07.18.2011 0

Cut, Cap, and Balance Is The Only Way

MEMO FOR THE MOVEMENT

Cut, Cap and Balance is the only plan that actually cuts the deficit, caps federal spending and requires passage of a Balanced Budget Amendment to the U.S. Constitution.

RE: A proposal by Senators Lee, Toomey and 30 others in the U.S. Senate and Congressmen Jordan, Chaffetz and over 80 others in the U.S. House to insure any increase in the debt ceiling only occurs if substantial cuts in spending, enforceable spending caps are enacted and a Balanced Budget Amendment to the U.S. Constitution is sent to the states for ratification.

ISSUE-IN-BRIEF: President Obama has not offered a plan to reduce the deficit and control spending. The Democrats in the Senate have not passed a budget in two years. The interest alone on the more than $14 trillion debt is over $1billion per day, and the national debt is growing about $3 billion per day.

CUT CAP and BALANCE:

“Cut.” Means substantial cuts in spending that will reduce the deficit next year and thereafter. Congress would have to place significant cuts on the table as part of any legislation increasing the debt limit.

“Cap.” Means enforceable spending caps that will put federal spending on a path to a balanced budget. The Balanced Budget Amendment (BBA) has enforceable spending caps, yet they will not kick in until the BBA is passed by both chambers of Congress (with a 2/3rds vote) and ratified by the States. This necessitates a budget reform that implements an immediate spending cap.

“Balance” Means adopting the Hatch-Lee BBA that is supported by all 47 Republican Senators. This version of the BBA includes both a spending limitation and a super-majority for raising taxes, in addition to balancing revenues and expenses.” Congressional passage is necessary before the debt limit is allowed to increase.

“Of course, the best way to permanently reduce spending would be to enact a balanced-budget amendment to the Constitution requiring a supermajority in both houses of Congress to run an annual deficit, raise tax rates, or increase the debit ceiling.”

James A. Baker III, Ronald Reagan’s Secretary of the Treasury from 1985-1988

FOR MORE INFORMATION ON CONSTITUTIONAL CONSERVATISM VISIT: WWW.THEMOUNTVERNONSTATEMENT.COM

For Additional Information on the Cut, Cap and Balance effort please click on the links below:

http://cutcapbalancepledge.com

http://www.forbes.com/2011/07/08/cut-cap-balance_print.html

http://www.cleveland.com/opinion/index.ssf/2011/07/how_to_solve_our_debt_woes_by.html

http://dailycaller.com/2011/07/06/cut-cap-and-balance-the-debt-solution-america-needs/print

http://www.usnews.com/opinion/blogs/peter-roff/2011/07/14/after-blinking-republicans-unite-on-deficit

http://politics.blogs.foxnews.com/2011/07/04/cut-cap-and-balance-pledge-gains-traction

http://www.bellinghamherald.com/2011/07/07/v-print/2091920/a-balanced-budget-amendment-is.html

http://online.wsj.com/article/SB10001424052702304186404576389520633008878.html

http://www.redstate.com/erick/2011/06/28/pledge-fatigue