Cantor Says No To New Stimulus Spending

Eric Cantor

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House Majority Leader Eric Cantor put a damper on President Barack Obama’s plans to include new stimulus spending in the bill to be drafted by the “Super Committee.”In a memo to House Republican lawmakers, Cantor called for “policy certainty,” including the passage of a full-year budget for the government, as opposed to the “continuing resolutions” that have kept the lights on for the past year.

“We must put an end to the policy uncertainty constantly being driven by this Administration,” he said. “…That means stopping the discussions of new stimulus spending with money that we simply do not have.”

Earlier today the White House leaked its plans for Obama to hold a major jobs and debt speech shortly after labour Day, in which he would encourage the “Super Committee,” tasked with making $1.5 trillion in cuts to the federal deficit, to also tackle the jobs problem.

Obama is expected to propose an extension of the payroll tax cut, as well as an infrastructure bank, and potentially tax breaks for businesses hiring new employees. Cantor spokesman Brad Dayspring, asked which proposals the majority leader would opposed, replied “Stimulus spending.”

The debt ceiling bill passed earlier this month set a spending cap for fiscal year 2012 which begins on October 1. Tax breaks would not count against the cap — which sets maximum levels for direct outlays — though they would increase the deficit. Any new spending would have to be offset elsewhere to remain under the cap.