Today I attended a “discussion of the debt limit and correcting our unsustainable fiscal path” with Sen. Pat Toomey (R-PA), hosted by the American Enterprise Institute.
Senator Toomey commented that although the White House initially urged Congress to “stop whining” and increase the debt limit without placing any conditions on the vote, it has since warmed to the idea of spending cuts. The Senator said he would vote to increase the debt limit, which was reached Monday, only if it came with spending cuts and process reforms.
I had the chance to ask the Senator which budget process reforms were necessary in order to secure his vote for a debt limit increase. As you can see from our exchange below, Sen. Toomey strongly backs a “real cuts” to the 2012 spending levels, statutory spending caps (perhaps like those contained in the bill sponsored by Senators McCaskill and Corker) and a balanced budget amendment to the Constitution (sponsored by Senators Hatch and Lee).
Toomey also stressed that the danger of default can be averted by prioritizing debt payments, and for that reason he introduced the Full Faith and Credit Act, a short bill codifying that the authority of the Treasury “to pay with legal tender the principal and interest on debt held by the public shall take priority over all other obligations incurred by the Government of the United States” once the statutory debt limit is reached. Toomey also introduced a budget plan in the Senate that would balance the books within a decade, but he conceded that the legislation would not make it through the Senate.
Among other interesting announcements, Toomey said the budget resolution introduced by Rep. Paul Ryan and passed by the House is “visionary” and that he would vote for it when it reaches the Senate.