Today,Congressman Steve Pearce voted for S. 627 (as amended), "the Budget Control Act of 2011," which proposes a $900 billion debt limit increase, with $1.1 trillion in proposed cuts and savings.
"Our country is spending $3.5 trillion for every $2.2 trillion we take in," said Pearce. "Today's vote was a tough decision; I understand that far more work is still needed. However, I also understand the economic turmoil we face if the debt limit is reached, and this legislation is a significant step in the right direction. The American people said in November that they want a new course; they want Washington to stop spending money we don't have. Now, the House has passed two pieces of legislation to address our debt problem, and I encourage the President and the Senate to take action. And, I ask my colleagues in the House to join me in seeking more ways to protect our nation's future by eliminating the crushing burden of our national debt."
The Budget Control Act, as introduced, authorizes a two-step debt limit increase that cuts approximately one dollar of spending for every dollar of debt increase. Rep. Pearce initially expressed concerns over the plan's lack of structural changes in entitlements which must be addressed in any long-term debt solution. However, the most recent version of the bill, which was amended by Speaker Boehner this morning, added a requirement that a balanced budget amendment must pass the House and the Senate and be sent to the States for voter approval, as a condition for raising the debt ceiling a second time in January. Furthermore, S. 627 does not raise taxes, provides caps on discretionary spending over the next 10 years, and presents the only way to reform entitlement spending in the foreseeable future. While he understands that the bill is not perfect, Rep. Pearce believes that these elements make it a significant first step in the process of solving America's debt problem, while averting the impending financial crisis.
"As we move forward," explained Pearce, "job creation will be the key to truly solving our national debt problem. We need to reform the burdensome taxes and unnecessary regulations that are preventing small businesses across America from creating the jobs we need. Only by putting Americans back to work can we hope to truly solve our debt crisis."
Rep. Pearce has been in active communication with constituents on the debt limit issue through town hall meetings, email surveys, Facebook, and other interactions. Yesterday, he reached out to 40,000 New Mexicans through a telephone town hall meeting to seek further input. The vast majority of constituents on the call favored the House's "Cut, Cap, and Balance" plan that Rep. Pearce voted for last week, which would have forced a balanced budget amendment to be passed and sent to the states.
The Budget Control Act would require Congress to vote on another debt ceiling increase in January, making spending a pivotal discussion in the next Presidential election.