–21 Senate GOP Propose New Balanced Budget Amendment
–Constitutional Amendment Would Cap Federal Spending At 20% of GDP
–Sen. Schumer: Must Use ‘Precise Scalpel’ Not ‘Meat Axe’ To Spend Cuts
–Sen. Schumer: Can’t Balance Budget Just By Spending Cuts; Need Growth
–Sen. Durbin: Obama ‘Moving Closer’ to Simpson-Bowles Report

By John Shaw

WASHINGTON (MNI) – In the aftermath of President Obama’s State of
the Union address and on the day of the Congressional Budget Office’s
grim new economic and budget report, Senate Democrats and Republicans
Wednesday stepped up their battle over the budget.

A group of 21 Senate Republicans, led by Sen. Orrin Hatch, the top
Republican on the Finance Committee, unveiled at a briefing a new
version of a constitutional amendment to balance the federal budget.

Under the proposed amendment, federal spending would eventually be
capped at 20% of GDP and the federal government would be required to
balance its budget unless Congress votes to waive the requirement due to
war or economic emergency.

Hatch said that, “Washington has proved that it won’t solve this
crisis on its own,” arguing that a constitutional requirement is needed.

Two members of the Senate Democratic leadership team, Senate
Majority Whip Dick Durbin and Sen. Chuck Schumer, blasted the GOP at a
briefing for pushing policies that focus exclusively on spending cuts.

“We have to cut government,” Schumer said, but added that what is
needed is a “sharp but precise scalpel” not a “meat axe” to cutting
spending.

He also said that a growing economy is imperative. “If we don’t
grow, nothing will happen,” he said.

Durbin said he is eager to study the details of the newest version
of the balanced budget amendment, but said he is wary of “rushing to
amend the constitution.”

He said he fears an approach that is like “taking a roller to a
Rembrandt.”

Durbin said that he believes that President Obama’s fiscal comments
in his speech should be seen as part of a “process,” adding that he
believes the president is “moving closer” to the findings of the
Simpson-Bowles report.

** Market News International Washington Bureau: (202) 371-2121 **

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