Cuts total spending by $111 billion in FY 2012. The savings is divided as follows:
- Reduce non-security discretionary spending below 2008 levels, which saves $76 billion.
- $35 billion cut to non-veterans, non-Medicare, non-Social Security mandatory spending.
- Defense budget at President’s level.
Total federal spending is scaled back based on the glide path for the fiscal years below:
- 2012, 22.5% of GDP.
- 2013, 21.7% of GDP.
- 2014, 20.8% of GDP.
- 2015, 20.2% of GDP.
- 2016, 20.2% of GDP.
- 2017, 20.0% of GDP.
- 2018, 19.7% of GDP.
- 2019, 19.9% of GDP.
- 2020, 19.9% of GDP.
- 2021, 19.9% of GDP.
Requires the passage of a Balanced Budget Amendment before raising the nation’s debt limit.
DEBT CEILING INCREASE CONTINGENT ON BBA
Provides for the President’s request for a debt ceiling increase if a qualifying Balanced Budget Amendment passes Congress and is sent to the states for ratification.
Q&A: The Cut, Cap, and Balance Act of 2011
How much is the first year spending cut in the “cut” portion of the bill?
- The legislation reduces spending by $111 billion in FY 2012.
Why $111 billion?
- This savings total meets the promise to enact immediate spending cuts as part of any debt ceiling bill, and would cause the deficit to finally get back down below $1 trillion next year (a reduction to the previous year’s deficit of more than $400 billion).
Does the legislation make any changes to Social Security or Medicare?
Does the legislation make any changes to veterans spending?
What does the legislation mean for defense spending?
- It is at the same level as the House-passed FY 2012 budget.
Why cap spending at 19.9% of GDP?
- This would place spending in line with average spending over the last 30 years.
What are the details of the Balanced Budget Amendment?
- The legislation would require that any Balanced Budget Amendment include the following:
- A balanced budget component;
- A super-majority requirement to raise taxes; and
- A limit on spending as a percentage of GDP.
What is the process for the debt ceiling being increased?
- Provides for the President’s request for a debt ceiling increase if a Balanced Budget Amendment passes Congress and is sent to the states for ratification.
Why $2.4 trillion debt ceiling increase?
- The President has requested that the debt limit increase by this amount. This amount is less than the amount of the spending cuts in this bill. A debt limit increase of this magnitude is a major sacrifice on the part of House Republicans, which is why it is made contingent on measures to ensure that the federal budget is permanently under control.
- Scott to colleagues: oppose balanced budget amendment (vivianpaige.com)
- Balanced Budget Amendment: How you can tell it’s just a political stunt. (slate.com)
- Republicans Say No Debt Deal Without Balanced Budget Amendment (businessinsider.com)
- RSC still fighting for a balanced budget amendment (hotair.com)
- Republicans Pressing for a Balanced Budget Fail to Deliver Details on How – Bloomberg (news.google.com)
- Senate follows suit, likely to vote soon on balanced budget amendment (hotair.com)
- GOP leaders split on when to push for balanced-budget amendment (thehill.com)
- Debt Limit: Boehner Says Cut, Cap and Balance ‘Solid Plan for Moving Forward’ (blogs.abcnews.com)
- Barack Obama: ‘The US is running out of time on debt deal’ (telegraph.co.uk)
- The Dangerous Hi-Jinks of the GOP’s Juveniles (businessinsider.com)