Congressman Mo Brooks (R-AL) announced today that he will be an original co-sponsor of the Cut, Cap, and Balance Act of 2011. The bill, which is scheduled to be filed today and voted on next week, will eliminate America's unsustainable deficit crises through immediate spending cuts, capping federal spending, and balancing the budget through a constitutional amendment sent to the states.
Congressman Brooks said, "This Cut, Cap, and Balance Act is a huge victory for conservatives, the freshman congressional class, and the American people. Every American family has to balance their budget, and the American people are asking us to hold the federal government to the same standards. We must stop spending more than we take in.
Congressman Brooks continued, "Some claim that job-killing tax increases are the solution to America's financial crises. They are wrong. Federal government spending has gone up more than 40% since Barack Obama arrived in Washington as a U.S. Senator in 2005. Just as a spending binge has been the cause of America's unsustainable budget deficits, cutting spending must be the answer.
Congressman Brooks concluded, "The Cut, Cap, and Balance Act is a stop sign on the road to overspending. If this bill passes through the House and Senate, the President will have the opportunity to make good on his words not to kick the can further down the road. So far, his proposals are doing just that: delaying the hard decisions until 2013, when we will be trillions of dollars deeper in debt and America's financial crises will be much, much worse. It's time for Congress and the White House to solve America's unsustainable deficit and accumulated debt problem once and for all before it is too late and our debt destroys our country."
The Cut, Cap, and Balance Act is sponsored by Congressman Jason Chaffetz (R-UT).
Cut, Cap and Balance Act specifics:
1. There is no debt ceiling increase until Congress passes a Balanced Budget Constitutional Amendment that, at a minimum: (a) requires a balanced budget, (b) requires at least a 60% vote in the House and Senate to raise taxes, and (c) limits federal government spending to a percentage of America's Gross Domestic Product. It is likely that the Balanced Budget Constitutional Amendment will have opt-out provisions in time of (a) declared wars, or (b) when required after a supermajority vote of House and Senate members.
2. Imposes statutory spending cuts that limit federal government spending (which is now 23% of GDP) to 20.5% of GDP in 2015, 18.5% of GDP in 2020, and 18% of GDP in 2021 and each year thereafter. America's past 30-year federal government spending average has been 18% of GDP.
3. In FY 2012: Cuts spending by $111 billion (compared to actually FY 2011 spending levels); keeps national defense at FY 2011 spending levels; and disallows any cuts to Medicare, Social Security, or Veterans benefits.
4. Increases the debt ceiling by $2.4 trillion (an amount abhorred by Republicans, but the amount President Obama requires "in order to get past the 2012 elections").