With the significant strengthening ofthe Budget Control Act of 2011, the National Taxpayers Union (NTU) is now ableto offer its conditional support of the legislation. By requiring passageof a Balanced Budget Amendment (BBA) to our Constitution before any approval ofthe second portion of a debt ceiling increase may occur, this bill nowrepresents a minimally acceptable compromise.
NTU previously opposed the billbecause we felt it did not live up to the three principles established by the“Cut, Cap, and Balance” Coalition in which our members have been so active. Itincluded some cuts to spending next year and expenditure caps moving forward,but by calling for a mere vote on a BBA the bill offered no assurance totaxpayers that permanent structural reforms would be tied to the issuance oftrillions of dollars in new debt. Fortunately, a substantial portion ofCongress agreed with that sentiment. But by linking the second “tranche” of thedebt limit hike to passage and submission to the states of a Balanced BudgetAmendment to our Constitution, this new version finally addresses that thirdprinciple to an extent where it no longer conflicts with NTU’s most importantgoal of permanent, constitutional taxpayer protections.
To be clear, our concerns with therelatively small expenditure reductions and modest spending caps remain, asdoes our opposition to potential tax increases from the Joint Select Committeethe bill would establish. However, it is a testament to the enormous andunparalleled impact of a durable, structural reform like a Balanced BudgetAmendment that we are now able to put those objections in a different, lessstrenuous perspective.
This plan is far from ideal and,indeed, Congress will likely need to pursue further spending reductions andreforms to avoid a damaging downgrade of our AAA credit rating. Much like thetax cut compromise we supported with serious reservations last December, thisbill represents a delicate balance and we believe that the strengthening of theBBA language tips the scales in favor of the legislation in a way that was notpossible for NTU in the bill’s previous iteration. The end product may not bewhat we would have drafted, but it represents satisfactory progress fortaxpayers.
NTU supports the new version of theBudget Control Act of 2011. A “YES” vote will be considered the pro-taxpayerposition in our annual Rating of Congress.
If you have any questions, please contact NTU Vice President of Government Affairs Andrew Moylan at(703) 683-5700