Manzullo Explains The Debt Ceiling Legislation

Congressman Don Manzullo (R-Egan) today voted for legislation that would end our immediate debt crisis while controlling spending without tax increases while making a strong case that America should maintain its top AAA credit rating.

The Budget Control Act would cut spending in return for a limited increase in the debt ceiling. To increase the debt ceiling again by the amount the Administration says it needs to get through 2012, Congress would have to pass legislation and the President would have to sign it into law detailing another spending cut greater than the debt ceiling increase. The legislation would also require the House and Senate to pass a Balanced Budget Amendment and send it to the states for ratification before the second debt ceiling extension could be enacted. 

Moody’s Investor Service has indicated that any vote to raise the debt ceiling must be accompanied by significant spending cuts in order for the United States to maintain its strong AAA credit rating. A downgrade in the rating would be disastrous for our economy, costing taxpayers hundreds of billions of dollars in additional interest on the debt along with hikes in mortgage rates and other interest rates.

The Budget Control Act is supported by Citizens Against Government Waste, Americans for Tax Reform, the American Conservative Union, Club for Growth, the U.S. Chamber of Commerce, National Association of Manufacturers, National Federation of Independent Business, and many others.

STATEMENT

“This is not about Republicans or Democrats. It’s about doing what’s right for Americans. We need to lift our debt ceiling, but we need to do it in a way that maintains our AAA credit rating. If we are downgraded, our economy and our people will suffer. Moody’s Investor Service has stated that any solution to our debt crisis must include significant spending cuts. And that’s what we need to do – support a realistic approach that will make our economy healthy and strong. We passed another bill in the House today that offers a real solution. I encourage the Senate and President Obama to act accordingly so we can end this crisis and revive hope for an economic recovery that puts Americans back to work.”