House Republicans were voted into office to change the culture of spending in Washington and we have been clear that we will not support the President's request to increase the debt limit without serious spending cuts and binding budget reforms. As we’ve said from day one, we are ready to do big things and address the drivers of our debt, just like we did in our budget, but we cannot do it by hiking taxes on families and the very small businesses we are counting on to create jobs. The Gang of Six proposal that was unveiled yesterday lacks substantive details and many significant policy proposals remain unclear, but it also seems to include some constructive ideas on how we deal with our debt.
On the positive side, the top tax rates of no more than 29% identified in the Gang’s plan, and the President’s endorsement of them, represent a positive step forward to boost economic growth. However, the Gang of Six plan does not significantly address the biggest drivers of our debt – our insolvent entitlement programs – and details on how the Gang would reach their revenue target remain unclear. As we move forward, House Republicans are united in our view that tax increases on families and small businesses remain the wrong policy especially in this ailing economy. We must pursue a path that begins to manage down our debt and puts the economy back on track so that businesses can begin hiring and people can get back to work.
Today in History: In 1969, at 10:56 p.m. EDT, American astronaut Neil Armstrong, 240,000 miles from Earth, speaks these words to more than a billion people listening at home: "That's one small step for man, one giant leap for mankind." Stepping off the lunar landing module Eagle, Armstrong became the first human to walk on the surface of the moon.
Birthdays: Gisele Bündchen, Carlos Santana, Chris Cornell, Billy Mays, David Chalian, Ed Henry and Chuck Daly
Here is what’s in today’s Ledger ...
State of Play: House Republicans Pass Cap, Cut and Balance, Take Another Serious Step To Get The Nation’s Fiscal House In Order
House GOP Passes Cut, Cap and Balance, Cuts Federal Spending By Nearly $6 Trillion. Defying a veto threat, the Republican-controlled House voted Tuesday night to slice federal spending by $6 trillion and require a constitutional balanced budget amendment to be sent to the states in exchange for averting a threatened Aug. 2 government default. Debate in the House was along predictable lines, and only nine Republicans opposed the bill and five Democrats supported it on final passage in the 234-190 vote. ... "Let me be clear. This is the compromise. This is the best plan out there," said Rep. Jim Jordan, R-Ohio, head of a conservative group inside the House known as the Republican Study Committee. The legislation, dubbed "Cut, Cap and Balance" by supporters, would make an estimated $111 billion in immediate reductions and ensure that overall spending declined in the future in relation to the overall size of the economy. The Associated Press
Leader Cantor On The Gang Of Six Proposal: The Tax Rates Look Promising, But The Revenue Targets Raise Concerns. "On the positive side, the tax rates identified in the Gang's plan -- with a top rate of no more than 29 percent -- and the president's endorsement of them are a positive development and an improvement over previous discussions," House Majority Leader Eric Cantor, R-Va., said. "That said, I am concerned with the Gang of Six's revenue target." The Associated Press
Do Nothing Democrats: No Budget From Senate Democrats, No Serious Plan From The President To Deal With Deficit Reduction. With the clock ticking down toward what the administration calls “fiscal Armageddon,” the president still has not put an actual plan for increasing the debt ceiling on the table. ... when it comes to actually spelling out what those compromises, choices, and reforms would be, the president is suddenly absent. ... The House has passed a budget. The president doesn’t like it. The president’s alternative? He doesn’t have one. The president did announce a budget back in February, but he has since disavowed it, and the Senate voted against it 97–0. The president also delivered a budget speech in May. But as the director of the Congressional Budget Office noted, “We don’t score speeches.” The president still has not submitted a new budget proposal to Congress. Of course, he’s in good company. Senate Democrats haven’t produced a budget in two years. This year, in fact, for the first time in memory, even the Senate Budget Committee couldn’t come up with a budget proposal. National Review Online
The Obama Economy: Americans Continue To Give President Obama Failing Grades On The Economy
With Unemployment at 9.2% ... 72% Of Americans Say The Economy Will Either Stay The Same Or Worsen
57% Of Americans Disapprove Of President Obama’s Handling Of The Economy
A Year Later: Dodd-Frank Has Failed To Address The Root Causes Of The Financial Crisis, Added Massive Amounts Of Regulation That Hinders Economic Recovery. The act made some useful corrections in the regulation of American financial markets, but it has failed to respond effectively to the root causes of the financial crisis and its impact on the global financial system. In the short term, it has hindered economic recovery. Worse, in the longer term, it has actually made future crises more likely, while potentially damaging the international competitiveness of America’s financial institutions. ... Dodd-Frank did not rectify the low underwriting standards of Fannie Mae and Freddie Mac, and failed to reverse the low levels of capital that Basel has required banks to hold for mortgages. Its creation of a Financial Stability Oversight Council to monitor systemic risk – a ten-headed hydra of largely independent agencies – will not be effective. ... This massive revamp of American regulation creates uncertainty ... The Financial Times
Getting To Know The Freshmen
Scott Tipton: Rep. Scott Tipton represents the 3rd District of Colorado. Born and raised, in Cortez, Colorado, he graduated from Ft. Lewis College in Durango, where he studied Political Science and became the first person in his family to earn a college degree. After college, he returned home to Cortez and co-founded Mesa Verde Indian Pottery with his brother Joe. It was through his business that Scott met his wife of 26 years, Jean, who is now a retired school teacher. The Tipton’s have two daughters, Liesl and Elizabeth. As a Member of the U.S. House of Representatives, Scott has vowed to bring Colorado common sense Washington—focusing on reforming regulation, responsibly protecting Colorado’s natural environment, cutting government spending, and removing hurdles so that small businesses can do what they do best—create jobs.
Off The Beaten Path
Attention South Park Fans: Cheesy Poofs Coming To Walmart – The Seattle Post-Intelligencer
Seriously, They Got That Into The Boat?
Sorry Buddy, But You’re Not Exactly A Looker