$5.3 trillion in savings over ten years with $111 billion up-front in FY2012 represents the magnitude of fiscal reform necessary to bring the nation's budget back into balance, according to House Republican Conference Secretary John Carter.
Carter today praised H.R. 2560, The Cut, Cap, and Balance Act of 2011, and called for all House members to support the legislation on the floor even though President Barack Obama has threatened to veto the bill over the legislation's lack of job-killing tax increases.
"Regardless of whether we raise the debt limit, the value of the dollar and U.S. bonds will be severely downgraded by Moody's and S&P unless we show substantial progress and a long-term commitment on stopping the red ink," says Carter. "With this level of deficit reduction, coupled with a Constitutional amendment requiring a balanced budget in the future, we won't need to continually raise the debt ceiling because we won't need to continually keep borrowing."
Carter says Obama's threat of a veto should not stop any Member from supporting the bill, as H.R. 2560 provides the framework needed not just for the immediate debt ceiling debate, but for future legislative consideration. "With this bill, we finally have a benchmark plan for preserving our economy and honoring our commitments. If Obama succeeds in blocking this reform this week, we need to keep bringing it back until we win. Our problem is not low taxes, it is high spending, with the current President being the biggest offender in U.S. history."
HR 2560 contains no tax increases, makes no changes in Social Security, Medicare, or Veterans benefits, and allows the President to raise the debt ceiling only after a Balanced Budget Amendment has passed both the House and Senate and been sent to the states for ratification.