At a time when our government borrows 40 cents out of every dollar that it spends and our debt is more than $14 trillion, House Republicans are committed to ending the Democrats’ failed economic policies that have stalled economic growth and job creation. Today, the House will vote on the Cut, Cap and Balance Act; our balanced plan to meet the President's request for a debt limit increase while achieving serious spending cuts, binding budget reforms, and putting in place a balanced budget amendment to ensure we don't continue to kick the can down the road. By passing this common sense plan to eliminate wasteful spending and manage down our debt, Washington can spur economic growth and provide American families and businesses with the opportunity to return to prosperity.
Today In History: In 1799, during Napoleon Bonaparte's Egyptian campaign, a French soldier discovered a black basalt slab inscribed with ancient writing near the town of Rosetta. The irregularly shaped stone, that came to be known as the Rosetta Stone, contained fragments of passages written in three different scripts: Greek, Egyptian hieroglyphics and Egyptian demotic. More startlingly, the Greek passage announced that the three scripts were all of identical meaning. The artifact thus held the key to solving the riddle of hieroglyphics, a written language that had been "dead" for nearly 2,000 years.
Birthdays: Rep. John Campbell, Stuart Scott, Anthony Edwards, and Brian May
Here is what's in today's Ledger ...
State Of Play: House To Vote On Cut, Cap and Balance Today
- Cut: Based on CBO’s March baseline, the Cut, Cap and Balance Act saves $111 billion in 2012 and around $5.8 trillion over ten years.
- Cap: Enforceable caps on spending will bring the size of government back below 20% of GDP to its average level over the last 30 years. Breaking the caps triggers automatic spending cuts.
- Balance: The legislation grants President Obama’s request for an increase in the debt limit, but only after Congress has cut up the credit cards by passing a Balanced Budget Amendment.
Leader Cantor: The President Hasn’t Put Forward A Plan That Can Pass The House, He Shouldn’t Simply Dismiss CCB. "As President Obama has not put forth a plan that can garner 218 votes in the House, I'd caution him against so hastily dismissing 'Cut, Cap and Balance,'" said Cantor. The Associated Press
- Chairman Hensarling CCB Will Force President Obama To Stop Spending Money We Don’t Have: "I find it incredibly ironic that President Obama is one of the few Americans who think we don't need a constitutional amendment 'to do our jobs.'" Said Rep. Jeb Hensarling of Texas, a member of the leadership. "The point of cutting up the credit cards in order to raise the debt ceiling isn't to meet his tax-and-spend demands; it's to force him to stop spending money we don't have." The Associated Press
Kudlow: Cut, Cap and Balance Is The Best Option Forward. Next up is cut, cap, and balance ... This is my preferred option right now. The burden of government on the economy would be reduced from roughly 24 percent to 20 percent. That narrows the wedge between work and reward. It strengthens private market resources by curbing government redistribution. ... Other accounts of cut, cap, and balance use the Paul Ryan fiscal-year 2012 spending cut of $110 billion. That would be a home run. It would come to $5.8 trillion over ten years and would certainly satisfy the credit-rating agencies. In other words, the GOP House plan is far better from a rating-agency standpoint than any other plan out there ... Reducing the corporate-tax wedge and reducing the budget-spending wedge, to quote my friend Arthur Laffer, would provide a tonic for the economy. In other words, a debt deal can still work and promote growth. National Review
The Road Ahead: Weak Economic Growth Persists In The Obama Economy
Economic Firms Continue To Downgrade The Nation’s Growth Outlook. The lethargy isn’t over. The U.S. economy’s weak growth rate was supposed to end with the first half. After all, temporary drags, particularly high energy costs and disruptions related to the Japanese disaster, were key headwinds last quarter. Recent reports, however, suggest the third-quarter economy is just limping along. While not a “soft spot,” the expected growth rate is so meager it is unlikely to lower the jobless rate by much. Two major economic shops lowered their outlooks last week. First, economists at J.P. Morgan reduced their expectations for third-quarter real gross domestic product. They now expect real GDP growth of 2.5% this quarter, down from a prior view of 3.0%. Then on Friday, the crystal-ball gazers at Goldman Sachs brought down their forecast, also to 2.5%, from 3.25% previously. The Wall Street Journal
Steve Wynn: President Obama Is The Biggest “Wet Blanket” To Job Creation and Economic Growth In My Lifetime. I'm saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate ... my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration. And it makes you slow down and not invest your money. ... those of us who have business opportunities and the capital to do it are going to sit in fear of the President. And a lot of people don't want to say that. They'll say, God, don't be attacking Obama. Well, this is Obama's deal and it's Obama that's responsible for this fear in America. Business Insider
President Obama’s Tax Hikes Stifle Growth, Will Lead To More Tax Hikes. Obama’s tax obsession becomes understandable when you realize the long game he’s playing: Big Taxes to fund Big Government. Decade after decade. See, it’s an almost universal belief among left-of-center journalists, economists, policymakers and politicians that Americans must pay higher taxes in coming years to cover the medical expenses of its aging population – not to mention all sorts of brand new social spending and green “investment.” Dramatically higher taxes. On everybody. And if we have a debt crisis, maybe those tax increases come sooner rather than later ... all those tax hikes would still fail to balance the budget. And when you move past 2035, taxes would almost certainly need to go even higher. Reuters
Getting To Know The Freshmen
Chip Cravaack: Rep. Chip Cravaack represents the 8th District of Minnesota. He is a 24 year Navy veteran, and he is the third generation of his family to serve in the United States military. His experience as a Navy helicopter pilot and Northwest Airlines pilot gave him the opportunity to experience and live in multiple areas of the United States, as well as travel to many foreign countries. Chip’s wife, Traci, is a graduate of The Carlson School of Management at the University of Minnesota. They have two sons. (Courtesy Of The Whip Office)
Off The Beaten Path
Classic: A Beer, A Buggy and A Police Chase – Buffalo News
Studios Try To Lessen What's Lost In Translation – The Associated Press