WASHINGTON —
The Concord Coalition today urged the House of
Representatives to join the Senate in approving an increase in the statutory
debt limit. According to Treasury officials, the current $5.95 trillion debt
limit will be reached by the end of the week. Without additional borrowing
authority, or further extraordinary accounting maneuvers, the government will
not be able to fully meet its obligations.
WASHINGTON —
The Concord Coalition today urged the House of
Representatives to join the Senate in approving an increase in the statutory
debt limit. According to Treasury officials, the current $5.95 trillion debt
limit will be reached by the end of the week. Without additional borrowing
authority, or further extraordinary accounting maneuvers, the government will
not be able to fully meet its obligations.
“It is clear that the debt limit must be
increased. The Senate has acted and now it is up to the House. Republicans and
Democrats alike should put the nation’s creditworthiness ahead of political
considerations. Forcing a damaging and totally unnecessary debt crisis by
failing to act would be a complete abdication of responsibility,” said Robert
Bixby, Executive Director of The Concord Coalition.
“The Concord Coalition shares the concerns of
those who are reluctant to approve a large debt limit increase without a broader
balanced budget plan. It should be noted, however, that fiscal policy decisions
— including last year’s tax bill — had much less to do with the recent surge in
borrowing needs than did a slumping economy. The unique circumstances of the
past year justify a modest immediate debt limit increase, even as politicians
engage in a needed debate over the future of fiscal policy. In the meantime,
fiscal responsibility does not require forcing the Treasury Secretary to choose
between default and accounting gimmicks,” Bixby said.
“Some in the House have insisted that the debt
limit increase must be added to the FY2002 supplemental spending bill to make it
politically palatable. Even if this proposition is true, the time is fast
approaching when the House must act regardless of perceived political
ramifications. It is conceivable that a fiscally responsible agreement can be
reached this week to combine the debt limit increase with the supplemental
spending bill, a set of discretionary spending caps for FY2003-04, and renewal
of expiring budget enforcement mechanisms. But if no agreement is reached, or if
it becomes clear that no agreement will be reached, the House must be prepared
to act on a stand alone debt limit increase in time to avoid a crisis,” Bixby
said.
The Concord Coalition is a nonpartisan, grass
roots organization dedicated to balanced federal budgets and generationally
responsible fiscal policy. Former U.S. Senators Warren Rudman (R-NH) and Bob
Kerrey (D-NE) serve as Concord’s co-chairs and former Secretary of Commerce
Peter Peterson serves as president.
