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Cut, Cap and Balance is a [[budget]] plan created by the conservative members of [[congress]] that would help improve the financial situation of the United States by cutting and limiting government spending and requiring a balanced budget. It is opposed by [[President Obama]] and is unlikely to pass the democrat controlled [[Senate]].
The '''Cut, Cap and Balance Act''' is a [[budget]] plan created by the [http://rsc.jordan.house.gov/default.aspx Republican Study Committee] of [[Congress]]. The goal of the Act is to improve the financial situation of the United States by cutting and limiting government spending, as well as passing a Constitutional amendment that requires a balanced budget ever fiscal year. The Act passed the House of Representatives by a vote of 234-190 on July 19, 2011. It is opposed by [[President Obama]], and it is unlikely to pass the Democrat controlled [[Senate]].
==Cut==
The "cut" portion of the Act requires that discretionary and mandatory spending reductions be made that would cut the deficit in half next year. In the legislative version of the Act passed by the House of Representatives, Medicare and Social Security are exempt from immediate cuts.
==Cap==
The "cap" portion of the Act requires that spending not exceed 19.9% of GDP at any time by 2018. This is in line with the average amount of federal spending for the past thirty years.
==Balance==
The "balance" portion would require that Congress propose a balanced budget amendment to the US Constitution. The amendment would:
*require a super majority in either the House of Representatives or Senate for government spending to exceed revenue
*limit the spending to 18% of GDP, unless a super majority votes otherwise
*bar courts from raising taxes to satisfy the previous requirements
*these requirements could be waived during a war<ref>[http://www.theatlantic.com/politics/archive/2011/07/how-a-balanced-budget-amendment-would-work/242202/ How a Balanced Budget Amendment Would Work] The Atlantic, July 20, 2011</ref>
==External Links==
*[http://www.cutcapandbalanceact.com/ Cut Cap and Balance Act Homepage]
*[http://rsc.jordan.house.gov/default.aspx Republican Study Committee Homepage]
==References==
{{reflist|2}}
[[Category:Politics]][[Category:United States Government]]