Rep. Howard P. “Buck” McKeon today made the following statement regarding the upcoming vote on H.R. 2560, the Cut, Cap and Balance Act, introduced by House Republicans to address the debt limit debate:
“Though the debt limit has been arduously debated and discussed in the House and throughout Washington we all know that the real stakes and greater difficulties lay at home," he said.
"As unemployment lingers at over 9% and many Americans are finding it hard to put food on the table and keep lights on in the house, it seems ridiculous for the federal government to continue borrowing money and mortgaging our country’s future. That is why I am supporting ‘Cut, Cap, and Balance,’ a measure to cut $111 billion from federal spending by October 1st, cap the percentage of debt held compared to the GDP, and pass the Balanced Budget Act.
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“The Cut, Cap and Balance Act will reign in irresponsible and inefficient government spending, cap our spending levels at a reasonable mark, and balance our budget not only for the short term benefits of a stable economy, but for the future security of our children and grandchildren. We propose to do this in such a way that we do not impose higher taxes on the American people that hurt ultimately private industry and hinder the businesses we count on to lower unemployment.
“The President, who only recently stepped into the arena to seriously talk about debt reduction, states that he wants to do big things. Republicans in Congress are doing big things. With this bill we are asking the President and our Democratic counterparts to work together, tackle the big problems, and get our fiscal house in order.”
The Cut, Cap, and Balance Act of 2011 - Courtesy of Representatives Jason Chaffetz (R-UT), Mick Mulvaney (R-SC), and Reid Ribble (R-WI)
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 Balanced Budget Amendment before raising the nation’s debt limit.
DEBT CEILING INCREASE CONTINGENT ON BBA
Provides for the President’s request for a debt ceiling increase if a qualifying Balanced Budget Amendment passes Congress and is sent to the states for ratification.