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For Immediate Release
Contact: Sean Rushton/Mark Carpenter
(202) 467-5300 
May 22, 2002

 

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No Excuses For Growing Federal Deficit
Cut the Wasteful Spending


(Washington, D.C.) - Citizens Against Government Waste (CAGW) today criticized Washington lawmakers after the Treasury Department confirmed this week the government is running a $66.5 billion deficit for the first seven months of fiscal 2002.  This is the first budget deficit in four years, and the figure could rise to $100 billion or more by the end of the year. 

"Both parties in Washington have been on a spending binge since the beginning of the budget year," CAGW President Tom Schatz said.  "As always, wasteful spending and pork barrel politics are the true culprits in the government's never-ending struggle to stay out of the red." 

CAGW estimates that by enacting the following reforms, Congress can not only eliminate the deficit, but also transform it into a surplus:

1)  Eliminate wasteful and/or duplicate programs.  CAGW's annual publication Prime Cuts catalogued over 543 recommendations that would save taxpayers $159 billion in fiscal 2002  (creating a surplus) and $1.27 trillion over the next five years.  Examples include reforming milk orders (saving $669 million over five years) and eliminating the Advanced Technology Program (saving $480 million over five years). The programs featured in Prime Cuts serve concentrated interests at the expense of the general population and are full of abuse, fraud, and mismanagement.

2)  Cut the pork.  Pork-barrel giveaways surpassed $20 billion this year, including $2 million to refurbish the Vulcan Statue in Birmingham, Ala; $190,000 for the Motor Racing Museum of the South; and $273,000 for educational training in combating "Goth" culture in Blue Springs, Missouri.

3)  Eliminate corporate welfare.  President Bush recently signed a $190 billion farm bill that increases farm subsides by 65 percent over the next ten years.  Most of this goes to established agribusinesses, not to family farms.  Cutting all programs such as the steel industry subsidies, the Economic Development Administration, and the Export-Import Bank would save taxpayers about $80 billion annually.

4)  End improper payments.  The government annually writes at least $20 billion in checks to the deceased or imprisoned, and provides benefits for others who game and cheat the system.  For example, Medicare lost about $12 billion this way last year.  Worse, there are few mechanisms for recouping lost funds, even though private companies exist that would do it for a fraction of the returned revenue.

"As you can see, there is plenty lawmakers can do to reverse the rising deficit," concluded Schatz.  "Instead of punishing average citizens by raising taxes or adding to the national debt, politicians should give up their addiction to frivolous spending and political favoritism." 

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

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