action

Our nation’s debt and ongoing deficits are serious threats to our economic well-being and the free enterprise system. As employers and employees of US companies, we all will suffer greatly from our extreme debt problem. Did you know:

  • Right now, 40 percent of all government spending is borrowed money.  That’s $1.4 trillion dollars of taxpayer money every year.  In context, that’s the size of the entire German economy (1.5 trillion)
  • Each additional dollar we borrow makes the cost of all goods and services increase

What Has Been Done?

Over the summer, at the 11th hour, Congress was able to come to terms on a temporary deal raising the US Debt Ceiling and preventing the country from defaulting on some of it's key obligations.  While the compromise prevented the default, it did result in Standard and Poor's cutting the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficit and rising debt burden. The action is likely to eventually raise borrowing costs for the American government, companies and consumers.

The agreement, which was called the Budget Control Act of 2011, also created a Joint Select Committee on Deficit Reduction which is tasked with putting forth additional legislative proposals in November of 2011 to reduce the national debit more substantially. 

On September 19th, President Obama unvieled his fourth package of debit reduction ideas that will also serve as his recommendations to the Joint Select Committee on how to pay for a massive job-creation plan announced earlier in the month.  The Obama plan would:

  • Increase taxes by 1.5 trillion over the next 10 years, mostly on corporations and wealthy Americans. 
  • Include 1.2 trillion in discressionary spending cuts and 580 billion in cuts and reform to manditory programs including social welfare platforms. 
  • Presume 1.1 trillion in savings from winding down the wars in Iraq and Afghanistan

Write to Congress today and urge them to get our nation’s finances in order by reducing the federal deficit! Go to the Take Action portion of this webpage and click on the letter entitled National Debt Reduction.

Additional Resources

Deficit Reduction Facts
Congressman Boehner's Proposal
Senator Reid's Proposal
Gang of Six Plan
President Obama's Framework
National Commission on Fiscal Responsibility and Reform Report