Rep Gardner on Budget Reduction Act of 2011
WASHINGTON D.C. – Following a vote to pass the Budget Reduction Act of 2011 by 218 to 210, Congressman Cory Gardner (R-CO) released the following statement:
“While no plan is perfect, this meets the standards we set forth in the cut, cap and balance proposal. It achieves 70 percent of the discretionary spending cuts that were in the House-passed budget. It calls for a vote on the Balanced Budget Amendment, avoids default on our obligations, cuts more than it increases the debt ceiling and rejects the President’s call for tax increases. Most importantly, however, this plan changes Washington’s spending culture by shrinking the size of the federal government, which has done nothing but grow for the past 40 years.
“The American people have been demanding a plan, and the House has now passed two. The President talks of grand bargains and compromise but has failed to lead or even introduce a detailed plan of his own to reduce the debt and deficit.”
Coffman Statement on Vote to Cut Spending, Raise Debt Limit and Mandate a Federal Balanced Budget
(WASHINGTON) – Congressman Mike Coffman (R-CO) released the following statement today after voting in favor of the Budget Control Act of 2011, which responsibly cuts government spending in amounts in excess of the debt ceiling increase, requires passage of a balanced budget amendment, and prevents a U.S. default that would harm our nation’s private-sector job creators.
“We must use this opportunity to force substantial and meaningful reform. The American people simply have more government than they can possibly afford.”
The Budget Control Act ensures the U.S. meets its financial obligations without tax increases, while still cutting spending by $917 billion over the next 10 years. In 2012, the measure achieves $22 billion in spending cuts and it keeps spending below last year’s levels until 2016.
The bill also makes sure that if any tax increases are brought up again in debt ceiling negotiations that the House can handily vote them down. “Adding to the taxpayer’s burden in the form of increased taxes won’t create a single job. Increased revenues should only come from an expanding economy,”
The only credible financial plan presented so far, the Budget Control Act guarantees that a balanced budget amendment is approved by both the House and Senate and sent to the fifty states for ratification before the debt ceiling is increased again. In addition, it ensures that Congress comes up with a proposal by the end of the year to reduce the deficit by at least $1.8 trillion more over the next ten years. These types of reforms will force long-term accountability and spending control.
“I agree that we need to reform our tax code and I support eliminating a number of tax deductions and credits, and closing tax loopholes, in exchange for a reduction in marginal tax rates. But, I differ with my colleagues on the other side of the aisle because my position is that this reform should be revenue neutral, while the congressional Democrats desperately want to increase taxes to close the deficit.”
Press Release by Democratic Congressional Campaign Committee
Representative Cory Gardner Votes For Higher Interest Rates for Consumers
Tonight, Representative Cory Gardner (CO-04) bowed to arm twisting from Republican leaders and voted for a new proposal that could recklessly raises interest rates for consumers — raising costs of credit cards, car loans, and mortgages. Gardner backed this controversial proposal that could jeopardize the nation’s AAA credit rating and raise interest rates for consumers instead of finally standing up to his Republican leadership and demanding Big Oil and multi-millionaires pay their fair share.
“Representative Cory Gardner chose to increase interest rates – raising costs for credit cards, car loans and even mortgages – instead of standing up to Republican leadership’s arm twisting,” said Jesse Ferguson of the Democratic Congressional Campaign Committee. “Republican leaders begged Representative Cory Gardner to back a plan that could doom our economy to credit downgrade and cause interest rates to spike all so they can continue protecting tax breaks for Big Oil and multi-millionaires. It’s the worst possible time for Representative Gardner to vote for a plan that could raise interest rates for middle class families.”
Leading economists have also made clear that Gardner and House Republicans failing to raise the nation’s credit limit could result in stock prices and pensions falling, home sales plummeting, Social Security checks stopping.
Cory Gardner voted for the Speaker Boehner’s Short Term Default Act. [S. 627, Vote #677 , 7/29/11]
Boehner’s Plan Could Still Mean a Downgrade of the Country’s AAA Credit Rating. On July 25, 2011, CNN’s Erin Burnett reported: “I was talking to an investor who had met with the ratings agencies at Standard & Poor’s talking about the potential of a downgrade — which, by the way, could raise interest rates just the same way a potential default could — and they said the Boehner plan probably wouldn’t hit the hurdle to prevent a downgrade. So that even if that deal was reached, you could still get a downgrade. It is unclear whether that would happen for sure, but that would be a real possibility.” [CNN, 7/25/11 ]
Credit Rating Downgrade is Effectively a Tax Hike. “With a lower credit rating, the theory is that investors will insist on being paid a higher yield to buy our Treasury debt. […] A new report from JP Morgan Chase <http://www.bloomberg.com/news/2011-07-26/u-s-downgrade-may-raise-interest-cost-by-100-billion-jpmorgan-says.html> says a 60 to 70 basis point rise in lending rates could end up costing the U.S. an extra $100 billion in interest payments on Treasury debt. <http://moneywatch.bnet.com/economic-news/blog/daily-money/politicians-playing-costly-game-of-chicken-with-the-debt-ceiling/3067/> Standard & Poor’s came to the same $100 billion conclusion <http://moneywatch.bnet.com/economic-news/blog/daily-money/politicians-playing-costly-game-of-chicken-with-the-debt-ceiling/3067/> nearly a month ago. For all the rhetoric about no new taxes, a downgrade that causes our borrowing costs to rise is effectively a tax hike. Same goes for states and municipalities; if there is a general rise in interest rates triggered by a downgrade, that impacts the borrowing costs for cities and states. Depending on the health of municipal coffers where you live, that could end up meaning higher taxes, or reduced services.” [CBS, 7/27/11 <http://moneywatch.bnet.com/economic-news/blog/daily-money/top-6-ways-a-us-credit-rating-downgrade-could-cost-americans/3185/>]
Credit Card and College Loans Rates Would Likely Rise. “Any variable rate borrowing you do — from an unpaid credit card balance, to private college loans — would likely rise along with any move that pushes the prime rate higher.” [CBS, 7/27/11 <http://moneywatch.bnet.com/economic-news/blog/daily-money/top-6-ways-a-us-credit-rating-downgrade-could-cost-americans/3185/>]
Mortgage Rates Would Rise. “Same theory applies here. As rates rise, so, too, do mortgage rates. Just what the housing market doesn’t need right about now.” [CBS, 7/27/11 <http://moneywatch.bnet.com/economic-news/blog/daily-money/top-6-ways-a-us-credit-rating-downgrade-could-cost-americans/3185/>]
Mark Zandi: Failing to Raise the Debt Ceiling Will Throw Our Economy into Recession. Mark Zandi, chief economist at Moody’s Analytics has said that failure to raise the debt ceiling “would do serious damage” to the economy. “At the end of the day if we don’t raise the debt ceiling, the economy’s going to go back into recession. Interest rates are going to spike,” said Zandi. “It will unhinge the already very fragile collective psyche.” [CBS News, 6/28/11 <http://www.cbsnews.com/stories/2011/06/28/eveningnews/main20075228.shtml>; Associated Press, 6/27/11 <http://abcnews.go.com/Business/wireStory?id=13938983>]