Senate rejects balanced budget plans

Wednesday, December 14, 2011

Senate rejects balanced budget plans

By:  Scott Wong, Politico

The Republican plan, authored by the Senate Finance Committee's top Republican, Orrin Hatch of Utah, failed on a straight party-line 47-53 vote, falling 20 votes shy of the two-thirds threshold required to change the Constitution. The entire GOP Conference backed the amendment, while Democrats were united in their opposition.

The Democratic plan, authored by Sen. Mark Udall of Colorado, was defeated by a wider margin - on a 21-79 vote - largely because most Democrats, led by Senate Majority Leader Harry Reid, opposed the idea of such an amendment. Sen. Dean Heller (R-Nev.) joined 20 Democrats, several facing tough reelections next year, in voting "yes."

Even if an amendment had been passed by Congress, it still would have needed to be ratified by three-fourths of state legislatures. The White House opposed both proposals, stating that a constitutional amendment wasn't needed "to do the job of restoring fiscal discipline."

"The president has proposed a plan that cuts the deficit by $4 trillion, including the deficit reduction already locked in by the Budget Control Act, and the administration is committed to working with the Congress on a bipartisan basis to achieve real deficit reduction," the White House said in a Statement of Administration Policy.

But with the nation's debt now topping $15 trillion, Republicans have spent the past year pressing for a balanced budget amendment, similar to the one that cleared the House and fell one vote shy of passing the Senate 15 years ago.

"If spending were a drug, Congress would be an addict," Hatch said in a floor speech before the votes. "An addict ignores the evidence and denies he has a problem. An addict claims over and over that he can stop his addictive behavior any time he wants. But like a real addict, Congress cannot kick the habit on its own. Congress needs help."

The Hatch plan would have required Congress to balance its budget each year unless two-thirds of members in both chambers agreed to a deficit. It also called for an 18 percent spending cap and a supermajority in both houses to hike taxes or raise the debt limit. There are some exceptions for running a deficit during times of war.

The Udall alternative would have required a balanced budget each year unless three-fifths of members in both chambers voted to waive it for national emergencies. It also could be waived during a military conflict. But it would have barred Congress from providing income tax breaks for millionaires or tapping into the Social Security Trust Fund to balance the budget.

Democrats charged that the GOP plan was overreaching, while Republicans said the Democratic plan didn't go far enough.

"The Democratic alternative allows Congress to continue doing exactly what has caused this crisis in the first place," Hatch said. "It allows members of Congress committed to a tax-and-spend philosophy to continue sending taxpayer dollars to special interests at the expense of the general fiscal health of this country.

"A so-called solution that continues to enable out-of-control spending is no solution at all," he said.

Following Hatch on the floor, Udall shot back that the GOP plan provided "unrealistic limitations" on the government that could harm worker retirement accounts, undermine national defense and protect special interest tax breaks.

Hatch's proposal "would turn our Constitution into a document that protects every special tax deal that has been successfully lobbied for over the years," Udall said. "That is not what our constituents - hard working Americans - expect from a balanced budget amendment."

Among those who voted for the Udall plan were a handful of vulnerable 2012 Democrats: Sens. Joe Manchin of West Virginia, Claire McCaskill of Missouri, Ben Nelson of Nebraska, Bill Nelson of Florida and Jon Tester of Montana.

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