Obama, finally, appears to get serious about $14.3 trillion debt

After rejecting two invitations by the Senate Republican Leader, Senator Mitch McConnell, to come to Capitol Hill to work on the debt ceiling crisis  --  and probably because of the invitations  --  it appears that Barack Obama is finally getting serious about doing something about the crushing debt in this nation. Today, Obama  --  in his usual partisan manner  --   invited the congressional leaders to the White House on Thursday and effectively demanded that the Republicans accept his tax increase proposals.

The nearly 200-strong conservative Republican Study Committee in the United States House of Representatives, chaired by Congressman Jim Jordan from Ohio, came up with an idea called Cap, Cut and Balance and they have introduced legislation to enact these ideas.  They have also rejected any tax increases in the final debt ceiling deal.

The Republican Study Committee (RSC) put out this statement regarding the cut spending portion of the Cut, Cap and Balance proposal:  "With the national debt now over $14 trillion, Congress must act swiftly to cut spending. That is why members of the RSC have proposed new legislation that would make substantial spending cuts immediately and throughout the next decade. The Spending Reduction Act of 2011, H.R. 408, is a $2.5 trillion head start in the race to resolve the growing debt crisis and preserve the American Dream.  Companion legislation, S. 178, has been introduced in the Senate by Sen. Jim Demint (R-SC)."

The RSC put out this statement regarding the cap spending portion of the Cut, Cap and Balance plan:  "The United States does not have a revenue problem, it has a spending problem.  Every dollar the federal government takes out of the American economy is a dollar that cannot be used by American companies and entrepreneurs to create jobs and economic growth.  That is why the RSC and its members are working on several options to establish statutory, enforceable caps to align federal spending with average revenues at 18% of GDP."

  • Returning to Responsible Fiscal Policies Act (H.R. 2041) Sponsor: Rep. Jack Kingston (GA-01) 
  • One Percent Spending Reduction Act (H.R. 1848) Sponsor: Rep. Connie Mack (FL-14)

Finally, with regards to the third part of the Cut, Cap and Balance proposal, the RSC says this:  "Congress' past failure to produce balanced budgets is a major cause of today's fiscal crisis.  It is time that Congress accepts a limit on its runaway spending, and joins the 49 states which govern with a balanced budget requirement.  A balanced budget amendment that fundamentally reforms the way Washington budgets and spends must include protections against federal tax increases and a cap on federal spending to GDP, as discussed here."

The Republicans have made it clear to the president, and his party, that they will not accept his proposal to increase taxes by a whopping $400 billion.  Indeed, the November 2010 landslide election victory for the Republicans was a mandate to cut trillions of dollars of government programs and to stop any tax increases proposed by the Democrats.  Directly below, is the press release put out by Congressman Jordan's Republican Study Committee:

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RSC Update: No Debt-Ceiling Increase without Cut, Cap, and Balance

After celebrating Independence Day, I am reminded once again what our Founding Fathers intended for America. In the Declaration of Independence they set the framework for the American Dream. And this dream did not include a government that unfairly taxes and regulates citizens and private enterprises because of its failure to live within its means.

After focusing for the last few months on a $2 trillion or more debt limit increase, some in Washington are now talking about a smaller increase to buy another seven months or so. I believe Washington must show some discipline for once. Cuts promised today could become spending increases tomorrow unless we pass a Balanced Budget Amendment to the Constitution. As a growing number of Americans have pledged, I will not consider any debt-ceiling increase – regardless of the size – without immediate cuts, enforceable caps on spending, and a Balanced Budget Amendment being sent to the states.

God Bless,

Congressman Jim Jordan
Chairman, Republican Study Committee

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