Debt limit reached, time to return to responsible fiscal policiesPosted by on May 16, 2011
Treasury Secretary Timothy Geithner today notified Congress that the government has reached its statutory debt limit of $14.294 trillion.
As outlined in previous letters to Congress, the Treasury Department has a number of tools within its authority to prevent default and can extend the deadline for increasing the debt limit to August 2. The Wall Street Journal has put together a good chart explaining some of those actions here.
As then-Senator Obama said, this is, “a sign of leadership failure,” and that it is time to, “return to responsible fiscal policies.”
How can we achieve that? By implementing the plan Jack introduced last week to balance the budget in just five years – faster than any other plan on the table – by limiting total federal government spending to 18% of the country’s gross domestic product.
In the first year alone, his plan would save $94.2 billion in comparison to the President’s budget and would turn in a $189.6 billion surplus in 2016 and every year thereafter under current projections.
Jack’s plan forces the government to do what families and small businesses do every day – balancing the money going out with the money coming in. It’s common sense and it should be taken up immediately. To read more about Jack’s plan, click here.
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