Senator Lamar Alexander (R-Tn.) on Thursday announced he is cosponsoring the “Cut, Cap and Balance Act of 2012,” introduced by Senator Mike Lee (R-Utah) to cut federal spending, cap mandatory and discretionary spending, and require passage of a balanced budget amendment before the debt limit can be raised.
Senator Alexander said: “We are borrowing 42 cents of every dollar we spend and entitlement spending is growing at three to four times the rate of inflation—we must make tough decisions and adopt a responsible budget that grows the economy and reduces our debt. I supported the Budget Control Act, which takes the first step in the right direction to limiting discretionary spending, and I am ready to go to work putting together a proposal for debt reduction and tax reforms based on the best parts of the Simpson-Bowles plan, the Domenici-Rivlin plan, Senator Toomey’s budget proposal, the ‘Cut, Cap, and Balance’ proposal by Senator Lee, and others.”
“The problem with Washington is that it spends money we don’t have, and we must adopt tax reform and spending reductions that reduce the debt and grow the economy.”
This bill updates the “Cut, Cap and Balance Act,” which Senator Lee introduced and Alexander cosponsored last year, to include updated budget figures in Senator Pat Toomey’s fiscal year 2013 budget resolution (S.Con.Res 37).
The “Cut, Cap, and Balance Act of 2012”would reduce spending by $104 billion from fiscal year 2012; establish specific budgetary caps on six categories of mandatory and discretionary spending; and would also require the passage of a Balanced Budget Amendment before Congress can raise the nation’s debt limit.