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Many citizens in the United States have strong opinions about congressional salaries. Generally, there is significant dissatisfaction and skepticism regarding how much members of Congress are paid. This sentiment is often tied to broader frustrations with Congress’s performance and perceived inefficiencies. There is a widespread belief that members of Congress do not adequately justify their salaries through their work. Many Americans feel that congressional compensation does not align with the performance and accountability they expect from their elected officials.
Tying congressional salaries to performance could potentially incentivize better results and accountability. It might encourage members of Congress to focus more on effective legislation and constituent services. However, measuring performance in a fair and objective way could be challenging, given the complexity of their roles and the diverse interests they represent. The goal here is more in line with reducing spending than adjusting salaries and, as you can see, rewards good performance.
Congressional Salary Adjustment Contingency Act
Section 1: Purpose
The purpose of this Act is to establish a contingency plan that adjusts the annual salaries of Members of Congress based on the national debt, Gross Domestic Product (GDP), and the timely agreement on the national budget to incentivize fiscal responsibility and economic growth.
Section 2: Definitions
National Debt:
The total amount of money that the federal government owes to creditors.
Gross Domestic Product (GDP):
The total value of goods produced, and services provided in the United States for one year.
Base Salary:
The annual salary of Members of Congress as determined by existing law.
National Budget:
The federal government’s plan for revenue and spending for the upcoming fiscal year.
Section 3: Salary Adjustment Mechanism
Decrease in National Debt:
If the national debt decreases by $1 trillion or more within a fiscal year, the annual salary of Members of Congress shall be increased by 5% for the following fiscal year. This increase is subject to the condition that it does not exceed any pre-existing salary caps set by law.
Incentives for GDP Growth:
To foster a stronger and more resilient economy, this bill proposes a performance-based incentive structure for members of Congress. Effective immediately upon passage, Congressional salaries shall be subject to the following conditions:
Proportional Salary Increase Without a Cap:
If the GDP growth rate exceeds 3.5%, the annual salary of Members of Congress shall be increased by a percentage equal to the GDP growth rate minus 3.5%.
For example, if the GDP growth rate is 4.5%, the salary increase would be 1% (4.5% - 3.5%).
Performance-Based Bonuses:
If the GDP growth rate exceeds 3.5%, Members of Congress shall receive a bonus that is a fixed percentage of their base salary. This bonus shall be equal to 2% of their base salary for every 1% increase in GDP growth rate above 3.5%.
Increase in National Debt:
If the national debt increases by $1 trillion or more within a fiscal year, the annual salary of Members of Congress shall be decreased by 5% for the following fiscal year.
GDP Growth Rate Below Threshold:
If the GDP growth rate falls below 2.5% for a fiscal year, the annual salary of Members of Congress shall be decreased by 5% for the following fiscal year.
Failure to Agree on National Budget:
If Congress fails to pass the national budget by the start of the fiscal year, the annual salary of Members of Congress shall be decreased by 10% for that fiscal year.
Section 4: Implementation and Review
Monitoring:
Economic Advisory Council:
The Department of the Treasury shall monitor and report the national debt and GDP growth rate at the end of each fiscal year.
If necessary, an independent Economic Advisory Council shall be established to assess and report on the GDP growth rate and other relevant economic indicators. The Council’s findings shall be the basis for determining bonuses and salary increases.
The Office of Management and Budget (OMB) shall monitor and report on the status of the national budget agreement.
Adjustment Notification:
The Department of the Treasury shall notify the Office of Personnel Management (OPM) of any required salary adjustments by October 1st of each year.
The OMB shall notify the OPM of any required salary adjustments due to the failure to agree on the national budget by October 1st of each year.
Non-Retroactivity:
Any salary decreases or increases mandated by this Act shall not be applied retroactively. Adjustments shall only apply to future salary payments.
Review:
This Act shall be reviewed every five years to assess its effectiveness and make necessary amendments.
Section 5: Effective Date
This Act shall take effect on the first day of the fiscal year following its enactment.
While revising the current proposal, we discussed the possibility of extending this bill to include adjustments to salaries based on the spending percentage of GDP. This adjustment is essential because it reflects the extent of government involvement in the economy. Spending on investments in public services, infrastructure, social programs, and crisis relief is acceptable. However, if funds are allocated to incentive programs and grants instead of social programs for the right reasons, it can overwhelm and control our economy, effectively using taxpayer money to gradually own and control the country.
There are two schools of thought with different approaches, depending on the purpose. The Cato Institute reports government spending at federal, state, and local levels at 41% of GDP, while…
As you can see, we have revised and edited this recommended bill in two categories. If there is a decrease in the national debt, the pay increase is not capped and is only limited by pre-existing salary caps set by law. We have also adjusted the increase proposal based on GDP growth rate: when GDP growth exceeds 3.5%, there is no cap on the increase. Additionally, we have clarified the calculation of the 1% increase and the application of the 2% bonus. We believe these changes create more incentive and make the proposed bill clearer.
We will do a small change on this that will not limit the increase not to exceed the base salary. In it more closely, that was an error and no increase at all. We're working on how the increase should work and create appropriate incentives.
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