The US House of Representatives is expected to soon vote on the “Terms of Credit Act,” legislation introduced by Republican Study Committee Chairman Bill Flores (R-Texas). This legislation is a responsible, pro-taxpayer proposal that raises the debt limit while implementing a set of reforms to cut spending by over $3.8 trillion and force the federal government to live within its means. ATR endorses this blueprint as a strong, commonsense proposal and urges all Members of Congress to support the RSC plan.
This legislation raises the debt ceiling by approximately $1.5 trillion, which means the limit will not be next reached until March, 2017 – well into the next president’s term.
In return for a further $1.5 trillion on the nation’s credit card, this plan establishes a detailed procedure that forces legislative committees to produce legislation that complies with the budget resolution passed by the House earlier this year. This will require committees to produce legislation that will ensure over $3.8 trillion worth of deficit reduction over the next ten years.
The RSC budget plan also creates several backstops if authorizing committees fail to produce a plan, to ensure that real savings are achieved.
The Terms of Credit Act also contains a number of other important provisions to address the nation’s spending problem. First, this plan requires a vote on a Balanced Budget Amendment before the end of the year. Second, this legislation prohibits Congress leaving town if it has not completed its constitutionally mandated appropriations work.
Third, this legislation gives American workers, small businesses, and families much needed relief by prohibiting any significant regulatory action through July 1, 2017, and prohibits any new regulatory action during a president’s lame-duck session.
The RSC’s Terms of Credit Act implements a series of pro-taxpayer, fiscally responsible measures in return for raising the debt limit. ATR endorses this proposal and urges Members of Congress to support this plan.