Dear Member of Congress:
On behalf of the362,000 members of the National Taxpayers Union (NTU), I urge you to supportH.R. 2560, the “Cut, Cap and Balance Act.” Introduced by Reps. Chaffetz (R-UT),Mulvaney (R-SC) and Ribble (R-WI), this bill embodies the general principles ofthe Cut, Cap and Balance coalition by cutting $111 billion in spending nextyear, enacting a statutory cap on expenditures, and allowing for a $2.4trillion increase in the debt ceiling that would only go into effect ifCongress passes and submits a Balanced Budget Amendment to the states forratification.
Regardless ofthe political lens through which the trajectory of federal spending and debt isviewed, the current fiscal course is clearly unsustainable. Washington’s profligatespending habits have led to a deficit of roughly $1.6 trillion this year, afigure about equal, in inflation adjusted terms, to the entire federal budget of 1982. These annual imbalances are quicklypushing debt as a share of Gross Domestic Product to dangerous levels. Underits most realistic policy scenario, the Congressional Budget Office predictsthat debt held by the public will exceed 100 percent of GDP by 2021, will speedpast its historical peak of 109 percent by 2023, and would approach 190 percentby 2035.
Credit ratingagencies have taken note of this fiscal recklessness. Moody’s Investors Servicehas threatened to downgrade our current “AAA” rating “unless substantial andcredible agreement is achieved on a budget that includes long-term deficitreduction.” Likewise, Standard & Poors has said that to maintain our creditrating policymakers must not only prevent a “near-term default” but also must“materially improve” our debt situation for the years ahead.
The Cut, Cap andBalance Act is the comprehensive solution necessary to maintain America’ssterling bond rating and enable our economy to return to prosperity. Thisapproach combines immediate, modest program cuts, a statutory spending cap toreduce spending nearer to historical norms within the next several years, and arobust Balanced Budget Amendment to keep deficits under control for the longhaul. These structural changes provide the necessary framework to put an end toWashington’s obstinacy and ensure the long-overdue adjustments to expendituresare finally made. In doing so, this billeschews the stance taken by other debt limit plans to prioritize electoralcalculations over substantive policy changes to reduce future pressures forborrowing. Taxpayers are not interested in complex gimmickry, procedural ploys,or too-clever-by-half attempts to place blame; they demand real changes toWashington’s unsustainable budgetary habits.
NTUurges all Members of Congress to strongly support the Cut, Cap and Balance Act.Only through its budget-process reforms will we be able to stabilize and reducethe debt – which are the absolute preconditions for America to escape its’economic woes. Roll call votes on H.R.2560 will be among the most heavily-weighted of the year in our annualRating of Congress.
Sincerely,Brandon GreifeFederalGovernment Affairs Manager