Senator Proposes Deficit Fix

Mike Lee's "Cut, Cap, and Balance," would reduce spending and set it at a maximum of 18 percent of GDP

Last year, House and Senate Republicans pushed a deficit reduction proposal, dubbed "Cut, Cap, and Balance," which would have cut mandatory and discretionary spending, capped federal spending at 18% of GDP, and required passage of the Balanced Budget Amendment. The plan, which had the backing of several prominent groups in the conservative movement, passed in the House; but unfortunately, it failed in the Democrat-controlled Senate.

Undeterred by the expected setback, several conservative members in both chambers have continued to push the idea. Sen. Mike Lee (R-UT), a Tea Party favorite, announced on Wednesday that he is reintroducing an updated version of "Cut, Cap, and Balance."