The "Cut, Cap, and Balance Act" that the House of Representatives will vote on next week stands out as one of the most ideologically extreme pieces of major budget legislation to come before Congress in years, if not decades. It would go a long way toward enshrining Grover Norquist's version of America into law. It is so extreme that even the budget plan of House Budget Committee Chairman Paul Ryan would not fully satisfy its requirements — the Ryan plan's budget cuts wouldn't be severe enough.
The bill also would threaten the U.S. government with default and would likely cause the loss of roughly 700,000 jobs in the year ahead. In addition, the bill would target programs for the poor for cuts, while protecting tax breaks for the wealthy and powerful.
The version of the "Cut, Cap, and Balance Act" that House Republican leaders are now circulating would require total federal spending to be shrunk to less than 20 percent of the Gross Domestic Product (GDP) by 2018 and years thereafter. The Congressional Budget Office (CBO) has estimated that under the Ryan budget plan — which cuts non-security discretionary programs by 33 percent by 2021, cuts Medicaid by$1.4 trillion over the coming decade (and slices it in half by 2030), and shifts thousands of dollars a year in costs to Medicare beneficiaries — federal spending would exceed 20 percent of GDP in most coming years. CBO estimates, for example, that federal spending under the Ryan plan would equal 20 1/4 percent of GDP in 2022 and 20 3/4 percent in 2030.