Below you will find an editorial I penned for Investor's Business Daily today.

Plan Will Save Free Market, Not Destroy It

By REP. JOHN CAMPBELL

This free-market, Milton Friedman devotee, conservative Republican congressman will be voting strongly in favor of the $700 billion bailout for Wall Street. What, you ask? Has the California sun fried my last brain cell?

No. I will vote for this bill because it will likely not cost anything, is not a bailout of anybody and will help every American with a bank account, a job or a retirement plan. It also will save the free market, not weaken it.

Allow me to explain.
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I am sure many of you have been paying attention to the debate (or lack thereof) on energy in Congress.  Well now the majority has decided to take up a bill after months of pleas from Republican members of the House.  However, this bill is designed to fail, and worse yet it increases spending and taxes.  Don’t believe it?  Here are some of the details.

Lack of Incentive: The bill allows offshore drilling, only for States that choose it, no closer than 50 miles from the coast, however it also prohibits revenue sharing of new oil and gas proceeds, thereby removing any incentive for States to “opt in” and allow drilling off their coasts. Nor does the bill offer any lawsuit protection, so companies that do search for oil will continue to be hampered with limitless litigation by environmental groups.

This bill will raise taxes: This bill raises taxes on large oil and gas companies engaged in domestic energy production by nearly $13.9 billion over 10 years, all to provide tax breaks to favored energy projects and products. The bill also limits the use of foreign tax credits on the international operations of oil and gas companies, which pushes the overall tax hike in the bill up to $17.7 billion.

Reduces revenue: The Congressional Budget Office [CBO] has estimated the government could initially receive $5 billion in additional revenue without raising taxes by opening the OCS and allowing drilling in the Arctic National Wildlife Refuge [ANWR]. Yet this bill continues to limit drilling in the OCS.  According to CBO, it reduces revenue to the Treasury by $1 billion,

New Fees for Energy Companies: The bill raises $5.8 billion by imposing new fees on certain leases that currently pay no royalties. It also imposes $1.8 billion of new fees on non-producing Gulf of Mexico leases, and requires retroactive lease payments back to 1 October 2007 on certain leases.

Higher Spending, No Deficit Reduction: The bill increases the top line for appropriated spending by $6.6 billion, so that total 2009 nonemergency discretionary spending increases by 9.3 percent over 2008. All new revenue in the bill is set aside in a reserve fund to offset future appropriated spending increases. There is no guarantee this funding will be used to reduce U.S. dependence on foreign oil.

More Earmarked Spending: The bill restructures the New York Liberty Zone Program, making it a $2-billion earmark that can be used for any transportation infrastructure project in New York City. The measure also earmarks $25 million to establish a so-called “National Energy Center of Excellence.”

New Spending for Energy Block Grants: The bill also authorizes $2.5 billion in new spending for energy related block grants, and $3.4 billion to States for transportation grants.

Exploiting the Fannie-Freddie Bailout: The bill seeks to make Fannie Mae and Freddie Mac green when the problem is they are insolvent. It directs the two financially ailing firms to develop loan products and flexible underwriting guidelines to facilitate a secondary market for energy- and location-efficient mortgages on low- and moderate-income housing. The bill also calls for Fannie and Freddie to facilitate second and junior mortgages for energy-efficiency and renewable energy improvements.

It’s no secret that this Congress has had a problem passing appropriations bills on time.  Last year, we resorted to passing a giant omnibus bill at the last minute, and this year we likely will recess until after the election by passing a continuing resolution (CR), to fund the government at its current levels.  The good thing about a CR is that at least the government will continue operating at current levels rather than recklessly increase spending levels.

Over on the Senate side, Senator Jim DeMint (R-SC) has introduced an amendment that would give the Dept. of Defense and Dept. of Energy the ability to disregard more than $5 billion in defense earmarks contained in the upcoming $612.5 billion defense policy measure ( S. 3001).

Senator Levin (D-MI), Chairman of the Senate Armed Services committee has objected to the amendment, and the bill has stalled in the Senate.  I applaud Senator DeMint and his colleagues including Senator Coburn (R-OK) for taking a stand on this issue. 

We have generals and admirals in the field who know what they need to fight and win.  It is ridiculous that we would opt to divert needed resources towards unwanted and at times ineffective earmarks, and in the end it hurts our ability to effectively provide for our national security. 

Today, the Congressional Budget Office released its latest figures on the deficit, and they aren’t good.  According to the report the federal government will run a deficit of $407 billion for the budget year that ends on Sept. 30. 

Furthermore, CBO expects that if current policies remain in place the budget deficits will remain over $400 billion for the next two years.  The CBO figures reflect a tremendous jump from $161 billion in 2007. If the CBO projection is right, numbers would balloon to about 3% over the next two years.

CBO also estimates that during 2008 federal spending will be 8.3% higher than in 2007, meanwhile revenues will be likely be less than they were in 2007.   

Based on these numbers, at least this much is true; the next Congress and President must take a serious look at the spending addiction that permeates the Halls of Congress and the Presidency. 

This recklessness must stop.

According to a recently released report by Taxpayer’s for Common Sense (TCS), House members will receive $290 million more in earmarks this year, than in last.   This increase is also accompanied by an increase in approved projects, which will swell by about 200 this year. 

These spending projects are included in the appropriations bills approved by the House, and so far we have only passed one of these spending bills. Current House leadership is hoping that a Democratic President will be friendlier to member earmarks, so it is unlikely we will pass or even consider anymore appropriations bills until after the first of the year.    

Overall, $5.12 billion accounts for all the earmarks in the spending bills we have seen thus far.  That takes into account these bills before conference reports, however conference reports are notorious for being stuffed with pork before being sent off to the President. 

Earmarks are the gateway drug to overspending, they must be reformed to help temper Congress’ addiction.

Congressman Ryan (WI) is the Ranking Member from the Committee on the Budget, and the main designer of the American Roadmap. 

America is on an unsustainable fiscal course. Today, the unfunded liability of just our two largest entitlement programs – Medicare and Social Security – is $40 trillion. That’s nearly $400,000 for every household in the U.S., and this burden continues to grow every year Congress fails to act.

If we continue down this path and do nothing to reform these programs -- the federal government will double in size, shackling the country with a future of higher debt, higher taxation, and a lower standard of living.

It is unconscionable to leave our children with this type of future. America’s legacy has always been to leave the next generation better off than the one before it. Unfortunately, Congress’ unwillingness to address the nation’s entitlement crisis threatens to shatter this legacy. 

That’s why I’ve introduced A Roadmap for America’s Future, comprehensive legislation that seeks to transform the major federal entitlement programs, as well as the federal tax code.  My plan achieves three important goals: 1) it provides universal access to health care and saves Social Security and Medicare; 2) it lifts the looming debt burden off of future generations; and 3) it ensures America leads and continues to create jobs in an increasingly competitive global economy. 

Rather than working to address the unsustainable growth in the entitlement programs, many in Congress claim it’s not politically feasible to try to reform them in an election year. Well, it’s an election year every other year.  They make excuses, taking a pass on tackling a problem that is going to tackle us. 

Not Representative John Campbell.  He understands this problem and wants to fix it.  He has the courage to talk about what is necessary to address this problem, and I’m lucky to have him as a cosponsor on my bill. 

America has risen to overcome greater challenges in the past.  With the leadership from members like John Campbell and the ingenuity, strength and resolve of Americans, we can solve this problem and leave a greater legacy for our children and grandchildren.  

For more details on A Roadmap for America’s Future, please visit www.americanroadmap.org. 

Rep. Paul Ryan (R-WI)
Ranking Member
Committee on the Budget 

Last week I blogged about the Flake/Campbell amendment to the Military Construction and Veterans Affairs Appropriations Bill, however there were other amendments that are worthy of mention.

Congressman Michael McCaul (R-TX), offered an amendment that would prohibit the use of federal funds for a “Monument to Me” for any Member of Congress.

Thankfully, the amendment passed. Here is a list of some of the most egregious examples:

• Robert C. Byrd Center for Hospitality and Tourism
• Robert C. Byrd addition to the lodge at Oglebay Park, Wheeling
• Robert C. Byrd Hilltop Office Complex
• Ted Stevens International Airport, Anchorage
• Harkin Grants: A grant program for local school remodeling in Iowa
• Harkin Wellness Grants: A grant program for promoting healthy lifestyles in Iowa
• Thomas R. Harkin Global Communications Center (CDC building)
• Arlen Specter Headquarters and Emergency Operations Center (CDC building)
• Mitch McConnell Park in Bowling Green, KY
• John D. Dingell Drive, which allows access to the new airport terminal at Detroit Metro
• Cynthia McKinney Parkway in Atlanta
• Jack Murtha Highway
• James E. Clyburn Golf Center
• James E. Clyburn Pedestrian Overpass
• James E. Clyburn Intermodal Transportation Center
• Charles B. Rangel Center for Public Service at the City College of New York

As you can tell this isn’t just an isolated problem.  But rather it is a widespread problem that both parties are engaging in.  That’s why I am original cosponsor of H.R. 5771, which will attack this problem head on and eliminate the practice of “Monuments to Me” for good.

This kind of bombastic self promotion with taxpayer dollars must stop.

Congress has passed no meaningful energy legislation to move us towards lower gas prices and more American energy and now has recessed for a 5 week break. Republicans, including yours truly, wanted to speak more about that on the floor of the House this afternoon. The Pelosi majority took the unusual step of calling for immediate adjournment to prevent these speeches from going forward and turned off the cameras and microphones on the House floor.

It’s one thing to not allow a vote on more energy production. It’s another to not even allow people to speak about it. I and several dozen others are speaking on the House floor right now to a gallery full of cheering people to demand that Speaker Pelosi allow a vote on more American energy production. No TVs. No microphones.

You can turn off the lights, but you cannot silence the will of the American people.

Today, Jeff Flake and I offered an amendment to the FY2009 Military Construction/Veterans Affairs Appropriations Bill.  Our amendment would prohibit funding for the 103 congressionally requested earmarks found in the bill.  This amendment would also reduce the overall cost of the bill by the more than half a billion taxpayer dollars. 

This is likely to be the only appropriations bill that we will see before the election, and the only chance Members will have to publicly state their position on earmarks. In what should be a pretty straightforward vote, at least for Republicans, is causing considerable consternation for both sides of the aisle.  It is being considered in the Report cards of numerous groups.

The Amendment failed by a vote of 350-63, to see how Members voted, click here.

Clearly Members of Congress do not yet understand what the vast majority of Americans know--earmarks must be ended or reformed. However, we did garner more votes than a similar amendment received last year. It can take awhile for Congress to get a message.

Keep sending them one.

Today I want to take a moment and honor one of the world’s most preeminent advocate for free markets and personal liberty, Milton Friedman.  Friedman helped shape the fiscal policy across the world, and Ronald Reagan and Margaret Thatcher looked to him for advice.

Milton Friedman did not invent free markets, but he proved that laissez-faire policies must be at the foundation of any free society.  Friedman was a statistician, economist, and public servant who advanced the idea of freedom based on minimizing government involvement to achieve economic, social, and political freedom. 

According to the Former Federal Reserve Board Chairman, Alan Greenspan, "There are very few people over the generations who have ideas that are sufficiently original to materially alter the direction of civilization. Milton is one of those very few people."

I cannot agree more.  Milton Friedman’s worked influenced many, including this Conservative.

A few months ago I predicted that the deficit would be a half trillion dollars by the end of the year.  In fact now, the Office of Management and Budget is predicting the budget deficit will be at $490 billion next year.

Well, I was off by $10 billion. But only for now. This Congress passes spending bills creating entirely new programs, spending or entitlements nearly every week. We may cross that half a trillion before the year is over. And with the socialized medicine programs that some are touting for next year, is a trillion dollar deficit coming?

For Tax Year 2006

This past week in Congress, we considered a bill that that would try to sue our way to lower gas prices as well as another bill to create subsidies for only federal employees to take public transportation to work.

All I can say is are you kidding me? 

The cartoon below has a greater meaning after this week.