As you know, our national debt is fast approaching $14.3 trillion, the so-called “debt ceiling.” Congress is not allowed to borrow beyond that amount without first increasing the limit. Thankfully, this gives fiscal conservatives an opportunity to demand strong structural reforms to how the government spends our money.
Here at the Club, we are recommending that all Members of Congress vote “NO” on increasing the debt limit unless they pass a balanced budget amendment (BBA). One we have endorsed caps spending at 18% of GDP, and requires a 2/3rds supermajority in both chambers to increase taxes. When you consider that Congress is now spending (and borrowing) 24% of GDP, that BBA proposal is a very strong, pro-growth haircut. (more…)