House Republican Leaders Propose $375 Billion in Common-Sense Taxpayer Savings

In the face of out of control federal spending, House Republican Leader John Boehner (R-OH) and Republican Whip Eric Cantor (R-VA), on behalf of House Republicans, today sent a proposal and letter to President Obama outlining $375 billion in taxpayer savings over the next five years.

The proposal follows a meeting at the White House on April 24, during which Republican Whip Cantor brought up the President’s request to Cabinet secretaries to find $100 million in savings, noting that much more could be done on behalf of taxpayers. In response, President Obama asked House Republicans to develop of list of areas where the federal government could save more money.

President Barack Obama

The White House

Washington, DC 20500

Dear Mr. President,

Per our last bipartisan leadership meeting on April 23rd, enclosed please find a list of proposals that we believe could generate significant savings for American taxpayers.

As we have expressed to you, we are greatly troubled by the spending and deficit levels adopted in the recent budget. We believe this level of spending and borrowing is not only unsustainable, but unfair towards hard-working American families who will see increased mortgage costs as a result of our reckless borrowing and to future generations who will be required to pay for this profligate spending.

In testimony before the House Budget Committee yesterday, Federal Reserve Chairman Bernanke raised similar concerns stating, “Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth."

Of course, reducing spending is never easy. In 2005 when Congressional Republicans enacted the Deficit Reduction Act, which saved taxpayers $40 billion over five years, not one single Democrat in the House or Senate supported the bill. The proposed terminations and reductions your Administration released last month garnered immediate opposition from many Democrats. Likewise, the proposals we have put forward here will not be supported by all Republicans. However, if we work together, we are confident that we can come up with a common-sense package of entitlement reforms, program terminations, and spending reductions that will generate significant savings for the American taxpayer and reduce our current deficit. For example, enactment of the proposals we have outlined in the enclosed document could save taxpayers in excess of $375 billion.

We will continue to work with our Members to identify other potential areas for savings. We firmly believe that given the gravity of the current fiscal situation both parties must dedicate themselves to a sustained program to root out wasteful and unnecessary spending and reforming entitlement programs.

We look forward to working with you in this endeavor.

Sincerely,

________________________ ________________________

John Boehner Eric Cantor

Republican Leader Republican Whip