Given that the Congressional Budget Office has yet to release its baseline projections for the fiscal year 1987 budget, I cannot, as yet, detail what my budget proposal would look like. In broad stroke, I would offer a plan very similar to the Hollings budget freeze, which I have offered each and every year since 1982.
Basically, I would freeze spending across the board for one year and cap the growth in spending at 3 percent each year thereafter. And I would close some corporate tax loopholes to aid in the deficit-reduction effort as well. Imposing a minimum corporate tax of 5 percent would provide $8 billion towards deficit reduction in 1987, and repealing the investment tax credit would provide another $15 billion. Such revenue increases, combined with the spending freeze, will keep us well within the deficit targets through the life of Gramm-Rudman-Hollings.
Under such a plan, government would not be allowed to grow uncontrollably, yet it would not be savaged by Draconian cuts. No one would lose his or her eligibility or current benefits. There would be no 18 percent cut in defense or 25 percent cut in nondefense programs, which otherwise might happen if Congress and the president could not come to agree on a budget package.
I am not saying my plan will be easy or without pain, but it is workable. With a little sacrifice from all, the programs would remain and future generations would not be left to pay their own bills and ours. Gramm-Rudman-Hollings will have been a success.