The Congressional Budget Office (CBO) just released analysis that confirms the Budget Control Act of 2011 cuts government spending by more than it increases the debt limit – reaffirming the principle that House Speaker John Boehner (R-OH) and Republicans successfully fought for throughout this debate. Specifically, the CBO analysis confirms the Budget Control Act:
- CUTS MORE SPENDING THAN IT INCREASES THE DEBT LIMIT: The $917 billion in spending cuts over 10 years exceeds the $900 billion debt hike – a critical test Speaker Boehner and Republicans have insisted upon;
- INCLUDES NO TAX HIKES: There are no job-crushing tax hikes in this bill. And Republicans will not raise taxes going forward;
- IMPOSES TOUGH CAPS TO RESTRAIN FUTURE SPENDING: There are more than $21 billion in spending cuts next year alone, and the bill continues to reduce the deficit in the years ahead (by $42 billion in 2013, $59 billion in 2014, $75 billion in 2015, $87 billion in 2016, and so on); and
- KEEPS THE FOCUS ON SERIOUS SPENDING CUTS & REFORMS: The bill creates a joint-committee with a goal of enacting at least $1.5 trillion in additional spending cuts over 10 years. Washington must adopt these cuts by the end of the year or send a Balanced Budget Amendment to the states before the president can request another debt limit increase. Even if a balanced budget amendment is sent to the states, spending must still be cut.
The Wall Street Journal called this bill “a rare bipartisan victory for the forces of smaller government,” “arguably the biggest since welfare reform in 1996.” And Americans for Tax Reform says it “totally rejects any tax increases and enacts lasting and critical spending reform.” Read the bill online here and a summary here.