Congressman Steve Chabot

Cut, Cap, and Balance Act: A Commonsense Solution to Washington's Spending Addiction

As Washington continues to debate the debt limit this week, it’s important to remember one point.  Hitting the debt limit is just a symptom of the real problem – we spend too much and have too much debt.  If the debt limit is raised without real changes in spending, S&P and Moody’s have warned the U.S. may still lose its AAA credit rating. A downgrade could raise interest rates, weaken the dollar, and cause our debt to grow even faster.

The only plan that can actually solve our debt problems is Cut, Cap, and Balance.  So I am very pleased that tomorrow, the House will vote on H.R. 2560, the Cut, Cap, and Balance Act of 2011.  After implementing real cuts and caps on spending, this legislation says that the President’s request for a debt limit increase will only be honored after the House and Senate have passed a Balanced Budget Amendment.  The “balance” provision is the most important part. Without it, cuts today can easily disappear tomorrow.

A Balanced Budget Amendment would force Washington to live within its means and allow us to pay down the debt. That means less government, lower taxes, and more jobs, especially for the next generation, whose futures have been mortgaged by the national debt to the tune of $46,000 each.  The Cut, Cap, and Balance Act is the plan this country needs.

Historical Increases in the debt limit

The chart below shows increases in the debt limit in comparison with the national debt broken down my presidency. The current President is spending at a rate that is unprecedented in our nation's history and giving him a new credit card is not the answer.

Chart courtesy of Cato@Liberty

Read the Speaker's take on debt-ceiling talks

 "My message to the White House over the last several months has been real simple: the spending cuts have to be larger than the increase in the debt ceiling. Secondly, there are no tax increases on the table. And thirdly, we have to have real controls in place to make sure this never happens again. Real controls like a Balanced Budget Amendment..." Read More.