Boehner Releases GOP Plan To Raise The Debt Limit

John BoehnerEric Cantor dropped out of the debt ceiling talks,

Photo: Flickr

Speaker of the House John Boehner (R-OH) released the GOP framework for cutting the deficit and raising the borrowing limit.In a statement he said the plan reflects the principles of “Cut, Cap, and Balance,” the Republican plan that passed the House but was tabled in the Senate last week.

This plan is far from perfect, but it adheres to our principles of ensuring that spending cuts are greater than any debt hike and it includes no tax increases,” he said in a statement.

Some GOP House members are reportedly unwilling to embrace the Boehner plan, saying it should have more immediate spending cuts and be contingent on a balanced budget amendment passing Congress. The proposal only calls for a vote on the Constitutional amendment by October 1, 2011.

Boehner introduced the plan despite President Barack Obama’s veto threat on any proposal that does not raise the debt limit through the end of 2012, and Senate Democrats’ insistence that such a deal is a “non-starter” in their chamber.

“Time is running short and it would be irresponsible for the President to veto this common-sense plan and run the risk of default,” Boehner said. “I would encourage the Senate to pass this plan and the President to sign it.”

The details of the plan as formulated by Boehner’s staff is below:

Cuts That Exceed The Debt Hike: The framework would cut and cap discretionary spending immediately, saving $1.2 trillion over 10 years (subject to CBO confirmation), and raise the debt ceiling by less – up to $1 trillion.

Caps To Control Future Spending: The framework imposes caps on discretionary spending that would establish clear limits on future spending and serve as a barrier against government expansion while the economy grows.  Failure to remain below these caps will trigger automatic across-the-board cuts (otherwise known as sequestration).

Balanced Budget Amendment: The framework advances the cause of the Balanced Budget Amendment by requiring the House and Senate to vote on the measure after October 1, 2011 but before the end of the year, allowing the American people time to build sufficient support for this popular reform.

Entitlement Reforms & Savings: The framework creates a Joint Committee of Congress that is required to report legislation that would produce a proposal to reduce the deficit by at least $1.8 trillion over 10 years. Each Chamber would consider the proposal of the Joint Committee on an up-or-down basis without any amendments.  If the proposal is enacted, then the President would be authorised to request a debt limit increase of $1.6 trillion. 

No Tax Hikes: The framework includes no tax hikes, a key principle that Republicans have been fighting for since day one.

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