Stop business as usual:
Any proposal that increases the debt ceiling must include historic reforms that will save the American dream for our children and grandchildren.
It must: cut current spending, restrict future spending, and fix the budget process.
Cut, Cap and Balance is the only plan on the table that meets this test.
In order to achieve reforms of this magnitude, Congress must do everything possible to eliminate the uncertainty surrounding Treasury Secretary Timothy Geithner’s August 2 deadline. Congress cannot negotiate with a clear mind if the administration is constantly invoking the specter of default. As Heritage Foundation economist J.D. Foster, Ph.D. points out:
Both immediately and long after it reaches the debt limit, the government would have far more than enough revenue coming in that the Secretary of the Treasury could use to pay interest on the debt. Nor would preserving the current debt limit put at risk the full faith and credit of the United States government, as the President’s chief economic adviser has claimed. The government would continue to pay net interest as it comes due.
In the event that liberals will not allow us to raise the debt ceiling because they cannot stomach substantive, systemic changes to put the country back on sound footing, conservatives must develop a responsible plan. Congress must exercise their constitutional power of the purse, building upon the framework of the Toomey-McClintock legislation, and prioritize federal spending.