Cut, Cap & Balance Act (CCB Act), Is It Enough? In a word NO. Don't get me wrong it is a great start in the right direction and that is why I support the CCB Act. But, we can do better and will have to because of the economic conditions that we unfortunately find ourselves in today and for the foreseeable future.
Let's review what the CCB Act actually is.
"Cuts total spending by $111 billion in FY 2012." This is a good start but remember we are expected to run a 1.5 Trillion dollar deficit in 2011 and will probably be close to 1 Trillion dollars in 2012. We still have a long wway to go.CUTCuts 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.
I have problem with the vague "Defence budget at President's level." I'm not sure exactly what that means. Hopefully that doesn't mean what ever the President determines is an acceptable level of spending for the defence of our coutry and the service men and women who serve. I personally do not trust this President to do the right thing. They say it will be at the same level the House passed for the FY 2012 budget.
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.
I understand the theory behind capping it at 20% of the GPD. Here is their reason. "This would place spending in line with average spending over the last 30 years." Every year over the last 30 years except for a couple we have had a deficit. So here is my question. If we keep spending at 20% of GDP and we are still running a deficit does that mean we will have to increase taxes?
Requires the passage of a Balanced Budget Amendment (BBA) before raising the nation's debt limit.
This sounds great but the devil is in the details. Here are the details they list on BBA.
The legislation would require that any Balanced Budget Amendment include the following:This means they do not have a BBA drafted yet. I like the outline in general but I want to see the details. I hope it will included a "Budget Line Item Veto."
- A balanced budget component;
- A super-majority requirement to raise taxes; and
- A limit on spending as a percentage of GDP.
All things considered it is a good start but I believe you will agree that it is just a start! November 6, 2012, cannot come soon enough!