Akron Beacon Journal...
Extreme measure
July 18, 2011 

China, one of this country’s largest creditors, has voiced concern about the contentious budget discussions in Washington. So have the International Monetary Fund and other global players in finance. Ben Bernanke, the chairman of the Federal Reserve, has warned about a “huge financial calamity” if President Obama and Republicans in Congress fail to reach a timely agreement on raising the debt ceiling. 

How has the Republican majority in the House responded? Today, Speaker John Boehner and his colleagues will take up a proposal, the “cut, cap and balance act,” that easily qualifies as radical. The measure may be just political theater, the majority showing its allegiance to the tea partyers. Still, the gesture is dismaying. It reinforces the Republican disdain for a necessary compromise. 

Rather than strike a deal with the president, one that tilts heavily toward their priorities, Republicans want to make a show of their defiance. 

The “cut, cap and balance act” would require federal spending to be shrunk to less than 20 percent of the overall economy by 2018 and remain there. That may sound reasonable. For decades, spending has hovered in that vicinity. Yet the limit lacks flexibility. Most telling, it takes no account of the changing budget dynamics, the country aging and thus its health-care costs likely to grow. 

Consider that Paul Ryan, the chairman of the House Budget Committee, would exceed 20 percent in his recently unveiled spending plan. 

In addition, the “cut, cap and balance act” proposes $111 billion in spending reductions starting in October. Such slashing would pose a risk to the fragile economy, dampening already sluggish demand. For the long term, the proposal ensures deep reductions in Social Security and Medicare. 

Yet these aren’t the most severe aspects. That description belongs to the provision that would bar raising the debt limit until Congress approves a constitutional amendment requiring a balanced budget and a two-thirds supermajority in the House and Senate to raise any taxes. Here is a dream-come-true for Grover Norquist. Practically speaking, Congress would be unable to raise taxes, or even close inefficient tax breaks. 

Finally, the measure would reverse a longtime exemption that protects programs serving the poorest Americans from across-the-board spending reductions. Thus, while the wealthiest households gain protection from tax increases, the needy would be left more vulnerable. 

President Obama rightly greeted the “cut, cap and balance act” with a reminder that none of its steps is necessary for the White House and Congress to do their jobs. The country must raise its debt-ceiling. The president has proposed a compromise, three-quarters spending reductions and one-quarter tax increases. A responsible House majority would embrace its shape, even declare victory. Unfortunately, this group of Republicans would rather pose in the ideological extreme. 

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