New Democrat Coalition Leaders Offer Common-Sense Solutions on Debt Limit
As the House majority inches closer to a dangerous strategy of using the full faith and credit of the United States as a bargaining chip in high-stakes budget negotiations, New Democrat Coalition Members have stepped forward to offer key solutions that Members believe will help to break the gridlock.
“I am pleased to see my New Democrat Coalition colleagues taking an active role in finding workable solutions to ensure that Congress responsibly raises the debt limit,” said New Democrat Coalition Chair Rep. Ron Kind (WI-03). “We risk becoming a deadbeat nation that doesn’t fulfill its obligations. Now more than ever, we must work to make the targeted, smart spending cuts that will preserve key investments that keep America competitive while tackling the problem of our long-term debt.”
“We must move beyond the brinkmanship that undermined our economic recovery two years ago,” said New Democrat Coalition Vice-Chair Rep. Allyson Schwartz (PA-13). “Democrats and Republicans should work together to meet our responsibilities, pay our bills and create an environment for economic growth.”
“The world economy depends on the idea that the debt of the American government is literally risk free, but the House majority is ready to call that stability into question just so they can repeat an ideological fight they have already lost multiple times. I urge my colleagues on the Republican side to recognize the severity of their threats and make the adult choice to raise the debt limit without condition or delay,” said New Democrat Coalition Vice-Chair Rep. Jim Himes (CT-04).
“Defaulting on our debt is not an option, but if we do, paychecks for Members of Congress also shouldn’t be an option. Congress should be paid for performance, not failure. The last time we played ‘chicken’ with the debt ceiling, our credit suffered as a result. That’s failure,” said New Democrat Coalition Tax Reform and Fiscal Responsibility Task Force Co-Chair Rep. Jim Cooper (TN-05)
“As a country, we must pay for what we’ve already spent,” said New Democrat Rep. Scott Peters (CA-52). “It is time for real reforms that get the politics out of the debt ceiling so we protect the job gains of the last few years and maintain the country’s credit rating. We saw in 2011 what happens when we even get close to a default – a credit downgrade, a stock market tumble and hampered job growth. This is a viable, reasonable solution to avoid that situation in the future.”
New Dem Solutions for the Debt Limit:
H.R. 1884 – “Stop Pay for Members Act” (Rep. Jim Cooper) This bill would prevent Members of Congress from being paid if the U.S. defaults on its debt. According to the Bipartisan Policy Center, if we should default, the Treasury Department must choose which of the roughly 100 million monthly payments need to be made with the limited revenue available. The Stop Pay for Members Act would place Members of the House and Senate last on the list, ensuring that Members would not be paid in the event of a default. A version of H.R. 1884 passed with a solid bipartisan majority of 340 votes in May.
H.R. 3148 – “Protect America’s Credit Act of 2013” (Rep. Scott Peters) This legislation would index the debt limit to GDP, so that Congress would not need to approve legislation increasing the debt limit as long as the debt remains on a stable or declining path as a share of GDP. This bill has received the support of former Sen. Alan Simpson and Erskine Bowles.
H.R. 3149 – “Pay Down the Debt Act of 2013” (Rep. Scott Peters) This legislation would require the president to submit legislative recommendations that would stabilize the debt if OMB projects the debt will grow faster than the economy. The bill would require the Congressional budget resolution to include instructions for changes in tax and spending law to stabilize the debt if CBO projected that the debt will grow faster than the economy.
The New Democrat Coalition is dedicated to maintaining America’s standing as the world’s strongest, most successful nation. Founded in 1997, the New Dems believe firmly in the power of American ingenuity and innovation, and are focused on finding ways to foster and harness this creativity to grow our economy, create new American jobs, and ensure a safer and more secure future for our country.
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