No Debt Limit Increase Without Spending Cuts

Last month, the House of Representatives rejected an unconditional increase in the debt limit, sending a clear signal to the American people, the financial markets and the Administration that Republicans are serious about tackling our debt and deficit problems. 

Our current debt path is unsustainable and unacceptable.  At nearly $15 trillion, our debt will be larger than the size of our economy this year.  Nonpartisan research suggests that when a country’s debt reaches that level, then economic growth is reduced by about one percent – or about 1 million jobs here in America.  The ‘borrow now and pay later’ attitude has prevailed for too long in Washington and is threatening the American Dream.  We simply aren't going to continue on that same reckless path any longer. 

We must force Washington to live within its means, and any deal on the debt limit should include real reforms including entitlement programs like Medicare. Research by international experts clearly demonstrates that spending reforms, not tax increases, are the most effective path to fiscal consolidation. The best policy we can promote to accelerate job creation is to control government spending and let the private sector do what it does best – invest and create jobs.

The problems created by growing deficits and debt are not new, nor are they creation of one party alone.  But they have gotten much more severe and what many viewed as a future problem is firmly here today.  Until we restore some semblance of confidence – and that starts with significantly cutting spending in Washington – this economy will continue to limp along.

We can get Washington and this economy back on track.  House Republicans have offered bold solutions to deal with America’s debt and economic crisis.  We have called for a total overhaul of the tax code in order to reduce the complexities and costs that put American employers and workers at a disadvantage.  According to independent economists, when coupled with real spending cuts, like those in the House passed budget, tax reform could lead to the creation of 1 million new jobs next year alone.  We have also pushed for enactment of the long-pending trade agreements with South Korea, Panama and Colombia, which would increase exports by $13 billion and create up to 250,000 jobs for American workers.  The only thing standing in the way of these job-creating policies is the President.

We cannot wait any longer; Congress must work now to find bipartisan solutions that allow government to carry out its important functions and implement a pro-growth policy without imposing crippling tax burdens on its families and job creators.

** Congressman Dave Camp represents the people of the 4th Congressional District of Michigan, which spans from Owosso to Greenville and northward to Traverse City and the Leelanau peninsula. Camp is the Chairman of the Ways and Means Committee, which is one of the oldest and most powerful committees in the U.S. House of Representatives.