FYI - I thought you might be interested in this explanation of the latest debt limit bill...
BY THE HOUSE REPUBLICAN CONFERENCE:
House Republicans have again offered a common-sense plan that rejects the president’s insistence for a blank check to pay the credit card bills that he has run up over the past two and a half years. President Obama’s unwillingness to address the true drivers of our debt assured that we could not achieve a true solution to the debt crisis we are facing.
The Budget Control Act of 2011 is not the ultimate solution to our nation’s spending-driven debt crisis, but it accomplishes what we’ve been working for since day one: it will reduce spending more than we increase the debt limit; it imposes no new taxes on anyone; and it guarantees House and Senate passage of a balanced budget amendment before any additional debt limit increase.
1. Guarantees Passage of the Balanced Budget Amendment for Additional Debt Limit Increase: Fifteen years ago, the BBA passed the House with bipartisan support, only to lose by one vote in the Senate. Since then, the debt has grown by $9.2 trillion. The BBA is a game-changer - the ultimate solution to our nation’s fiscal crisis. This bill ensures that a BBA will be sent to the states for ratification—before the second debt limit increase occurs.
- The Budget Control Act requires the House and Senate to pass balanced budget amendment before the second debt limit increase occurs. This will force each member of Congress to show his or her constituents if they believe Washington should spend money it doesn’t have.
2. Avoids a Default on Current Obligations: Most Americans believe that people – and Congress – should pay their bills. If the debt ceiling is not raised, at some point, obligations of the federal government will go unpaid. Failure to meet these obligations will cause even more economic harm that the Obama administration has already done. Further uncertainty could lead to an increase in interest rates, which would hurt small businesses and families by increasing the rates on small business loans, credit cards, mortgage rates, car loans, and student loans.
- The Budget Control Act would cut and cap discretionary spending immediately, cutting $22 billion in spending next year, and saving $917 billion over ten years, and raise the debt ceiling by less – up to $900 billion – in order to avoid default.
3. Rejects Calls for Job-Killing Tax Increases: President Obama seems to be the only one in town still talking about tax hikes. Our debt crisis is a result of Washington spending too much, not taxing or borrowing too little. Raising taxes on job creators will cause even more harm - controlling spending must be the solution.
- The Budget Control Act includes no tax hikes, and ensures that if tax hikes are a part of any negotiations for a future debt limit increase, the House can easily vote it down.
4. Cuts More Than It Hikes: House Republicans have been clear that to pass the House, any debt limit increase must be accompanied by spending cuts that exceed the amount of the debt limit hike. No more blank checks for President Obama – any new debt increase will have to be met with even more cuts.
- The Budget Control Act also 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, in addition to a Balanced Budget Amendment being sent to the states. Each Chamber would consider the proposal of the Joint Committee on an up-or-down basis without any amendments. If the proposal is enacted and a Balanced Budget Amendment is sent to the states, then the president would be authorized to request a debt limit increase of $1.6 trillion.
5. Changes Washington’s Spending Culture: In just seven months, House Republicans are already changing the trajectory of federal spending and actually shrinking a federal government that has done nothing but expand for the past 40 years. We passed the Path to Prosperity budget. We passed Cut, Cap and Balance. We have led the fight for controlling spending and saving our children and grandchildren from national bankruptcy and this bill will ensure that a Balanced Budget Amendment is sent to the states.
- For the first time in the history of modern federal budgeting, House Republicans will cut discretionary federal spending for two straight years. Analysis by the House Budget Committee shows the GOP
Budget Control Act achieves roughly 66 percent of the discretionary spending cuts in the House-passed budget.
