Gingrich calls for 'dis-appropriations' committee

Former House Speaker Newt Gringrich (R-Ga.) on Tuesday said if Republicans win the majority this November they should create a "dis-appropriations" committee to reduce the size of the government. 

"One of the [promises] Republicans aught to make if they win the majority this year is they'll establish a committee on reducing the government," he said at a breakfast sponsored by the American Spectator and Americans for Tax Reform. Gringrich also said it would be a mistake for Congress to raise taxes at a time of economic uncertainty and historically high deficits. 

"The answer to balancing the federal budget is less government, not higher taxes," he said. "In this economy, competing with China and India, raising taxes is economically suicidal."

Lawmakers are looking at the creation of a value added tax to help lower the deficit and reduce the country's dependence on debt. Gringrich criticized the VAT, saying it would create a welfare state.

"If you want to really recreate the European welfare state, the value added tax is a really good source of revenue," he said. 

The Speaker's comment on the VAT comes on the heels of American for Tax Reform sending a letter to lawmakers asking them to oppose the tax. 

The letter asks them to join an ant-VAT caucus. 

The group currently includes 54 representatives and 4 senators. Democratic members Frank Pallone (N.J.), Peter DeFazio (Ore.) and Jerry Costello (Ill.) are a part of the caucus.