ALG urges House to tie debt ceiling to balanced budget, 'Full Faith and Credit Act"

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 event 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."