Jason Ye; jye530@gmail.com Prof. Ashely Torrence Stefan Dinn 7/20/2013 Resolved, that the U.S.

can best lower its national debt by significantly reducing governmental spending rather than increasing taxes. Affirmative Introduction: I. Attention Getter a. In August 31, 2012, the national debt reached the $16 trillion line. In a flash on September the 4th, the news was covered in headlines announcing the USs ascendancy to $16 trillion, sending politicians, citizens, and advocacy groups alike into a frenzy. Already shamed with the loss of its triple A credit rating in 2011, the United States government needs to take charge of its escalating debt. II. Thesis/Resolution a. Resolved, that the U.S. can best lower its national debt by significantly reducing governmental spending rather than increasing taxes. III. Significance Statement a. The growing national U.S. debt is a danger to U.S. assets and the nation itself. According to J.D. Foster Ph.D at Heritage Foundation, recent and projected growth in U.S. government debt poses a serious hazard to the nation (Foster 1). The national debt poses a serious issue and must be resolved/reduced as soon as possible. I chose this topic, because the national debt represents an important issue for the US government. IV. Clarification of Terms of Ground a. National Debt is a term that refers to the financial obligations of a national government resulting from deficit spending. b. Deficit Spending is a term that refers to a process of the government that occurs when the government must borrow money to finance costs when it exceeds revenue funds. c. Pork-Barrel Spending Pork d. Earmarks V. Preview of Main Arguments a. Indicators indicate that it is necessary to resolve U.S. debt and indicate an urgency to put into action a plan to reduce national debt. Indicators include the abnormal growth of interest rates paid to finance debts which has a negative effect on the economy according to Foster (Foster 1). Additionally growing U.S. debt weakens the economy and hurts Americans according to Boccia (Boccia 1). We can resolve U.S. debt by reducing wasteful spending such as

pork barrel spending and earmarks. In addition, entitlement programs are the main bulk of the national debt. Prudent reforms and elimination of waste and abuse can help reduce cost of entitlement programs thus reducing the government spending and growth of debt. Body: I. Main Argument 1: U.S. Debt Needs to Be Fixed Now a. U.S. Debt Higher Levels of Interest i. Reported on June 18th, 2013 by J.D. Foster of Heritage Foundation, the recent growth of U.S. government debt is a serious danger to the nation (Foster 1). High levels of government debt means that a substantial amount of government resources must be paid towards paying off the interest of these loans. As of July 12th, 2013, a projected amount of $345 billion will be paid to service national debt and is expected to grow according to treasurydirect.gov. That amount of money could be poured into executing beneficial projects or servicing other programs instead of going to service national debt. b. U.S. Debt Strain on American Citizens i. According to Romina Boccia in February 2013, the federal government is quickly exhausting its ability to manage its bills having reached the statutory debt ceiling. The government should focus on the need to reduce federal spending immediately by making necessary and prudent reforms (Boccia 1). Main Argument Two: Reduce Wasteful Spending a. Chris Edwards of the CATO Institute indicates that spending is at abnormally high levels (Edwards 1). The governments free spending policy may (and has) led to large tax increases on the American people and a lower standard of living. Public opinion is still majorly leaning towards reducing government spending as well according to recent polls. b. Pork barrel spending is a form of corruption and a waste of tax dollars doled out on political favoritism to advance the reputations of congressman. Generally and almost always wasteful, an example of pork barrel spending includes spending $1.4 million dollars to place decorative rocks and plants next to Nevada highway masked by the excuse of highway beautification in 2011 according to trutv.com (TruTV 2011). c. Additionally, according to a report by Ben Goad on thehill.com, a study published recently by the Government Accountability Office , following a three-year investigation found 31 new, additional areas of redundant and wasteful spending, adding the total number of areas to 160. Such wasteful spending include excessive catfish inspection to an unnecessary $82 million for military uniforms.

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V.

Main Argument 3: Reducing Entitlement Spending a. According to Jeanne Sahadi at CNNMoney, entitlement spending needs to be reined in because entitlement spending is the main cause of US debt (Sahadi 1). Due to the increase in citizens eligible (such as baby boomers) for entitlement, funds necessary for these programs would drastically increase, so we need to ask for reform. Chris Edwards at the CATO Institute suggests that Medicaid be converted into a block grant, fixing funds and allowing state flexibility. And for social security benefits to be indexed to prices rather than wages. Main Argument 4: Increasing Taxes is Bad (Rebuttal Card) a. Many also have a misconception about increasing tax rates. The Committee on Ways and Means (government) reported that higher tax rates would only burden small business owners (Committee on Ways and Means 1). With higher tax rates, small businesses would have less money to invest, grow and create jobs, negatively affecting workers reported the committee (Committee on Ways and Means 1). b. According to Scarmardella, tax codes have loop holes and unfairly favor wealthy tax payers. Instead of increasing tax rates, rather the government should institute tax reform. Also according to Scarmardella, proof that tax rollbacks work exists in 1964, when Congress cut personal taxes by 18% and the economy soared (Scamardella 1). Main Argument 5: Increasing Tax on the Rich Wont Work (Rebuttal/Cuttable Card) a. According to Alan Reynolds of Investors Business Daily, taxing the rich would not work, because they avoid paying a higher rate than the average citizen does by using loopholes and tax breaks (Reynolds 1). For example, Warren Buffet limits the amount of money the government can tax by using loopholes like donating to foundations such as the Bill and Melinda Gates Foundation. Instead of increasing tax rates, the government should rather implement tax reform. In this case, increasing tax rates wouldnt affect the national debt rather increase the burdens of the American people. b. In addition, increasing tax rates wouldnt help to reduce debt. According to a rational argument from FreedomWorks.org, increasing tax rates wouldnt help solve national debt, because government spending is the cause of national debt, not too little tax revenue.

Conclusion: I. In conclusion, the United States is in dire need of reducing the national debt. The best way to accomplish this is to reduce government spending since increasing tax has negative effects on the economy and the American people. Growing national debt is an urgent and serious threat to the future of America. By reducing wasteful spending such as earmarks and pork-barrel spending and reforming/reducing entitlement programs, the US government can significantly reduce its national debt. In conclusion, the US government needs to take immediate action into reducing the national debt. And by reducing government spending instead of increasing tax rates, the government can help provide its citizens with a better future.

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Works Cited Boccia, Romina. "How the United States' High Debt Will Weaken the Economy and Hurt Americans." The Heritage Foundation. Heritage Foundation, 12 Feb. 2013. Web. 13 July 2013. <http://www.heritage.org/research/reports/2013/02/how-the-united-states-high-debt-willweaken-the-economy-and-hurt-americans>. Committee on Ways and Means. "Ncreasing Tax Rates: Bad for Small Businesses, Bad for American Workers." Increasing Tax Rates: Bad for Small Businesses, Bad for American Workers. Committee of Ways and Means, 15 Nov. 2012. Web. 13 July 2013. <http://waysandmeans.house.gov/news/documentsingle.aspx?DocumentID=312346>. Edwards, Chris. "A Plan to Cut Federal Spending." Downsizing the Federal Government. CATO Institute, July 2013. Web. 13 July 2013. <http://www.downsizinggovernment.org/plan-to-cutfederal-spending>. Foster, J. D., Ph.D. "Why Is National Debt Bad: Real Dangers of Soaring Government Debt." The Heritage Foundation. Heritage Foundation, 18 June 2013. Web. 13 July 2013. <http://www.heritage.org/research/reports/2013/06/the-many-real-dangers-of-soaring-nationaldebt>. Reynolds, Alan. "Higher Tax Rates on Rich Wont Increase Revenues." Cato Institute. Investor's Business Daily, 12 Sept. 2011. Web. 13 July 2013. <http://www.cato.org/publications/commentary/higher-tax-rates-rich-wont-increase-revenues>. Sahadi, Jeanne. "National Debt: Why Entitlement Spending Has Be Reined in." CNNMoney. Cable News Network, 05 Sept. 2011. Web. 13 July 2013. <http://money.cnn.com/2011/09/05/news/economy/national_debt_spending/index.htm>. Scarmardella, Robert J. "Staten Island." Advance. SILive.com, 19 Feb. 2012. Web. 13 July 2013. <http://www.silive.com/opinion/columns/index.ssf/2012/02/why_increasing_tax_rates_is_a.html >.

TruTV. "TruTV: Not Reality. Actuality." The Most Wasteful Pork of 2011 Photo Gallery. Turner Entertainment Networks, 2011. Web. 13 July 2013. <http://www.trutv.com/conspiracy/government/pork-2011/gallery.all.html>.