Today, Americans for Tax Reform and its Center for Fiscal Accountability sent a letter to the United States Senate urging member to support the Cut, Cap and Balance Act. Majority Leader Harry Reid announced today he will move to table the bill tomorrow, effectively killing the only serious legislative proposal to solve the debt limit impasse. After refusing to even pass a budget for over 800 days, will Senate Democrats allow a debt limit deal to fail too? From our letter:
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). After the failed “stimulus” plan and continued government intrusion into the free market in the form of bailouts and regulatory overreach, federal spending stands at close to 25 percent, and is expected to average 23 percent over the past few years. With revenues leveling out at their 18 percent average at the same time, it is obvious the government’s spending is the problem that needs to be addressed.
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. We encourage you to support H.R. 2560 and reject the effort to table the bill.
Click here to read the letter in its entirety.