Rep. Miller: House Republicans Move Forward Plan to Cut Spending, Deal with National Debt

July 25, 2011 6:01 PM

WASHINGTON – U.S. Congresswoman Candice Miller (MI-10) today made the following comments regarding the two-step plan House Republicans put forward to prevent a national default while ensuring any debt limit increase granted to President Obama includes spending reforms and cuts larger than the debt limit hike. The vote will take place in the House of Representatives this week. Miller said:

“This two-part plan meets the fundamental goals necessary to put our economy on stronger footing and bring fiscal sanity to Washington. House Republicans have based this plan off of the principles in the House passed Cut, Cap and Balance and the long-term budget proposal House Budget Committee Chairman Paul Ryan put forward earlier this year. This House Republican plan takes the responsible steps needed to preserve the full faith and credit of the United States. This is a common sense plan, a frame-work that will allow us to move forward to stop the immoral practice of continuing to borrow trillions from our children and grandchildren to pay for today’s government overspending. Because this plan achieves our fiscal goals by reducing spending, not by increasing taxes on already struggling American job creators, we will set in motion an environment that will allow for economic growth and the creation of new jobs.

“I urge my colleagues in the House to pass this legislation in a bipartisan manner, and to put aside political considerations that should be kept separate from doing what is right for this nation. The American people are looking to us to find the solutions to our nation’s problems and we must act now to secure our financial future and preserve the American Dream for future generations.”

NOTE: This two-step approach will (1) make spending cuts that are larger than any debt ceiling increase; (2) implement spending caps to restrain future spending; and (3) advance the cause of the Balanced Budget Amendment – without tax hikes on families and job creators. Additional information on the plan:

  • Cuts That Exceed The Debt Hike. The framework would cut and cap discretionary spending immediately, saving $1.2 trillion over 10 years (subject to CBO confirmation), and raise the debt ceiling by less – up to $1 trillion.
  • Caps To Control Future Spending. The framework imposes caps on discretionary spending that would establish clear limits on future spending and serve as a barrier against government expansion while the economy grows. Failure to remain below these caps will trigger automatic across-the-board cuts (otherwise known as sequestration).
  • Balanced Budget Amendment. The framework advances the cause of the Balanced Budget Amendment by requiring the House and Senate to vote on the measure after October 1, 2011 but before the end of the year, allowing the American people time to build sufficient support for this popular reform.
  • Entitlement Reforms & Savings. The framework creates a Joint Committee of Congress that is required to report legislation that would produce a proposal to reduce the deficit by at least $1.8 trillion over 10 years. Each Chamber would consider the proposal of the Joint Committee on an up-or-down basis without any amendments. If the proposal is enacted, then the President would be authorized to request a debt limit increase of $1.6 trillion.
  • No Tax Hikes. The framework includes no tax hikes, a key principle that Republicans have been fighting for since day one.

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