Conservatives in the U.S. House of Representatives are under tremendous pressure to compromise on a debt ceiling increase. Last week, House Republicans offered a solution to the crisis called “Cut, Cap, and Balance.” Unfortunately, the plan was tabled in the Senate. Now House and Senate leaders are scrambling to come up with new proposals. There are a few key elements an acceptable proposal must have if we want to save the country from crushing debt:
It must contain significant spending cuts and not just accounting gimmicks.
It cannot raise revenue. We are already over-taxed. Raising taxes even more will stifle the economy.
Entitlement spending must be addressed.
So far, the only plan offered that meets these requirement Cut, Cap and Balance. We cannot allow this country to continue down the same road of out of control spending. Our future is at stake. Please call your Senator and Representative and ask them to hold the line on the debt ceiling deal. Any plan without real spending cuts and with increased revenues is not
Senator Mitch McConnell has unveiled a proposal to give President Obama the power to raise the debt limit on his own by $2.4 trillion in three installments before the end of 2012–unless two-thirds of Congress votes to block it.
Senator McConnell’s proposal will undermine everything conservative Republicans have been working for in regard to spending cuts. The GOP was using the debt ceiling as leverage to get the President and Congress to agree to significant cuts in spending, including entitlement programs. The last thing we need to do is give President Obama the unfettered power to continue to spend us into oblivion and Senator McConnell’s proposal does not give us any real protection against that eventuality.
And that’s not all–Senator McConnell’s proposal comes out ahead of next week’s vote on a Balanced Budget Amendment. The amendment would put the U.S. on a path to reduce the federal deficit. Moody’s Investor Service has been very clear that a reduction is necessary to maintain our current credit rating. Their response to the McConnell proposal was not positive:
“the outlook assigned at that time to the government bond rating would very likely be changed to negative at the conclusion of the review unless substantial and credible agreement is achieved on a budget that includes long-term deficit reduction. To retain a stable outlook, such an agreement should include a deficit trajectory that leads to stabilization and then decline in the ratios of federal government debt to GDP and debt to revenue beginning within the next few years.”
So what can you do to stop Senator McConnell’s attempt to give President Obama an unlimited line of credit?
1. Call Senator McConnell’s office along with your Senators and Representatives and ask them not to give President Obama the authority to raise the debt limit.