House Republican: Include spending caps in debt-ceiling deal

ADVERTISEMENT
The Maximizing America’s Prosperity (MAP) Act would cap spending at 16.5 percent of potential gross domestic product, essentially the maximum level of GDP that does not spark a rise in inflation.

With Vice President Biden currently leading talks to find a deal to raise the debt ceiling, the Texas Republican signaled that he would like his proposal to be considered as a way to limit spending down the line. But Brady did not specifically insist that his measure be included in any debt-ceiling deal.

The congressman also said that the MAP Act would basically place guardrails around the House GOP budget, which he called a “bold plan,” by fleshing out the spending caps referenced in the proposal from Rep. Paul Ryan (R-Wis.). 

The proposal would also force presidents, when formulating their budgets, to rank a request from most to least essential on a five-point scale, with no category containing less than 12 percent. And should Congress fail to pass spending measures on time, the measure would avoid shutdowns by continuing government operations at 90 percent of the previous level.

ADVERTISEMENT
And Brady argued that his sequestration plan would be more successful than previous initiatives, including Gramm-Rudman-Hollings in the 1980s, because it was more focused on spending than deficits and limiting exceptions. Brady’s sequestration plan would allow for discretionary cuts of up to 10 percent and certain freezes in entitlement programs. 

The Republican's legislation is the latest congressional proposal to place a long-term cap on spending, with Sens. Bob Corker (R-Tenn.) and Claire McCaskill (D-Mo.) earlier introducing a plan to limit spending to 20.6 percent of GDP.

Liberal economic groups have slammed proposals to cap spending at certain percentages of GDP, saying they fail to account for the aging Baby Boomer population and other societal changes. 

The MAP Act was released the same week that Republicans on the Joint Economic Committee, of which Brady is vice chairman, released a report calling for an enforceable spending cap, among other proposals.

More in Finance

Rand Paul eyes debt-ceiling fight in Audit the Fed push

Read more »