Senators Judd Gregg (R-N.H.) and Kent Conrad (D-N.D.) have introduced legislation creating a bipartisan task force charged with producing a deficit-cutting plan that would be voted on in the Congress under expedited procedures. Gregg and Conrad are seeking to block the increase in the debt limit unless Congress approves their legislation. But according to Grover Norquist of Americans for Tax Reform: "Despite the appearance of protection for taxpayers, this commission would guarantee a net tax increase in its proposal. Every Democrat on the commission would insist on tax increases to 'balance' spending cuts in the recommendation."
Instead of guaranteeing a tax increase, which would hurt our struggling economy, here's a better approach: Bring back and update the Gramm-Rudman-Hollings emergency deficit-cutting law. Championed by former Sens. Phil Gramm (R-TX), Warren Rudman (R-N.H.), and Ernest Frederick "Fritz" Hollings (D-S.C.), the bipartisan Gramm-Rudman law was enacted in 1985, when Congress was under intense public pressure to reduce what was then considered an unheard-of budget deficit of $200 billion.
Specifically, Gramm-Rudman required Congress to meet year-by-year deficit-reduction targets, ending with a balanced budget by the end of 1991. If Congress missed those targets, the law triggered automatic across-the-board spending cuts - a process called "sequestration" - to reduce deficit spending to the mandated level.
Critics charged that Gramm-Rudman failed because Congress routinely missed the annual deficit-cutting targets by an average of $30 billion, and the budget was never balanced while the law was in effect. True, but all told, Gramm-Rudman did produce lower deficits: The fiscal 1989 deficit was about $100 billion lower than had been expected in 1985 without Gramm-Rudman, and deficits as a share of our national economy decreased from 5.8 percent to 3.8 percent from 1985 to 1989. Gramm-Rudman also curbed the growth of government spending from an annual average of 8.7 percent in the five years before the law to 3.2 percent in the five years it was in effect. Even entitlement-spending growth slowed to 5 percent annually as Congress trimmed mandatory spending to avoid draconian cuts in discretionary spending programs.