Daily Tax Update - June 6, 2011: Over 100 House Conservative Republicans Call for Spending Reductions to Resolve Debt Limit Impasse

OVER 100 HOUSE CONSERVATIVE REPUBLICANS CALL FOR SPENDING REDUCTIONS TO RESOLVE DEBT LIMIT IMPASSE: Today, 103 House Republicans sent a letter to House Speaker John Boehner and Majority Leader Eric Cantor calling for a three-pronged approach to spending reductions to resolve the debt limit impasse and avoid a greater debt crisis.

Vice President Biden is scheduled to resume the budget/debt ceiling talks on Thursday.

  • According to the letter, the "Cut, Cap and Balance" proposal calls for:

1. "Cut: We must make discretionary and mandatory spending reductions that would cut the deficit in half next year.

2. Cap: We need statutory, enforceable caps to align federal spending with average revenues at 18% of Gross Domestic Product (GDP), with automatic spending reductions if the caps are breached.

3. Balance - We must send to the states a Balanced Budget Amendment (BBA) with strong protections against federal tax increases and a Spending Limitation Amendment (SLA) that aligns spending with average revenues as described above."

  • The letter can be accessed here
  • Today, Cantor said, "Secretary Geithner feels August 2 is his deadline. I don't question the Secretary of the Treasury other than to say we're trying to get in place real spending reductions - trillions of dollars of spending reductions - if the president wants us to increase the credit limit of this country by trillions of dollars."


1. [112nd] H.R.2120 : To amend the Internal Revenue Code of 1986 to include individuals who have exhausted all rights to emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008 as a targeted group for purposes of the work opportunity tax credit. Sponsor: Rep Jackson Lee, Sheila [TX-18] (introduced 6/3/2011)   Cosponsors (None) Committees: House Ways and Means Latest Major Action: 6/3/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.
2. [112nd] H.R.2137 : To amend the Internal Revenue Code of 1986 to authorize an unemployment assistance voucher program. Sponsor: Rep Renacci, James B. [OH-16] (introduced 6/3/2011)   Cosponsors (1) Committees: House Ways and Means Latest Major Action: 6/3/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means

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