TPA Applauds the Limit, Save, Grow Act of 2023

For Immediate Release                                                   Contact: Abigail Graham: (202) 417-7235

April 20, 2023                                                                         

WASHINGTON, D.C. – Yesterday, House Republican leaders released their proposal to address the U.S. debt ceiling limit. The Taxpayers Protection Alliance (TPA) applauds House Speaker Kevin McCarthy (R-Calif.) for his proposal as the first step to stand up for American taxpayers and create commonsense solutions to avoid a default while also addressing the nation’s sky-high spending.

In response, David Williams, TPA President, offered the following comment:

“The Limit, Save, Grow Act of 2023 introduced by House GOP leadership is a strong start to addressing the nation’s deficit and debt. While the Democrats complain about the debt and point fingers, Speaker McCarthy is taking the necessary first step.

In January of this year, the U.S. hit its $31.4 trillion debt limit, meaning the Treasury Department has been resorting to extraordinary measures to continue obligatory spending on programs ranging from Social Security to military salaries. The risk of default endangers the US’ ability to pay for these critical services and could potentially lead to a drop in U.S. credit rating which will mean increased borrowing costs for government and consumers.  Failing to meet these obligations would reverberate through the global economy.

TPA applauds the bold steps Speaker McCarthy is taking to avoid this bleak outlook prior to the exhaustion of extraordinary measures this summer. The Limit, Save, Grow Act holds a simple principal: raise the debt ceiling, but also address bloated spending, largely initiated by the Biden Administration. If taxpayers are to see long-term benefit, the two must go together.

This legislation raises the debt ceiling by $1.5 trillion, or suspends it until March 31, 2024, whichever comes first. On discretionary spending, it brings the federal budget back to adopted levels for fiscal year 2022, or about $130 billion in cuts. The Limit, Save, Grow Act also takes necessary steps such as repealing the $80 billion in funding for the IRS authorized through the Inflation Reduction Act in August 2022. Further it puts a halt to President Biden’s $400 billion student loan forgiveness plan. A key part of the plan eliminates several green energy tax credits, which the Goldman Sachs Group estimates could save taxpayers as much as $1.2 trillion. Overall, the Limit, Save, Grow Act is estimated to reduce federal outlays by $4.5 trillion over 10 years by focusing on cutting reckless spending rather than raising taxes.

“While this is a clear path forward, the next steps are for long term spending cuts to be passed. The nonpartisan Congressional Budget Office (CBO) notes that in 2023, federal debt accounts for 98 percent of U.S. GDP. By 2053, the CBO projects that number will grow to 195 percent. This untenable outlook requires rapid, decisive action to preserve the nation’s long-term fiscal health. TPA strongly encourages leaders of both parties to face the music, put taxpayers above politics, pass the Limit, Save, Grow Act and engage in serious budget negotiations that ensure future generations can thrive in a healthy economy.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.