Today, Americans for Tax Reform and its Center for Fiscal Accountability urged Members of Congress to support the Cut, Cap and Balance Act when it comes to the floor tomorrow. After the conservative movement made clear again today that tax hikes are off the table in the debt limit debate, the CCB bill represents a serious proposal to remedy the country's ailing fiscal health. From our letter:
The Act would cut $111 billion in discretionary spending next year. While the legislation leaves significant room for further restraint in defense spending, this cut would still be an important step towards curbing the massive discretionary spending growth of the past few years.
H.R. 2560 would also establish statutory spending caps that would set total federal spending on a glide path down to its historical average of 19.9 percent of Gross Domestic Product (GDP). While continued efforts should be made to bring this spending in line with the historical average for revenues—18 percent—this too signifies a departure from projected spending, which is expected to average 23 percent of GDP for the next ten years.
Lastly, the bill would require a Balanced Budget Amendment to the United States Constitution be passed by Congress before additional borrowing authority can be exercised by Treasury. The legislation specifies the amendment would have to satisfy the critical requirement of a two-thirds majority of both chambers in order to raise taxes, ensuring taxpayers will not be on the hook for the foolhardy spending practices of reckless lawmakers.
The Cup, Cap and Balance Act of 2011 represents the most serious legislative proposal offered in the debt limit debate. Members of Congress concerned about restoring the United States’ credibility and financial health should endorse this effort to implement lasting spending reform.
Click here to read the letter in its entirety.
Do you support the CCB Act? What do you think should be done in exchange for raising the debt limit?