Budget Toughness Bill in Balance

With members of Congress concerned about its impact on tax cuts and Social Security, a key supporter of the Budget Enforcement Act, to be considered by the House later this week, acknowledged Monday that proponents of the plan have hurdles to overcome.

"I fully expect that someone opposed [to the legislation] could play the Social Security card," said Rep. David Minge, D- Minn., while declaring, "It's a phony issue."

Minge is the main Democratic sponsor of the bill, while Rep. Joe Barton, R-Texas, is leading the GOP effort.

Under the bill, Congress would include spending, revenue and deficit targets in the annual budget resolution, and Congress and the president would be required to meet those targets in their budgets.

At the end of the year, the OMB would report whether targets in the three categories were met.

If the targets were not met, Congress would be required to pass legislation making up the spending. If entitlement spending exceeded the targets, cuts in those programs would be required.

And, if revenue fell short, any new tax cuts could be delayed.

The legislation has not been considered by any House committee, but House GOP leaders guaranteed bill supporters a vote on the bill this month, in an effort to convince them to vote for the balanced budget deal.

Supporters of the plan include The Coalition, a group of moderate-to-conservative Democrats known as the Blue Dogs, along with some moderate Republicans and GOP deficit hawks.

"In a way, this is a real grassroots effort," Minge said, adding neither Democratic nor Republican leaders are pushing members to support the bill.

A Barton aide said GOP leaders have been "officially neutral", a position an aide to another bill supporter said indicates leaders are effectively "sabotaging" the legislation.

The Barton aide added that the bill was the "best deal" deficit hawks could get.

Bill supporters concede many Democrats are raising concerns that Social Security would not be exempt from sequestration, while Republicans are expressing concern about tax cuts being delayed.

House Budget Chairman Kasich, who has said he would pursue budget enforcement efforts on his own, opposes the bill, an aide said Monday.

The aide added that Kasich is worried tax cut legislation could be delayed.

However, Minge said the bill is "very consistent with what Chairman Kasich has stood for."

The Barton aide said that all revene figures show revenue exceeding projections, so tax cut supporters do not need to worry about the impact on tax cuts.

Minge said he considers passage of the bill a true test of Congress' willingness to impose budget discipline. However, he said some supporters want "more teeth" in the bill.

Minge left open the possibility that some members might oppose tax cut or budget reconciliation legislation if budget enforcement procedures are not set.