Starving the Beast: Cut, Cap and Balance


Uploaded by MainStreetInsider on 17.07.2011

Transcript:
>>Narrator: This legislative summary is provided to you by Main Street Insider
This week we examine H.R. 2560, the Cut, Cap and Balance Act of 2011
Conservative Republicans have long sought to downsize government, but because gutting popular social programs without
A compelling reason would be political suicide, conservatives have developed a strategy called “Starving the beast”
>>O'Donnell: 30 years after Reagan's inauguration the starving of the beast is finally working the way Reagan and the Republican authors of that idea had hoped
Our deficits and debt are so enormous now that everyone believes we must cut spending
>>Narrator: The Cut, Cap and Balance Act would set in place a framework to permanently shrink government. Specifically, it would:
Cut 2012 non-security discretionary spending by $76 billion, mandatory spending by $35 billion, and allow defense spending to grow at a slower pace;
Cap federal spending as a percentage of GDP at 21.7% for 2013, declining to 19.9% by 2017 and remaining constant thereafter;
And balance budgets in the future by requiring a balanced budget amendment
That caps spending and requires a 2/3 vote for any tax increase to be passed before raising the debt ceiling
Supporters believe this is the only foolproof way to rein in federal spending
>>Cantor: We want to be able to go home to the people that elected us
And show them that we're not going to allow this kind of spending to continue
>>Narrator: Opponents worry that this proposal would deeply and irrevocably damage the safety net
>>Schumer: It cuts deeper than the Ryan Budget Medicare as we know it
And then it makes it impossible to close tax loopholes for millionaires
>>Narrator: The House Rules Committee has scheduled a meeting on H.R. 2560 for today and it will likely reach the floor for a vote tomorrow
Tune in next Monday for a summary of H.R. 308, a proposal to ban extended magazine clips, at
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