SUNSETtheIRS has obtained a copy of the following draft executive order from an anonymous source within the White House:
Article II, Section 3, of the Constitution requires me to faithfully execute the laws of the United States. Congress has made this duty impossible by enacting inconsistent laws: I cannot authorize spending required by Congress without violating the debt ceiling also enacted by Congress. Congress’ failure to raise the debt ceiling leaves me three choices: 1. default on the debt, 2. reduce federal spending below current federal revenue, or 3. increase federal revenue to fully pay for spending enacted by Congress.
The Constitution is the Supreme Law of the Land. The Fourteenth Amendment requires that “the validity of the debt of the United States … shall not be questioned.” Accordingly, as long as an option remains available that will prevent a default on the debt, I am compelled to execute that option and avoid a default.
In order to reduce federal spending below current federal revenue, I must selectively ignore spending required by Congress to reduce cash outflows from the Treasury by approximately forty percent. Reducing federal cash outflows by such drastic amounts in the current economic slow down will create too great of a danger. I cannot faithfully execute my constitutional duty by reducing spending in this manner.
The only reasonable option available to me as chief executive is to increase federal revenue to prevent further growth of the debt above the ceiling enacted by Congress. I have therefore determined that faithful execution of the laws under the Constitution requires me to end tax expenditures that reduce federal revenue. If forced to selectively execute laws duly passed by Congress in order to comply with the Constituion, I choose to tax and spend.
Therefore, I direct you to immediately issue regulations from the Internal Revenue Service terminating all tax expenditures and collecting revenue at duly-enacted tax rates without the benefit of deductions and credits provided by tax expenditures. This should provide the Treasury with a trillion dollars of extra revenue over the next year.
(Update 7/23/11 – Read the legal rational for impounding tax expenditures here: http://sunsettheirs.org/theory-of-inverse-impoundment )