POLITICS

Debt Crisis: House Passes HR 2560, The Cut, Cap and Balance Act of 2011

July 19, 2011

7:42 pm, Central

Update: 11:00 pm, Central

Diane W. Collins

dcollins@marketingweb.com

House Passes Cut, Cap and Balance HR 2560

House Passes HR 2560,

The Cut, Cap and Balance Act of 2011

After more than five hours of debate, the House passed H.R. 2560, The Cut, Cap and Balance Act 2011. The final vote was 234 to 190 with nine Republicans voting nay and five Democrats voting yea.

During the day President Obama appeared to throw his support behind a new plan quickly formulated by The Gang of Six. It is our opinion Obama is offering nothing more than rhetoric and is using The Gang of Six plan as a diversion to move the focus off pushing Cut, Cap and Balance to the Senate floor.... The Cut, Cap and Balance Act has a sister bill in the Senate, S. 1340 introduced on July 7th. If the leadership would agree, S.1340 could be pushed through the Senate and voted on within a few days. Even though President Obama has said he would veto Cut, Cap and Balance if passed by both bodies he would have some explaining to do. It is the only plan to date that fulfills all of the credit agencies requirements for maintaining the AAA credit rating of the United States. The legislation deserves it day on the Senate floor.

The Gang of Six plan mentioned earlier was pushed out Tuesday. Apparently it eliminates $1M in loopholes; reduces the deficit by $3.7T over ten years; raises revenues (taxes) and cuts Defense. Is it in writing yet? Senate Majority Leader, Harry Reid (D-NV) refused to back the Gang of Six plan but seems willing to incorporate some of its elements into the Reid/McConnell option (as McConnell Plus is now called). Reid also pointed out that if The Gang of Six plan includes revenue, which it does, it will be required to begin its legislative journey in the House. Per the Constitution, revenue bills must begin in the House of Representatives.

The only viable plan the United States has to save our credit rating and raise the debt ceiling is Cut, Cap and Balance. It cuts 2012 spending by $111B; caps spending on a sliding scale from 21.7% of GDP in 2013 to 19.9% in 2021; and calls for a balanced budget amendment to be passed by a two-third majority in Congress and ratified by the states. It has passed the House. How can Americans think the Senate is serious about addressing the debt and deficit if they don't take Cut, Cap and Balance to the floor? How can Americans think Obama is serious about the debt and deficit if he vetos this bill?

The Left continues to demagogue The Cut, Cap and Balance Act saying it hurts Social Security, Medicare and Veterans. Read the bill! They're exempted. Rep. Chris Van Hollen (D-MD) continually decried the two-third majority vote to raise revenue totally disregarding the fact that only fifty-three percent of the American people actually pay taxes. Of that number the top ten percent pay forty percent of all taxes. Forty-seven percent of the American people pay no taxes at all. Yet that forty-seven percent by a simple majority in Congress are currently capable of subjecting those who pay taxes to tax increases. Conservatives see the two-third majority requirement in Cut, Cap and Balance as a protection from "the tyranny of the masses." The Left sees it as the taxpayers cutting up their credit card. Let's get it done.

UPDATE: Both Reid and McConnell have stated to the press that the Senate will take up The Cut, Cap and Balance Act of 2011 right after H.R.2055, the Military Construction and Veterans Affairs and Related Agencies Appropriations bill which the Senate has been working on since July 13th.

Contact: Representatives, Contact: Senators

POLITICS

Debt Crisis: House Passes HR 2560, The Cut, Cap and Balance Act of 2011

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