House Republicans are committed to solving our nation’s debt crisis now with the Cut, Cap and Balance Act
WASHINGTON – U.S. Congresswoman Candice Miller (MI-10) today made to following comments regarding the Cut, Cap and Balance Act, a measure Miller is co-sponsoring. The Cut, Cap and Balance Act will cut $111 billion in spending in FY 2012, reduce non-security discretionary spending below 2008 levels and require Congress to pass a Balanced Budget Amendment (BBA) to the Constitution and send it to the states for ratification. Once adopted, the BBA will legally force the government to only spend what it takes in. The Cut, Cap and Balance Act is scheduled to be voted on Tuesday, July 19th. Miller said:
“This week House Republicans will vote on a measure to cut and cap federal spending marking the first step towards instituting a balanced budget amendment. With a total federal debt of over $14 trillion, annual budget deficits of over $1.4 trillion each of the last two years and trillion dollar deficits on the horizon as far as the eye can see, drastic action is now required to bring fiscal sanity to the federal government. It is unfortunate that President Obama has threatened to veto this plan that would actually put this nation on sound financial ground and on a path toward prosperity.
“In issuing his veto threat, President Obama called this effort an ‘empty political statement and unrealistic policy goals.’ This is unbelievable coming from a President who sent a budget to Congress earlier this year that was so irresponsible and unrealistic that it was defeated 97-0 in the United States Senate. The fact of the matter is 49 or our 50 states operate under balanced budget requirements as do most local units of government across the nation. Far from being an empty political statement, a balanced budget amendment would force Washington to make the reductions in spending that it has so far refused to make. In Michigan, Governor Snyder and the state legislature have implemented an emergency financial manager law that forces local communities to balance their budgets. Perhaps it’s time for Governor Snyder to send one of his emergency financial managers to Washington to help the Obama Administration understand financial common sense.
“The President also says that reductions in federal spending threaten the nation’s ability to ‘ensure dignity in retirement.’ The President’s own Medicare advisory board has already stated that the program will go bankrupt in 12 years if no action is taken, yet the President has yet to publicly offer a plan to save Medicare. Bankruptcy in Medicare is a far greater threat to a dignified retirement than common sense reductions in spending that guarantee that Medicare is there not just for this generation, but for future generations. The continued out-of-control spending, borrowing and deficits by the federal government threaten the dignity of every American by burying this and future generations under a mountain of debt.
“It took our nation 216 years from 1776 until 1992 to rack up $3.7 trillion in debt - the amount that our debt has increased in just the two and a half years that President Obama has been in office. Republicans are now offering a proposal to turn the tide from out-of-control spending and debt to fiscal responsibility. President Obama should be embracing these efforts instead of threatening vetoes.”
The Cut, Cap, and Balance Act of 2011
CUT: Cuts total spending by $111 billion in FY 2012. The savings is divided as follows:
Reduce non-security discretionary spending below 2008 levels, which saves $76 billion
$35 billion cut to non-veterans, non-Medicare, non-Social Security mandatory spending
Defense budget at President’s level
CAP: Total federal spending is scaled back based on the glide path for the fiscal years below:
2012, 22.5% of GDP
2013, 21.7% of GDP
2014, 20.8% of GDP
2015, 20.2% of GDP
2016, 20.2% of GDP
2017, 20.0% of GDP
2018, 19.7% of GDP
2019, 19.9% of GDP
2020, 19.9% of GDP
2021, 19.9% of GDP
BALANCE: Requires the passage of a BBA before raising the nation’s debt limit. The BBA consists of three parts to control federal spending and prevent unnecessary tax hikes:
1. Amend the Constitution to require that total spending for any fiscal year not exceed total receipts;
2. Require that bills to raise revenues pass each House of Congress by a 2/3 majority; and
3. Establish an annual spending cap such that total federal spending could not exceed 18% of the economic output of the United States.
DEBT CEILING INCREASE CONTINGENT ON BBA: Provides for the President’s request for a debt ceiling increase if a qualifying BBA passes Congress and is sent to the states for ratification.
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