By Thomas J. McKillen
Managing Editor

Debt reduction should be the number one priority for policy makers over the next year, Rep. F. James Sensenbrenner (R-Menomonee Falls) indicated during an office hours appearance at the Sussex Village Board Jan. 27.
He explained that as a result of a Congressional “super committee” in November to agree on spending reductions will mean that $1.2 billion of reductions will have to be split between reductions in the military and domestic discretionary spending. Those cuts will  have to be implemented at the end of the current fiscal year, which ends June 30.
“One of the big arguments will be whether to make sure the military does not suffer as big a cut as was in the debt ceiling increase law that the President signed in August,” Sensenbrenner said. “My position is that deficit reduction has got to be the top priority because we have a $15-plus trillion dollar debt, it will be $16 trillion by the end of the year.”
Sensenbrenner said that restoring any cuts from the military would have to be offset by reductions in other programs so there is no net increase in the debt. He later indicated he is concerned that proposed cuts in the military “are going to actually weaken our capability to defend ourselves in a world that is probably more dangerous now than before the Soviet Union collapsed.”
Sensenbrenner also referenced the national debt when he commented on President Barack Obama’s state of the union address four days earlier. Sensenbrenner cited data showing there are two million more people unemployed than at the time President Obama took office.
“The stimulus and the son and grandson of stimulus failed,” Sensenbrenner said.
Sensenbrenner cited data which showed the national debt increased from $10 trillion at the time the president took office to $15.2 trillion.
Sensenbrenner said that President Obama failed “to emphasize the necessity of reducing the deficit and reducing the debt. “ 
Sensenbrenner noted that the nation’s debt is above the national gross domestic product.
He added that the way to revive manufacturing “is tariffs, not tax breaks.”
“American manufacturing has had difficulty competing against products made in countries like China where they pay slave labor wages to their employees,” Sensenbrenner said.
In response to another question, Sensenbrenner predicted there will be a day coming when there will be overall tax reform.  He said the best way to ensure tax reform happens is to sunset the current tax code to a certain date in the future. If Congress is unable to agree on a new tax code to replace it, there won’t be any taxes at all.
“That’s the stick that will force Congress to act on time,” Sensenbrenner said.
He added that if Congress were to reduce overall tax rates and eliminating loopholes, it would encourage the creation of jobs.
“You will get more revenue out of the rich by getting rid of a lot of the deductions and loopholes than by putting another bracket on top of the current brackets,” Sensenbrenner said.
He added that the three deductions that should not be touched are the home mortgage interest deduction, the state and local tax deduction and the charitable contributions deduction.