Cut, Cap, and Balance
Jun 27, 2011
It's been called the most preventable disaster in American history. The coming debt crisis is so predictable it's difficult to find a single economist, expert, politician or American taxpayer who doesn't warn of the consequences of spending and borrowing ourselves into oblivion.
Cut, Cap, Balance in a time of sluggish growth | Day Lee Briefing -- 6/24/2011
Jun 24, 2011
Today’s Agenda
Senator Lee continues to work on promoting the Cut, Cap, Balance plan in Congress – a deal that would allow a vote on increasing the debt limit only after Congress has agreed to significantly cut the deficit, cap spending, and pass a balanced budget amendment to the Constitution.
From the Senator’s Desk
“Higher debt leads to slower economic growth. Empirical studies show that high levels of government debt inhibit economic growth by creating uncertainty, displacing needed private investment, and placing upward pressure on interest rates. For example, Reinhart and Rogoff found that, in advanced economies with gross government debt above 90 percent of GDP, median economic growth tends to be between one and two percent lower (depending on the time period analyzed) when compared to countries with lower debt-to-GDP ratios…
“Slower economic growth results in dramatic job loss. Christina Romer, former chair of the White House Council of Economic Advisers, equated one percentage point of GDP with one million jobs.
“Successful debt-reduction measures relying on spending cuts—not tax increases—have consistently resulted in stronger economic growth. Research from Harvard economist Alberto Alesina, as well as a Goldman Sachs report, found that fiscal consolidations that focused on cutting government spending—including on subsidies, transfer payments, and government worker pensions—were successful in cutting fiscal imbalances, typically boosted growth, and were followed by improved equity and bond market performance. Examples of successful spending reductions include Canada and New Zealand in the early 1990s…
“Yet the nation has operated without a budget plan for more than 780 days. The Democrat-led Senate has not even allowed the Budget Committee to meet this year to begin work on a resolution, and has refused to pass a budget at all since April 29, 2009. Over that time, the nation has spent $7.1 trillion and added $3.2 trillion in gross federal debt. Majority Leader Harry Reid recently said it would be “foolish” for Democrats to produce a budget. But nothing could be more foolish than refusing to provide the nation’s job creators, investors, and taxpayers with a blueprint for our fiscal future.” -- Memo to Senator Lee from the Senate Budget Committee
Recent Votes
On Senator Vitter’s amendment to end the appointments of presidential Czars who have not been subject to the advice and consent of the Senate and to prohibit funds for any salaries and expenses for appointed Czars, Senator Lee voted YEA.
Around the Water Cooler
Libya: “The House is expected Friday to vote to strip funding for offensive military operations in Libya, leaving only money for U.S. forces carrying out support activities for the NATO-led mission such as aircraft refueling, intelligence-gathering and reconnaissance.”
Cut, Cap, Balance: “Sen. Jim DeMint (R-S.C.) warned lawmakers they won't be reelected if they vote for a debt ceiling increase without a balanced budget amendment and serious across-the-board spending cuts.
A Look Ahead
Senator Lee has an interview with PJTV’s Tony Katz on Monday about the budget debate in the Senate, and meets with two Utah education groups on Tuesday and Wednesday. The Senate is expected to continue work on the Economic Development Agency Reauthorization Bill.
Day Lee Briefing -- 6/23/2011
Jun 23, 2011
Today’s Agenda
Today, Senator Lee attends a Foreign Relations Committee meeting with Secretary of State Hillary Clinton. In the morning he meets with Utah members of United We Dream and a group focused on finding employment for people with disabilities. He also has interviews with Fox’s Neil Cavuto and CNBC’s Larry Kudlow.
From the Senator’s Desk
“I recently signed a letter calling for the President to honor the pledge he made to begin the drawdown of forces in Afghanistan in July. I am encouraged the President has followed through on that pledge. The progress that has been made justifies a reduction in the number of troops engaged in intensive combat operations. However, success in Afghanistan remains in our national security interest and it is critical the pace of withdrawal not conflict with our capacity to eliminate any new terrorist threats. “ -- Blog post responding to President Obama’s recent announcement
Around the Water Cooler
Afghanistan: “We are encouraged that the overall military strategy will continue to be one of forceful counter-insurgency.”
Debt Limit: “Lawmakers are expressing frustration with the lack of information they have received from Vice President Biden’s debt-limit negotiations.”
Deficit: “Utah politicians sign Cut, Cap and Balance Pledge”
A Look Ahead
Senator Lee meets with two Utah based educational groups next week. The Foreign Relations Committee will meet to discuss the ongoing conflict in Libya on Tuesday, and Senator Lee will participate in a national blogger press conference on the Cut, Cap, and Balance Plan that afternoon.
President's SPR Release a Shrewd Political Move
Jun 23, 2011
Today, the President announced he was ordering the release of 30 million barrels of oil from the U.S. Strategic Petroleum Reserve. Having spent the better part of his administration preventing the development of America's oil and natural gas resources and increasing costs for our domestic energy companies, this announcement can only be viewed as a shrewd political move by the President.
Statement on the President's Afghanistan Announcement
Jun 23, 2011
Last night, the President outlined his plan to reduce our military footprint in Afghanistan. It includes a reduction of 5000 troops starting this summer and an additional 5000 troops by the end of the year. The President expects to redeploy the 33,000 troops that were sent over as a result of the Afghan “surge” by the end of next year.
Lee Disappointed with Google Response
Jun 22, 2011
“I'm very disappointed in Google's response to the request to have Larry Page or Eric Schmidt testify at our subcommittee hearing. I'm committed to work with Senator Kohl and others on the committee to ensure we have the opportunity to investigate these issues thoroughly and receive adequate responses from Google.”
Day Lee Briefing -- 6/22/2011
Jun 22, 2011
Today’s Agenda
Senator Lee will participate in a press conference today at 4:00 pm in the Cannon Caucus Room (Cannon House Office Building) announcing the “Cut, Cap, and Balance Pledge”. The pledge signifies members support for a plan to cut the deficit, cap federal spending, and pass the Hatch-Lee Balanced Budget Amendment before voting to increase the nation’s debt limit. Senator Lee will give remarks along with Senators Hatch, DeMint, Rubio, among others, as well as members of several coalition groups.
From the Senator’s Desk
THE PLEDGE
I pledge to urge my Senators and Member of the House of Representatives to oppose any debt limit increase unless all three of the following conditions have been met:
Cut - Substantial cuts in spending that will reduce the deficit next year and thereafter.
Cap - Enforceable spending caps that will put federal spending on a path to a balanced budget.
Balance - Congressional passage of a Balanced Budget Amendment to the U.S. Constitution -- but only if it includes both a spending limitation and a super-majority for raising taxes, in addition to balancing revenues and expenses.
Recent Votes
On the cloture vote to amend the Public Works and Economic Development Act of 1965 to reauthorize that Act, Senator Lee voted NAY.On the nomination of Leon E. Panetta to be Secretary of Defense, Senator Lee voted YEA.
Around the Water Cooler
Cut, Cap, Balance: I think it works well when people have definite convictions about which way it should go, express those ideas, and make it known what their conditions are."
Land Use: “Ken Salazar is attempting to make an end run around the law and close down all present and future uranium mining operations on the Arizona Strip.”
Afghanistan: “Obama is expected to announce in a televised address a plan that may include the withdrawal by year's end of up to a third of the 30,000 'surge' troops he sent to Afghanistan in 2010, possibly followed by the removal of the rest of those extra forces by the end of 2012.”
A Look Ahead
Tomorrow, Secretary of State Hillary Clinton is a witness at the Foreign Relations Committee discussing Pakistan and Afghanistan.
Lee Signs Cut, Cap, Balance Pledge
Jun 22, 2011
"Cut, Cap, and Balance is the single most significant reform package Congress has seen in decades," said Senator Lee. "It forces Washington to balance its books with strict, enforceable fiscal restraints and will cut spending significantly and immediately to improve our economy and create jobs."
Day Lee Briefing -- 6/21/2011
Jun 21, 2011
Today’s Agenda
Senator Lee meets with members of the uranium mining industry from Southern Utah. He’ll attend a Foreign Relations Committee meeting to look at several high profile nominations, and holds his weekly tele-press conference for Utah press this evening.
From the Senator’s Desk
Each week, dozens of constituents call the office to register their opinions on a range of issues. Last week we received several calls from those who oppose raising the debt ceiling, as well as many who are concerned about a particular judicial nomination the Senate will be voting on this week. Other issues include U.S. involvement in Libya, with the majority being opposed, and entitlement reform.
Around the Water Cooler
Land Use: “Our country's energy future remains in limbo because Secretary Salazar has chosen to placate his anti-energy special interest cronies.”
Cut, Cap, Balance: “By signing the pledge, lawmakers essentially promise not to vote to raise the debt ceiling unless it comes with the three-tiered package of spending cuts, caps, and a balanced budget amendment.”
Afghanistan: “President Obama is putting the finishing touches on his proposal for beginning to withdraw U.S. forces from Afghanistan, not two years after he surged 30,000 troops into the country in a bid to arrest the advances of the insurgency.”
A Look Ahead
Senator Lee will participate in a press conference tomorrow at 4:00 pm in the Cannon Caucus Room (Cannon House Office Building) announcing the “Cut, Cap, and Balance Pledge”. The pledge signifies members support a plan to cut the deficit, cap federal spending, and pass the Hatch-Lee Balanced Budget Amendment before voting to increase the nation’s debt limit. Senator Lee will give remarks along with Senators Hatch, DeMint, Rubio, among others, as well as members of several coalition groups.
Senator Lee Test Driving an Electric Truck from Utah Company Via Motors
Day Lee Briefing -- 6/20/2011
Jun 20, 2011
Today’s Agenda
Senator Lee meets with staff in preparation for this week’s committee hearings and possible votes. He will also test drive an electric truck made by Orem-based VIA motors.
From the Senator’s Desk
“Late on Friday, the Administration released its latest list of waivers granted from some of Obamacare’s onerous mandates. In the past month, another 62 plans covering 117,001 individuals received waivers, bringing to more than 3.2 million Americans who have received exemptions from some – but certainly not all – of the law’s mandates. Of those, over 1.58 million participants were in union-affiliated plans that received waivers – raising questions about why so many union members are being exempted from the law.” -- Memo from the Republican Policy Committee
The number of individuals who have received waivers from ObamaCare’s mandates is widely interpreted as the same number of those who will be pushed out of their current insurance plans and on to a government plan unless ObamaCare is repealed.
Recent Votes
On Senator McCain’s amendment to prohibit the use of Federal funds to construct ethanol blender pumps or ethanol storage facilities, Senator Lee voted YEA
Around the Water Cooler
Privacy: “The bill is exactly the kind of thing that Congress should be about, updating laws to make them conform at once to changing technologies and eternal standards of privacy and individual rights.”
Debt Limit: “If we can’t do something really significant about the debt ceiling, then we’ll probably end up with a very short- term proposal over a few months”.
The Week Ahead: “Deadlines will be looming over lawmakers’ heads this week as they continue debt limit talks as well as debate whether to continue supporting the mission in Libya.”
A Look Ahead
Secretary of State Hillary Clinton will visit the Foreign Relations Committee on Thursday to discuss Afghanistan and Pakistan. Senator Lee will also oversee a Water and Power Subcommittee meeting that day. Tomorrow, he meets with members of the uranium mining industry from Southern Utah and has a Joint Economic Committee meeting on federal spending. His weekly tele-press conference with Utah press is also tomorrow.
