Jan. 22, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today called a “good faith effort” a proposal by Sen. Pat Toomey (R-PA) and more than 30 Senate Republicans to avert default even if the $16.394 trillion debt ceiling is not increased.

The “Ensuring the Full Faith and Credit of the United States and Protecting America’s Soldiers and Seniors Act,” would prioritize payments on interest, Social Security, Medicare, defense, and veterans should the debt ceiling be reached.

“This is a good faith effort by Sen. Toomey that at least would take the threat of default off the table,” Wilson said, calling it a “necessary precursor to real reform.”

He added, “It would stop the fear mongering aimed at seniors who are being scared that their Social Security and Medicare benefits are in jeopardy if the debt ceiling is not raised. It would stop making our brave soldiers on the front lines human shields for the big spending brigades in Washington, D.C.”

“It’s impossible for lawmakers to have an honest discussion with the White House about future spending priorities when there’s still a loaded gun on the table,” Wilson noted. “Default, if it comes to that, will be a choice by Obama, because there’s actually enough revenue to pay interest on the debt.”

Out of the $2.8 trillion of annual revenue the White House expects in 2013, only about $360 billion, or $30 billion monthly, will go to paying gross interest on the debt.

In addition, there would also be enough revenue to pay out Social Security ($820 billion), Medicare ($564 billion), defense ($700 billion), and veterans’ benefits ($79.5 billion), with as much as $600 billion left over to pay for other essential items.

But even if there were a temporary cash shortfall at the Treasury in lieu of revenue coming in, the legislation “would also give limited authority to Treasury to raise the debt ceiling just enough to borrow the difference between revenue on hand and what’s owed on the priority payments,” according to CNNMoney.com.

Wilson called Sen. Toomey’s proposal “an important building block to a more comprehensive solution, which must also include spending cuts,” noting that the U.S. is currently at risk for another credit downgrade of its AAA rating, this time by crediting ratings agency Fitch.

“Credit rating agencies are looking for major deficit reduction in the midterm. If they are honest to their clients, seeking to provide credible investment advice, which I believe they are, if the U.S. cannot significantly reduce the deficit then we should be downgraded,” Wilson explained.

In its statement, Fitch wrote, “In the absence of an agreed and credible medium-term deficit reduction plan that would be consistent with sustaining the economic recovery and restoring confidence in the long-run sustainability of U.S. public finances, the current negative outlook on the ‘AAA’ rating is likely to be resolved with a downgrade later this year even if another debt ceiling crisis is averted.”

Fitch added that even under a payment prioritization plan, such as Toomey’s, it would “prompt a downgrade even as debt obligations continued to be met.”

“That is because a payment prioritization plan on its own does not include a spending-reduction package,” Wilson said. “If the best we can do is pay interest on the debt, and we provide no means of reducing our principal owed, our credit-worthiness will continue to deteriorate.”

Americans for Limited Government has previously advocated for a statutory, ten-year path to a balanced budget without any tax increases in exchange for any debt ceiling increase, coupled with a proposal similar to Toomey’s, which Wilson said together could avert a downgrade if enacted.

He concluded, “The fact is, we’ll be downgraded with or without a payment prioritization plan if there are not sufficient spending cuts. Those cuts become that much more difficult necessary so long as Obama can wield the threat of default against lawmakers. That makes passage of Sen. Toomey’s proposal a first, essential component to real reform.”

Attachments:

Memo for the Movement, “Congress must pass a 10-year pathway to balance to raise debt limit,” Jan. 17, 2013 at http://netrightdaily.com/2013/01/memo-for-the-movement-congress-must-pass-a-10-year-pathway-to-balance-to-raise-debt-limit/

“Obama’s default threat bluff,” by ALG President Bill Wilson, Jan.15, 2013 at http://netrightdaily.com/2013/01/obamas-default-threat-bluff/

“Why the debt ceiling is the only way,” by ALG Senior Editor Robert Romano, Jan. 17, 2013 at http://netrightdaily.com/2013/01/why-the-debt-ceiling-is-the-only-way/

Interview Availability: Please contact Robert Romano at (703) 383-0880 ext. 106 or at robert@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Jan. 22, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement blasting a House Ways and Means Committee proposal to suspend the debt ceiling until May 19, 2013, H.R. 325:

“When will the liberal tail stop wagging the Republican dog? This is an absurd, unserious proposal by the House Ways and Means Committee, especially when other Republicans have been coming up with serious proposals to address our fiscal problems.

“On one hand, it is a foolish fraud wherein Republicans are pretending not to raise the debt ceiling — that they are merely ‘suspending’ it — when under their own proposal, it will automatically increase on May 19.

“On the other, it appears Republican leadership is ready to wave the white flag. It is borderline surrender, a half-step toward eliminating the debt ceiling all together.  All the Senate has to do after the four months are up is insist that the debt ceiling suspension be extended indefinitely as the only means to avert default. Come May 19, Republicans will be backed into a corner of their own making from which they will see no escape but total capitulation.

“How does this in any way substantively strengthen the Republicans’ hand? They will be transferring all of their leverage to Obama and Reid on a silver platter. This proposal should not be given one minute of consideration.”

Interview Availability: Please contact Robert Romano at (703) 383-0880 ext. 106 or at robert@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Jan. 17, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today joined with 38 other free market and limited government organizations in urging action by the House to tie a vote to increase the $16.394 trillion debt ceiling to a 10-year pathway to a balanced budget without any tax increases and passage of the “Full Faith and Credit Act.”

“With the $16.4 trillion national debt growing disproportionately larger than the economy, the American people are rapidly running out of time to get Washington, D.C.’s spending and borrowing addiction under control,” said Wilson.

Wilson added that tying a balanced budget and the “Full Faith Credit Act” to the vote was “absolutely necessary to take President Obama’s threat of default off the table. Never again should any president be allowed to demand a blank check from Congress by threatening default, when there is more than enough revenue to pay our creditors on time and in full.”

The “Full Faith and Credit Act” would prioritize payments on interest, Social Security, Medicare, defense, and veterans’ benefits out of revenue in the even the debt ceiling is reached.

Out of the $2.8 trillion of annual revenue the White House expects in 2013, only about $360 billion, or $30 billion monthly, will go to paying gross interest on the debt.

“That means even if the debt ceiling was reached, the government could still refinance existing debt up to the limit, and would have ample revenue to pay interest out. So, there would be no need to default,” Wilson explained.

“There would even be enough revenue to pay out Social Security ($820 billion), Medicare ($564 billion), defense ($700 billion), and veterans’ benefits ($79.5 billion). And if the White House’s 2013 revenue estimate is anywhere near correct, there could be as much as $600 billion left over to pay for other essential items,” Wilson added.

The August 2011 increase of the debt ceiling had been accompanied by $65 billion of sequestration cuts, which Wilson said needed to be kept in place.

Congressional Democrats, along with the Obama Administration, have threatened to eliminate the national debt ceiling from law, which would allow the White House to borrow at will without any congressional authorization.

“This could be the last chance House Republicans have to use the debt ceiling to achieve a balanced budget,” Wilson noted, concluding, “It is time to stop stealing from our children and grandchildren.”

Attachments:

Memo for the Movement, “Congress must pass a 10-year pathway to balance to raise debt limit,” Jan. 17, 2013 at http://netrightdaily.com/2013/01/memo-for-the-movement-congress-must-pass-a-10-year-pathway-to-balance-to-raise-debt-limit/

“Obama’s default threat bluff,” by ALG President Bill Wilson, Jan.15, 2013 at http://netrightdaily.com/2013/01/obamas-default-threat-bluff/

“Why the debt ceiling is the only way,” by ALG Senior Editor Robert Romano, Jan. 17, 2013 at http://netrightdaily.com/2013/01/why-the-debt-ceiling-is-the-only-way/

Interview Availability: Please contact Robert Romano at (703) 383-0880 ext. 106 or at robert@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Jan. 15, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement condemning the House of Representatives for defeating an amendment by Representatives Mick Mulvaney (R-SC) that would have saved taxpayers $17 billion on the hurricane disaster relief bill:

“The House had an opportunity to pay for the $17 billion hurricane disaster relief bill with offsetting spending cuts but took a pass. This is truly a shame. After all the wrangling on sequestration about reducing the deficit, the moment Congress has a pork-laden bill they refuse to pay for it.

“The majority of House Republicans who voted in favor of the Mulvaney amendment are to be praised. But there is simply no excuse for Democrats and Republicans who refused to pay for disaster assistance, who are hiding behind those most hurt by Hurricane Sandy to facilitate a special interest agenda. What does this foretell for sequestration or other promised cuts to spending?

“The House majority is running the risk of losing its mandate to govern, when it appears so incapable of reining in spending in Washington, or even paying for a worthy goal as disaster assistance.”

Interview Availability: Please contact Robert Romano at (703) 383-0880 ext. 106 or at robert@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Jan. 15, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement urging the House of Representatives to adopt amendments to the Hurricane Sandy disaster relief bill by Representatives Mick Mulvaney (R-SC) and Rob Bishop (R-UT):

“It is disheartening and sad to see the House Rules Committee block many amendments that would have trimmed billions of pork from the hurricane disaster relief bill that had nothing to do with Hurricane Sandy.

“That said, two amendments that did manage to get through the rules process offered by Representatives Mick Mulvaney and Rob Bishop merit passage. The Mulvaney amendment include $17 billion of offsetting discretionary spending cuts to pay for the main bill. The Bishop amendment would prohibit any more federal land grabs under the legislation.

“Should the Mulvaney and Bishop amendments be adopted, then the entire legislation would merit passage. But if they are not added to the bill, Americans for Limited Government urges the House to vote no on this pork-laden, federal power grab.

“There is no excuse for hiding behind families whose lives were destroyed by this hurricane to pass yet another wasteful, special interest bill. The process of using disaster relief to hand out favors to special interests is despicable and must be brought to an end. It is the sort of process the American people loathe and repudiated in 2010 when they brought House Republicans into the majority.”

Interview Availability: Please contact Robert Romano at (703) 383-0880 ext. 106 or at robert@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Beware politicians and others who attack constitutionally protected individual freedoms.

Jan. 10, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement on today’s White House gun summit:

“Today’s White House gun summit is nothing more than a sham.  Vice President Joe Biden’s vague threat issued in front of numerous anti-gun groups that Obama would bypass Congress and act using his ‘executive’ powers reveals that this Administration is not looking at violence, but rather at ways to impose even more restrictions on law-abiding Americans.

“The larger danger is that emboldened assaults on the U.S. Constitution and the protections it provides against a tyrannical government are accelerating.  A recent opinion piece by a Georgetown law Professor published by the New York Times argues for the wholesale abandonment of the U.S. Constitution, decrying ‘all its archaic, idiosyncratic and downright evil provisions.’

“Absent the Constitution, there is no government – only anarchy.  One cannot destroy our founding document without destroying the nation it created (or what’s left of it).   And make no mistake – once freed from any real or implied constraint, government becomes the tyranny our Founding Fathers (and most present-day Americans) fear.

“In light of this growing mindset on the left, if Obama chooses to pursue a constitutionally questionable direction, one can expect a chorus of praise from the same voices who depend upon the constitutional protection of their right to express that view.  The missed irony is that if the Constitution is destroyed, everyone’s freedom is destroyed, not just the freedom of those who are currently fashionable to attack.”

Interview Availability: Please contact Robert Romano at (703) 383-0880 ext. 106 or at robert@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Jan. 4, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement responding to today’s unemployment report:

“With the number of people unemployed jumping by 164,000, it is clear that the economy under Obama’s stewardship continues to struggle. Supposedly the recession ended in June 2009, but more than three years later, the economy is still shedding jobs, with 22.4 million who cannot full-time work, and another 5 million who have given up looking all together.

“Moreover, labor force participation remains very low at 63.6 percent, as Baby Boomers engage in early retirement and young people fail to enter the workforce. If the labor force participation rate had remained steady at the 65.7 percent level when Obama entered office, today’s unemployment rate would have come in at 10.7 percent, and the underemployed rate at 17 percent. This is a depression. We’re still dead in the water.

“This, despite trillions of dollars fiscal and monetary ‘stimulus’ by the government that was supposed to get the economy back on track.

“The American people have every right to be outraged at this pathetic performance, and now it is time for Congress to chart a new course. With the highest corporate tax rate in the developed world, a sinking dollar, and a regulatory environment that would make Soviet Russia blush, the U.S. is rapidly becoming a terrible place to do business.

“Unless the cost of doing business here can be reduced, through lower taxation, reining in new health care, labor, and environmental regulations, and sound money, a robust economic recovery will continue to allude policy makers.”

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Jan. 3, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement responding to the Obama Administration’s vow that it “will not have another debate with this Congress about whether or not they should pay the bills they have already racked up,” referring to an increase of the $16.394 trillion debt ceiling:

“The arrogant argument that the White House is making, that Congress is racking up all of these unsustainable increases of the national debt, and so all debt ceiling votes ought to be rubber-stamped, is a bit disingenuous. 60 percent — some $2.2 trillion — of the $3.65 trillion budget will be spent automatically without any vote in Congress this year and every year that follows. This so-called ‘mandatory’ spending — the constitutionally questionable process of baseline budgeting — is the true driver of our debt crisis.

“Also, nearly one-fifth of the House will be new members, and with the exception of former members who have regained their seats, have never voted for any of this spending. But even the ones who have been there for years have never really voted on the Social Security budget, or the Medicare budget, and on down the line, because these are not subject to the annual appropriations process. They are determined by eligibility formulas enacted in some cases decades ago.

“The fact is, the debt ceiling is the only means Congress has to have any say on whether this automatic spending will be financed. Whereas, if the Obama Administration gets what it wants — which is to eliminate the debt ceiling all together — we may as well just abolish Congress all together. Then, it will have become little more than a useless puppet theater, a means to control the masses through the illusion of representation. Why even have elections at all if representatives are not even allowed to vote on the only budgetary matters of significance?

“No matter what Obama says, Congress has to perform its constitutional duty. The Constitution empowers it, not the President, in Article 1, Section 8 to ‘borrow money on the credit of the United States’. Article 1, Section 9 states that ‘no money shall be drawn from the Treasury, but in consequence of appropriations made by law.’ Contrary to what Obama seems to believe, it is not his choice whether this debate will take place. It is a debate Congress must have, and whether Obama chooses to participate in it or not is irrelevant.”

Attachments:

“Is ‘mandatory’ spending constitutional?” by ALG President Bill Wilson, Dec. 12, 2012 at http://netrightdaily.com/2012/12/is-mandatory-spending-constitutional/

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Jan. 2, 2013, Fairfax, VA—Americans for Limited Government, a non-partisan group dedicated to limiting the size and scope of government at all levels, blasted members of Congress who voted in favor of the tax increase measure that passed both the Senate and House of Representatives on New Year’s Day.

Bill Wilson, president of the group denounced the law saying, “This so-called ‘deal’ is typical Washington, D.C., laden with pork including a subsidy for Obama’s Hollywood buddies and even NASCAR, while increasing taxes on every working American. Incredibly the law will be classified as a tax cut because it passed after the Bush tax cuts expired, so in D.C. doublespeak, politicians will claim to have cut taxes when everyone’s taxes are actually going up.”

An initial analysis of the legislation utilizing estimates from the Joint Committee on Taxation conducted by ALG showed that while the tax increases on those making more than $400,000 a year will generate approximately $30 billion in revenues a year, the cost of servicing the projected increased federal debt of $1.2 trillion will actually eat away about 88 cents of every new dollar raised.

“By avoiding actually dealing with Washington’s spending addiction, they have raised taxes to do little more than pay the increased interest on the debt over the next year. Meanwhile, the head in the sand types on Capitol Hill will be clamoring to spend this ‘new money’ on their favored special interests. We are truly through the looking glass.”

Attachments:

“Landing on the fiscal rocks below,” by ALG senior editor Robert Romano, Jan. 2, 2013 at http://netrightdaily.com/2013/01/landing-on-the-fiscal-rocks-below/

Senate roll call on H.R. 8 at http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=112&session=2&vote=00251

House roll call on H.R. 8 at http://clerk.house.gov/evs/2012/roll659.xml

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teloewe@amcguild.org

Dec. 28, 2012, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement urging the Senate to finally act on legislation that would actually avert the fiscal cliff of tax increases on every single American:

“Although the Senate has passed legislation that would affect tax rates at the start of the new year, the bill itself is unconstitutional, as S. 3412 never originated in the House of Representatives. Article 1, Section 7 of the Constitution requires that ‘All bills for raising revenue shall originate in the House of Representatives.’ House Speaker John Boehner could not act on this bill, or amend it, even if he wanted to due to this constitutional delegation of authority.

“The Senate has been provided many pieces of legislation by the House, such as H.R. 8, that it could lawfully amend or pass, allowing the Senate and House to convene a conference committee to resolve differences. That is how constitutionally a bill becomes law.

“What can be inferred from Senate Democrats’ refusal to act on any House legislation to avert the fiscal cliff is that Harry Reid has every intention of raising taxes on every American one way or another.  Or else he would have simply amended an H.R. bill, like the Senate did to pass Obamacare, to include his preferred resolution to the fiscal cliff.

“Obama, who has failed to demand the Senate take further action, is therefore complicit in increasing taxes on all Americans. Even if the House did pass S. 3412, as many Senators have demanded, and the President signed it, it would later be held to be unconstitutional, and then everyone’s taxes would go up anyway. Reid and Obama know this. They want to go over the cliff.

“The House has done its job. Now it is up to the Senate to take up H.R. 8 and pass it or amend it. The Senate need not agree with everything the House has done, but Reid’s method of averting the fiscal cliff would not pass muster in a basic civics class, let alone a court of law.”

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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