Monday, July 25, 2011

THE LATEST ON THE DEBT CRISIS TALKS

**Just received this via iPhone from Andrea Shea King. Andrea is inflight back to the Space Coast from an engagement over the weekend in NYC. She'll be talking about her trip and the debt crisis as well on tonight's Andrea Shea King Show--9 PM ET.

Speaker Boehner, GOP Leaders Outline Two-Step Approach to Cut Spending, Avoid Default

WASHINGTON, DC – House Speaker John Boehner (R-OH) issued the following statement on the two-step approach for cutting spending and preserving the full faith and credit of the United States that GOP leaders discussed with their Republican colleagues today:
“Republicans have put forward a responsible, common-sense proposal that meets our obligations to the American people and preserves the full faith and credit of the United States. This plan is far from perfect, but it adheres to our principles of ensuring that spending cuts are greater than any debt hike and it includes no tax increases. Importantly, it reflects the principles of ‘Cut, Cap, and Balance.’
“Time is running short and it would be irresponsible for the President to veto this common-sense plan and run the risk of default. I would encourage the Senate to pass this plan and the President to sign it.”
NOTE: This two-step approach outlined by GOP leaders today will (1) make spending cuts that are larger than any debt ceiling increase; (2) implement spending caps to restrain future spending; and (3) advance the cause of the Balanced Budget Amendment – without tax hikes on families and job creators. Here is more information on the plan:
  • Cuts That Exceed The Debt Hike. The framework would cut and cap discretionary spending immediately, saving $1.2 trillion over 10 years (subject to CBO confirmation), and raise the debt ceiling by less – up to $1 trillion.
  • Caps To Control Future Spending. The framework imposes caps on discretionary spending that would establish clear limits on future spending and serve as a barrier against government expansion while the economy grows. Failure to remain below these caps will trigger automatic across-the-board cuts (otherwise known as sequestration).
  • Balanced Budget Amendment. The framework advances the cause of the Balanced Budget Amendment by requiring the House and Senate to vote on the measure after October 1, 2011 but before the end of the year, allowing the American people time to build sufficient support for this popular reform.
  • Entitlement Reforms & Savings. The framework creates a Joint Committee of Congress that is required to report legislation that would produce a proposal to reduce the deficit by at least $1.8 trillion over 10 years. Each Chamber would consider the proposal of the Joint Committee on an up-or-down basis without any amendments. If the proposal is enacted, then the President would be authorized to request a debt limit increase of $1.6 trillion.
  • No Tax Hikes. The framework includes no tax hikes, a key principle that Republicans have been fighting for since day one.
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Two-Step Approach to Hold President Obama Accountable Posted by Speaker Boehner's Press Office on July 25, 2011
All year long, House Republicans have led on the serious issues facing our country and set the terms of the debate over the debt limit. Republicans insisted if the President wants his debt ceiling increase, the American people will require serious spending cuts and reforms. This framework, while far from perfect, meets House Republicans’ criteria by (1) making spending cuts that are larger than any debt ceiling increase; (2) implementing spending caps to restrain future spending; and (3) advancing the cause of the Balanced Budget Amendment – without tax hikes on families and job creators. While this is not the House-passed “Cut, Cap, & Balance,” it is a package that reflects the principles of Cut, Cap, & Balance.
The framework outlines a two-step approach that would hold President Obama accountable and certify government spending continues to be cut as the debt ceiling is raised, despite the President’s demand for a $2.4 trillion debt limit increase all at once -- without spending cuts that exceed the hike. Here is more information on the plan:
CUTS THAT EXCEED THE DEBT HIKE
The framework includes spending cuts that would exceed the amount of the increased debt authority granted to the President. The framework would cut and cap discretionary spending immediately, saving $1.2 trillion over 10 years (subject to CBO confirmation), and raise the debt ceiling by less up to $1 trillion to approximately February. Congress must vote to cut spending FIRST. Then, the President may ask for debt authority of up to $1 trillion, which will be subject to a vote of disapproval by the House and Senate that can be vetoed by the President.
CAPS TO CONTROL FUTURE SPENDING
The framework imposes spending caps that would establish clear limits on future spending and serve as a barrier against government expansion while the economy grows. Failure to remain below these caps will trigger automatic across-the-board cuts (otherwise known as sequestration). This is the same mechanism used in the 1997 Balanced Budget Agreement.
BALANCED BUDGET AMENDMENT
The framework advances the cause of the Balanced Budget Amendment by requiring the House and Senate to vote on the measure after October 1, 2011 but before the end of the year, allowing the American people time to build sufficient support for this popular reform.
ENTITLEMENT REFORMS & SAVINGS
The framework creates a Joint Committee of Congress that is required to report legislation – by November 23, 2011 – that would produce a proposal to reduce the deficit by at least $1.8 trillion over 10 years. The committee would be made up of 12 members, three each appointed by the Speaker, House Minority Leader, Senator Majority leader and Senate Minority Leader. Co-chairs will be chosen by the Speaker and Senate Majority Leader. Each chamber would consider the proposal of the Joint Committee on an up-or-down basis without any amendments. It would not be subject to filibuster in the Senate. If the proposal is enacted, then the President would be authorized to request a debt limit increase of $1.6 trillion. The goal of the committee would be to produce legislation that reforms entitlement programs like Medicare, Medicaid, and Social Security, protect them from bankruptcy, and put them on a sounder financial footing.
NO TAX HIKES
The framework includes no tax hikes, a key principle that Republicans have fought for since day one

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