Heinrich: Raise Taxes, Cut Spending To Tackle Debt

WASHINGTON — Rep. Martin Heinrich’s plan to help the federal government gain control of its runaway debt calls for spending cuts and tax increases — at least for the wealthiest Americans.

“Any major deficit reduction package has to have a mix of both of those things,” Heinrich, current U.S. House member and Democratic nominee for U.S. Senate, told the Journal in a recent interview.

The former Albuquerque city councilor said he hopes Congress can agree on a long-term debt reduction plan before Jan. 2 to stave off so-called “sequestration,” a proposal enacted by Congress this year that would force deep spending cuts for the Pentagon and social programs.

“We need to come to the table and come up with a better solution than sequestration,” Heinrich said. “If we can put revenues back on the table — the Bush-era tax cuts for millionaires — we can reduce the deficit a lot more without the draconian aspects of sequestration. We can’t afford to keep doing what we’re doing.”

Heinrich has voted to raise taxes on individuals making more than $200,000 and families making more than $250,000 per year. He would preserve tax cuts for those making less.

Even some Democrats acknowledge that revenue stemming from this plan for eliminating some of the President George W. Bush-era tax cuts, and effectively raising taxes, would not reduce the national debt to a significant degree but contend that it is a start.

Funding and cuts

Heinrich also said the entire tax code should be scoured to look for loopholes that allow corporations to skirt tax obligations, but said he would likely oppose efforts to rescind research and development tax credits that spur innovation.

Although pressed by the Journal, Heinrich did not specify any significant non-defense spending cuts he would endorse.

A member of the House Armed Services Committee, Heinrich said he would vote for some military spending cuts.

“There is a lot of waste at the Pentagon, and defense spending will have to be a part of the solution, but it shouldn’t come at the expense of our military readiness,” Heinrich said. “We need to do it smart — not just cuts across the board but look for the programs that are no longer serving a purpose.”

Heinrich cited his vote in support of cutting $450 million for the alternative F-35 jet fighter engine as an example of his willingness to cut spending.

Social Security

Heinrich said he would not support means testing or raising the retirement age for Social Security as a way to help balance the federal deficit.

“I’m not a huge fan of means testing,” Heinrich said. “I don’t think Social Security is the root of this problem. We have a deficit today because of decisions we made between 2000 and 2008 that moved us from the policies of the late ’90s, when we had a balanced budget, to a deficit.

“I think there are other places in the budget we need to look first before we even talk about any changes to Social Security,” Heinrich said. “Social Security didn’t create the problem, so we shouldn’t try to balance the budget on the backs of seniors.”

Meanwhile, in its annual report to Congress this year, the Social Security Board of Trustees found that the combined old-age and survivor accounts will be exhausted in 2033, three years sooner than projected last year. At that time, non-interest income to the Social Security fund will pay only about 75 percent of scheduled benefits.

Heinrich said that if elected to the Senate he would support so-called “pay-go” legislation that would force the federal government to offset all spending with more revenues or cuts to other programs.

“The first thing we need to do is go back to pay-go rules that say before you can pass some new program you have to find a way to pay for it and before you pass a new tax cut you have to pay for it,” Heinrich said.

Medicare

Heinrich said he is “vehemently opposed” to turning Medicare into a so-called “voucher program” in which a Medicare beneficiary would be paid an amount by the government that he or she could use toward private insurance premiums.

“With Medicare you have an issue of rising medical costs,” Heinrich said. “The way you deal with that, in my view, is to reform how doctors are paid, not to cut benefits and not to privatize the system.”

Heinrich said Medicare providers should be compensated for “outcomes” and the quality of care for patients, not the number of procedures they perform.

“A voucher system it creates more administrative costs so you get less product and less benefits for seniors for the same amount of money,” he said.
— This article appeared on page A1 of the Albuquerque Journal