(Alexandria, VA) – On the evening of Tuesday July 19th, in a significant victory for taxpayers and citizens concerned with thefiscal stability of the United States, the U.S. House of Representatives passedthe “Cut, Cap, and Balance” bill by a 234-190 vote. This legislation would raise the debtceiling, but only after enacting immediate spending reductions, a statutory capon expenditures, and a Balanced Budget Amendment to the Constitution that wouldmake deficits rarer. The 362,000-member National Taxpayers Union (NTU) praisedpassage of the measure as the only long-term solution to America’s budgetcrisis.
NTU Vice President of Government Affairs Andrew Moylanoffered the following comments:
Cut, Cap, and Balance is the only comprehensivesolution on the table that will actually rein in unsustainable debt, and changeour nation’s course to avoid the prospect of a crippling fiscal crisis in thefuture. It includes not only the short-term spending reductions and guidelines necessaryto avert a debt disaster, but the long-term reform needed to maintain fiscal security,grow the economy, and create jobs.
In passing such a powerful measure,the House has taken concrete action to begin fixing the federal budget and seta strong example for the Senate.
Cut, Cap, and Balance is tightlyfocused on the cause of our debt disaster: overspending. Even if we extend thetaxpayer relief measures of 2001 and 2003 and patch the Alternative MinimumTax, revenue is on track to equal its historical average of 18 percent of theeconomy in just a few years. Meanwhile, the President’s budget outline foreseesspending that never dips below 22 percent of the economy, well above itshistorical average of about 19.6 percent. Even scarier, the CongressionalBudget Office projects that spending will skyrocket to upwards of 30 percent ofthe economy, a level as unsupportable as it would be unprecedented for ournation.
Those pushing proposals to reduce deficitsby raising taxes are wrongly focused on symptoms, rather than our true disease:a bloated and unaffordable federal government.
We urge the Senate to takeadvantage of the momentum “Cut, Cap, and Balance” has gained after passing theHouse, and immediately schedule and support a vote on the legislation in theirchamber. NTU and its coalition allies will make every effort in the coming daysto ensure success, and bring America one step closer to fiscal stability.
The National Taxpayers Union is a founding member of the“Cut, Cap, and Balance” coalition comprised of more than 200 activist groups,and signed on to by more than 190,000 Americans. For over 30 years, NTU hasworked to pass a Balanced Budget Amendment to the Constitution, and for similarlegislation throughout state governments.
The362,000-member NTU is a nonpartisan, nonprofit organization working for lowertaxes, smaller government, and economic freedom at all levels. More informationon NTU’s work, is available at www.ntu.org.