Deal on Debt Ceiling
Statements and Reactions July 31-August 1, 2011

President Barack Obama
James S. Brady Press Briefing Room
The White House
July 31, 2011

8:40 P.M. EDT
 
 
     THE PRESIDENT:  Good evening.  There are still some very important votes to be taken by members of Congress, but I want to announce that the leaders of both parties, in both chambers, have reached an agreement that will reduce the deficit and avoid default -- a default that would have had a devastating effect on our economy.
 
The first part of this agreement will cut about $1 trillion in spending over the next 10 years -- cuts that both parties had agreed to early on in this process.  The result would be the lowest level of annual domestic spending since Dwight Eisenhower was President -- but at a level that still allows us to make job-creating investments in things like education and research.  We also made sure that these cuts wouldn’t happen so abruptly that they’d be a drag on a fragile economy. 
 
Now, I've said from the beginning that the ultimate solution to our deficit problem must be balanced.  Despite what some Republicans have argued, I believe that we have to ask the wealthiest Americans and biggest corporations to pay their fair share by giving up tax breaks and special deductions.  Despite what some in my own party have argued, I believe that we need to make some modest adjustments to programs like Medicare to ensure that they’re still around for future generations. 
 
That's why the second part of this agreement is so important.  It establishes a bipartisan committee of Congress to report back by November with a proposal to further reduce the deficit, which will then be put before the entire Congress for an up or down vote.  In this stage, everything will be on the table. To hold us all accountable for making these reforms, tough cuts that both parties would find objectionable would automatically go into effect if we don’t act.  And over the next few months, I’ll continue to make a detailed case to these lawmakers about why I believe a balanced approach is necessary to finish the job. 
 
Now, is this the deal I would have preferred?  No.  I believe that we could have made the tough choices required -- on entitlement reform and tax reform -- right now, rather than through a special congressional committee process.  But this compromise does make a serious down payment on the deficit reduction we need, and gives each party a strong incentive to get a balanced plan done before the end of the year. 
 
Most importantly, it will allow us to avoid default and end the crisis that Washington imposed on the rest of America.  It ensures also that we will not face this same kind of crisis again in six months, or eight months, or 12 months.  And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy.  
 
Now, this process has been messy; it’s taken far too long.  I've been concerned about the impact that it has had on business confidence and consumer confidence and the economy as a whole over the last month.  Nevertheless, ultimately, the leaders of both parties have found their way toward compromise.  And I want to thank them for that. 
 
Most of all, I want to thank the American people.  It’s been your voices -- your letters, your emails, your tweets, your phone calls -- that have compelled Washington to act in the final days. And the American people's voice is a very, very powerful thing. 
 
We’re not done yet.  I want to urge members of both parties to do the right thing and support this deal with your votes over the next few days.  It will allow us to avoid default.  It will allow us to pay our bills.  It will allow us to start reducing our deficit in a responsible way.  And it will allow us to turn to the very important business of doing everything we can to create jobs, boost wages, and grow this economy faster than it's currently growing. 
 
That’s what the American people sent us here to do, and that’s what we should be devoting all of our time to accomplishing in the months ahead. 
 
Thank you very much, everybody.
 

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FACT SHEET from the White House

FOR IMMEDIATE RELEASE

July 31, 2011

BIPARTISAN DEBT DEAL: A WIN FOR THE ECONOMY AND BUDGET DISCIPLINE

The debt deal announced today is a victory for bipartisan compromise, for the economy and for the American people. The agreement:

·         Removes the cloud of uncertainty over our economy at this critical time, by ensuring that no one will be able to use the threat of the nation’s first default now, or in only a few months, for political gain;

·         Locks in a down payment on significant deficit reduction, with savings from both domestic and Pentagon spending, and is designed to protect crucial investments like aid for college students;

·         Establishes a bipartisan process to seek a balanced approach to larger deficit reduction through entitlement and tax reform;

·         Deploys an enforcement mechanism that gives all sides an incentive to reach bipartisan compromise on historic deficit reduction, while protecting Social Security, Medicare beneficiaries and low-income programs;

·         Stays true to the President’s commitment to shared sacrifice by preventing the middle class, seniors and those who are most vulnerable from shouldering the burden of deficit reduction. The President did not agree to any entitlement reforms outside of the context of a bipartisan committee process where tax reform will be on the table and the President will insist on shared sacrifice from the most well-off and those with the most indefensible tax breaks.

Mechanics of the Debt Deal

 
·         Immediately enacted 10-year discretionary spending caps generating nearly $1 trillion in deficit reduction; balanced between defense and non-defense spending.
 
·         President authorized to increase the debt limit by at least $2.1 trillion, eliminating the need for further increases until 2013.  

·         Bipartisan committee process tasked with identifying an additional $1.5 trillion in deficit reduction, including from entitlement and tax reform. Committee is required to report legislation by November 23, 2011, which receives fast-track protections. Congress is required to vote on Committee recommendations by December 23, 2011.
 
·         Enforcement mechanism established to force all parties – Republican and Democrat – to agree to balanced deficit reduction. If Committee fails, enforcement mechanism will trigger spending reductions beginning in 2013 – split 50/50 between domestic and defense spending. Enforcement protects Social Security, Medicare beneficiaries, and low-income programs from any cuts.    
 
 
1.      REMOVING UNCERTAINTY TO SUPPORT THE AMERICAN ECONOMY

·         Deal Removes Cloud of Uncertainty Until 2013, Eliminating Key Headwind on the Economy: Independent analysts, economists, and ratings agencies have all made clear that a short-term debt limit increase would create unacceptable economic uncertainty by risking default again within only a matter of months and as S&P stated, increase the chance of a downgrade. By ensuring a debt limit increase of at least $2.1 trillion, this deal removes the specter of default, providing important certainty to our economy at a fragile moment.

·         Mechanism to Ensure Further Deficit Reduction is Designed to Phase-In Beginning in 2013 to Avoid Harming the Recovery: The deal includes a mechanism to ensure additional deficit reduction, consistent with the economic recovery. The enforcement mechanism would not be made effective until 2013, avoiding any immediate contraction that could harm the recovery. And savings from the down payment will be enacted over 10 years, consistent with supporting the economic recovery.
 
 
2.      A DOWNPAYMENT ON DEFICIT REDUCTION BY LOCKING IN HISTORIC SPENDING DISCIPLINE – BALANCED BETWEEN DOMESTIC AND PENTAGON SPENDING

·         More than $900 Billion in Savings over 10 Years By Capping Discretionary Spending: The deal includes caps on discretionary spending that will produce more than $900 billion in savings over the next 10 years compared to the CBO March baseline, even as it protects core investments from deep and economically damaging cuts.
 
·         Includes Savings of $350 Billion from the Base Defense Budget – the First Defense Cut Since the 1990s: The deal puts us on track to cut $350 billion from the defense budget over 10 years. These reductions will be implemented based on the outcome of a review of our missions, roles, and capabilities that will reflect the President’s commitment to protecting our national security.
 
·         Reduces Domestic Discretionary Spending to the Lowest Level Since Eisenhower: These discretionary caps will put us on track to reduce non-defense discretionary spending to its lowest level since Dwight Eisenhower was President.

·         Includes Funding to Protect the President’s Historic Investment in Pell Grants: Since taking office, the President has increased the maximum Pell award by $819 to a maximum award $5,550, helping over 9 million students pay for college tuition bills. The deal provides specific protection in the discretionary budget to ensure that the there will be sufficient funding for the President’s historic investment in Pell Grants without undermining other critical investments.


3.      ESTABLISHING A BIPARTISAN PROCESS TO ACHIEVE $1.5 TRILLION IN ADDITIONAL BALANCED DEFICIT REDUCTION BY THE END OF 2011

·         The Deal Locks in a Process to Enact $1.5 Trillion in Additional Deficit Reduction Through a Bipartisan, Bicameral Congressional Committee: The deal creates a bipartisan, bicameral Congressional Committee that is charged with enacting $1.5 trillion in additional deficit reduction by the end of the year. This Committee will work without the looming specter of default, ensuring time to carefully consider essential reforms without the disruption and brinksmanship of the past few months.

·         This Committee is Empowered Beyond Previous Bipartisan Attempts at Deficit Reduction: Any recommendation of the Committee would be given fast-track privilege in the House and Senate, assuring it of an up or down vote and preventing some from using procedural gimmicks to block action.

·         To Meet This Target, the Committee Will Consider Responsible Entitlement and Tax Reform. This means putting all the priorities of both parties on the table – including both entitlement reform and revenue-raising tax reform.


4.      A STRONG ENFORCEMENT MECHANISM TO MAKE ALL SIDES COME TOGETHER
 
·         The Deal Includes An Automatic Sequester to Ensure That At Least $1.2 Trillion in Deficit Reduction Is Achieved By 2013 Beyond the Discretionary Caps: The deal includes an automatic sequester on certain spending programs to ensure that—between the Committee and the trigger—we at least put in place an additional $1.2 trillion in deficit reduction by 2013.
 
·         Consistent With Past Practice, Sequester Would Be Divided Equally Between Defense and Non-Defense Programs and Exempt Social Security, Medicaid, and Low-Income Programs: Consistent with the bipartisan precedents established in the 1980s and 1990s, the sequester would be divided equally between defense and non-defense program, and it would exempt Social Security, Medicaid, unemployment insurance, programs for low-income families, and civilian and military retirement. Likewise, any cuts to Medicare would be capped and limited to the provider side.
 
·         Sequester Would Provide a Strong Incentive for Both Sides to Come to the Table:  If the fiscal committee took no action, the deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and, at the same time, it would cut critical programs like infrastructure or education.  That outcome would be unacceptable to many Republicans and Democrats alike – creating pressure for a bipartisan agreement without requiring the threat of a default with unthinkable consequences for our economy.
 

5.      A BALANCED DEAL CONSISTENT WITH THE PRESIDENT’S COMMITMENT TO SHARED SACRIFICE

·         The Deal Sets the Stage for Balanced Deficit Reduction, Consistent with the President’s Values: The deal is designed to achieve balanced deficit reduction, consistent with the values the President articulated in his April Fiscal Framework. The discretionary savings are spread between both domestic and defense spending. And the President will demand that the Committee pursue a balanced deficit reduction package, where any entitlement reforms are coupled with revenue-raising tax reform that asks for the most fortunate Americans to sacrifice.  
 
·         The Enforcement Mechanism Complements the Forcing Event Already In Law – the Expiration of the Bush Tax Cuts – To Create Pressure for a Balanced Deal: The Bush tax cuts expire as of 1/1/2013, the same date that the spending sequester would go into effect. These two events together will force balanced deficit reduction. Absent a balanced deal, it would enable the President to use his veto pen to ensure nearly $1 trillion in additional deficit reduction by not extending the high-income tax cuts.

·         In Securing this Bipartisan Deal, the President Rejected Proposals that Would Have Placed the Sole Burden of Deficit Reduction on Low-Income or Middle-Class Families: The President stood firmly against proposals that would have placed the sole burden of deficit reduction on lower-income and middle-class families. This includes not only proposals in the House Republican Budget that would have undermined the core commitments of Medicare to our seniors and forced tens of millions of low-income Americans to go without health insurance, but also enforcement mechanisms that would have forced automatic cuts to low-income programs. The enforcement mechanism in the deal exempts Social Security, Medicaid, Medicare benefits, unemployment insurance, programs for low-income families, and civilian and military retirement.

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FACT SHEET from Speaker of the House John Boehner

Summary of the Revised Budget Control Act of 2011

Washington (Aug 1)

The final agreement to cut spending and avoid default meets Republicans’ criteria to (1) cut government spending more than it increases the debt limit; (2) implement spending caps to restrain future spending; and (3) advance the cause of a Balanced Budget Amendment – all without tax hikes on families and job creators.  It is largely consistent with the bill House Republicans passed last Friday, and reflects the principles of Cut, Cap, & Balance.  Here is more information on the measure:

NO TAX HIKES

Same as the House-passed bill, the measure includes no tax hikes, a key principle that Republicans have fought for since day one.  As further protection against any tax hikes, the Joint Committee of Congress (described below) will work off a current-law baseline.  The committee would have to raise taxes by more than $3.5 trillion above today’s rates before it would begin to count as ‘deficit reduction.’  Since that is unlikely, there is little chance the Joint Committee will produce a bill that increases taxes. 

CUTS THAT EXCEED THE DEBT HIKE

The final agreement is the same as the House-passed bill by including spending cuts that would exceed the amount of the increased debt authority granted to the President.  The bill would cut and cap discretionary spending immediately, saving $917 billion over 10 years – as certified by the nonpartisan Congressional Budget Office CBO) – and raise the debt ceiling by less – $900 billion – to approximately February.  Congress must vote to cut spending FIRST.  Then, the President may ask for debt authority of up to $900 billion, which will be subject to a vote of disapproval by the House and Senate that can be vetoed by the President.

CAPS TO CONTROL FUTURE SPENDING

The final agreement is the same as the House-passed bill by imposing spending caps that would establish clear limits on future spending and serve as a barrier against government expansion while the economy grows.  Failure to remain below these caps will trigger automatic across-the-board cuts (otherwise known as sequestration).  This is the same mechanism used in the 1997 Balanced Budget Agreement.  The one difference between this and the House-passed bill: the House bill had a firewall that separated defense from non-defense spending.  Now the firewall separates security spending from non-security spending.  This would be for FY 2012 & 2013, and allows Republicans to protect defense funding while cutting other security spending, such as foreign aid.

BALANCED BUDGET AMENDMENT

The bill advances the cause of a Balanced Budget Amendment by requiring the House and Senate to vote on the measure after October 1, 2011 but before the end of the year, allowing the American people time to build sufficient support for this popular reform.  This is the same as the House-passed bill.  Also, similar to the House-passed bill, the measure authorizes the President to request a second tranche of debt limit increase of $1.5 trillion if the Joint Committee’s proposal is enacted OR if a Balanced Budget Amendment is sent to the states.

ENTITLEMENT REFORMS & SAVINGS 

The final agreement is the same as the House-passed bill by creating a 12-member Joint Committee of Congress that is required to report legislation – by November 23, 2011 – that would produce a proposal to reduce the deficit by at least $1.5 trillion over 10 years.  Each chamber would consider the proposal of the Joint Committee on an up-or-down basis without any amendments by December 23, 2011.  Similar to the House-passed bill, if the Joint Committee’s proposal is enacted OR if a Balanced Budget Amendment is sent to the states, the President would be authorized to request a debt limit increase of $1.5 trillion.  As further protection against any tax hikes, the Joint Committee will work off a current-law baseline.  The committee would have to raise taxes by more than $3.5 trillion above today’s rates before it would begin to count as ‘deficit reduction.’  Since that is unlikely, there is little chance the Joint Committee will produce a bill that increases taxes. 

The final agreement sets up a new sequestration process to cut spending across-the-board – and ensure that any debt limit increase is met with greater spending cuts – IF the Joint Committee fails to achieve at least $1.2 trillion.  If this happens, then the President may request up to $1.2 trillion for a debt limit increase (note: this is less than the $1.5 trillion cited above).  Assuming the President is able to increase the debt limit by $1.2 trillion (contingent upon the congressional disapproval process), then across-the-board spending cuts would result that would equal the difference between $1.2 trillion and the deficit reduction enacted as a result of the Joint Committee.

The across-the-board spending cuts would apply to FYs 2013-2021, and apply to both mandatory and discretionary programs.  The final agreement specifies that total reductions would be equally split between defense and non-defense programs.  The across-the-board cuts would also apply to Medicare.  However, several programs would be exempted from across-the-board cuts, including Social Security.

The sequestration process does NOT trigger increased revenues.  It can only result in spending cuts, not tax increases.

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For Immediate Release
July 31, 2011
Contact: Alice Stewart

Bachmann Responds to President Obama's
Statement on Proposed Debt Limit Deal
Urbandale, Iowa — Republican presidential candidate Michele Bachmann issued the following response to President Obama's statement on the proposed debt limit deal:

"Mr. President, I'm not sure what voice you're listening to, but I can assure you that the voice of the American people wasn't the 'voice that compelled Washington to act.' It was you that got us into this mess, and it was you who wanted a $2.4 trillion dollar blank check to get you through the election. Everywhere I travel across the country, Americans want less spending, lower taxes to create jobs, and they don't want us to raise the debt ceiling.

"The President continues to press for a 'balanced approach,' which everyone knows is code for increased spending and taxes. Throughout this process the President has failed to lead and failed to provide a plan. The 'deal' he announced spends too much and doesn't cut enough. This isn't the deal the American people 'preferred' either, Mr. President. Someone has to say no. I will."

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FOR IMMEDIATE RELEASE
July 31, 2011
Contact: Tim Miller
Governor Jon Huntsman Statement on Debt Ceiling Deal

"While this framework is not my preferred outcome, it is a positive step toward cutting our nation's crippling debt.

"Because the legislation promises cuts commensurate with the debt ceiling increase, forces a vote on a much-needed federal balanced budget amendment and provides the only avenue to avoid default, I encourage members of Congress to vote for this legislation.

"While some of my opponents ducked the debate entirely, others would have allowed the nation to slide into default and President Obama refused to offer any plan, I have been proud to stand with congressional Republicans working for these needed and historic cuts. A debt crisis like this is a time for leadership, not a time for waiting to see which way the political winds blow.

"Going forward, I will aggressively advocate for a plan from the congressional committee that includes real cuts, entitlement reform, and revenue-neutral tax reforms -- without any tax hikes.

"The Republican members of Congress deserve tremendous credit for moving this debate to the forefront and at long last beginning to get Washington in line."


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FOR IMMEDIATE RELEASE	CONTACT: Romney Press Office
August 1, 2011

MITT ROMNEY ISSUES STATEMENT ON DEBT CEILING DEAL

Boston, MA – Mitt Romney issued the following statement today on the deal to raise the debt ceiling:
 

“As president, my plan would have produced a budget that was cut, capped and balanced – not one that opens the door to higher taxes and puts defense cuts on the table. President Obama’s leadership failure has pushed the economy to the brink at the eleventh hour and 59th minute. While I appreciate the extraordinarily difficult situation President Obama’s lack of leadership has placed Republican Members of Congress in, I personally cannot support this deal.”
 

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August 1, 2011

PRESIDENTIAL CANDIDATE GARY JOHNSON: DEBT DEAL KICKING THE CAN DOWN THE ROAD

August 1, 2011, Santa Fe, New Mexico – Presidential Candidate Gary Johnson released the following statement regarding the Debt Limit increase agreement.

"The sound America is hearing today is the sound of the can being kicked down the road -- again. The result of this agreement is that the debt ceiling will be $900 billion higher tomorrow than it is today, and the nation's actual debt higher at the end of the year than it is now. Only in Washington is such a deal something to be celebrated as an accomplishment. 

"Nowhere to be found in this deal are the entitlement reforms, structural changes in government, or the immediate and real spending cuts that must be made to actually put our financial house in order.  I doubt the markets will be impressed, and I know the American people won't be impressed."

Please contact Sue Winchester or Lizz Renda at Media@GaryJohnson2012.com or 801.303.7924 to schedule an interview with Gary Johnson.  For more information visit www.garyjohnson2012.com.
 

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August 1, 2011

NEWT GINGRICH STATEMENT ON DEBT CEILING DEAL

Atlanta, GA - Newt Gingrich released the following statement today reacting to news of a debt limit agreement:

“Avoiding default is not a solution to America’s jobs and debt crisis. This agreement only sets the stage for an enormous amount of work going forward – well beyond the next two years - on how to create jobs, reduce government spending, return to balanced budgets and pay off our debt.

“If the ultimate result of this deal is a tax increase and/or debilitative cuts in our investment in national security, it will be a destructive failure. With so much work remaining to be done, this deal is yet another reminder of the urgent need to replace President Obama and his radical commitment to big government and higher taxes.

“As President, I will approach solving America’s debt crisis by adhering to three principles.

1. Job creation must be job one. The most pressing challenge facing America is the crisis of the Obama depression. Therefore, all deficit reduction efforts must be made in the context of what would best return America to robust, long-term economic growth and job creation. This means that raising taxes must be off the table. Raising taxes in the middle of the current economic climate could permanently cripple the American economy. Tax revenues should be increased through economic growth, not by further burdening America’s job creators and killing more jobs.

2. Keep politics out of national security. America’s national security budgets must be based on fact-based assessments of what is needed to keep Americans safe, not on arbitrary political considerations. Our enemies and competitors will not cease being aggressive while we sort out our fiscal problems. 

3. Cut spending by reforming and restructuring government. Trying to find enough savings within the framework of our current bloated, bureaucratic big government is impossible. Real, sustainable savings can only come from a fundamental overhaul of the way government works, including its arcane civil service rules. We want a smaller but also much more modern and effective government. For instance, Strong America Now, led by Michael George, believes that $500 billion per year can be saved by applying Lean Six Sigma to the federal government.

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August 1, 2011

Ron Paul Issues Statement on Debt Ceiling Deal

“This deal does nothing to solve our spending problem”

LAKE JACKSON, Texas – Today, 2012 Republican presidential candidate Ron Paul issued a statement outlining his opposition to the debt ceiling deal struck between the White House and Congress. See statement below.
 
“While it is good to see serious debate about our debt crisis, I cannot support the reported deal on raising the nation’s debt ceiling.  I have never voted to raise the debt ceiling, and I never will.
 
“This deal will reportedly cut spending by only slightly over $900 billion over 10 years.  But we will have a $1.6 trillion deficit after this year alone, meaning those meager cuts will do nothing to solve our unsustainable spending problem.  In fact, this bill will never balance the budget.  Instead, it will add untold trillions of dollars to our deficit.  This also assumes the cuts are real cuts and not the same old Washington smoke and mirrors game of spending less than originally projected so you can claim the difference as a ‘cut’.”
 
“The plan also calls for the formation of a deficit commission, which will accomplish nothing outside of providing Congress and the White House with another way to abdicate responsibility.  In my many years of public service, there have been commissions on everything from Social Security to energy policy, yet not one solution has been produced out of these commissions.
 
“By denying members the ability to offer amendments and only allowing an up-or-down vote that will take place in the hectic time between Thanksgiving and Christmas, this Commission essentially disenfranchises the vast majority of members from meaningfully participating in the debate over reducing spending and balancing the budget. Furthermore, despite the claims of the bill's proponents, there is nothing to stop the commission from recommending tax increases.
 
“One of the reasons why I humbly suggest that I am the most qualified Presidential candidate is my experience to see and understand the long track record of failure, disappointments, and bad recommendations made by such commissions.  Times like these require statesmanship and steady leadership, which I and the grassroots activists who have joined my campaign believe I am uniquely qualified to provide.
 
“What should bother Americans most is that under cover of this debt ceiling circus, we learned from a recent GAO one-time, limited audit that the Federal Reserve secretly pumped $16 trillion into American and foreign banks over three years.  All of the Fed's fat cat cronies were taken care of at the expense of the American public.
 
“To put that into perspective, our entire national debt is $14.5 trillion, and our annual deficit will be about $1.6 trillion, meaning the Federal Reserve created and appropriated more than our entire national debt to banks around the world in a few short years.  We have been fighting in Congress these past few weeks over raising our debt ceiling by $2 trillion, an amount the Fed secretly gave away to just one big bank.
 
“For decades, politicians have promised future restraint in exchange for hikes in the debt limit.  We are always told that we must act immediately to avoid a crisis.  But time and time again, politicians reveal themselves to be untrustworthy, and we soon find ourselves in a crisis being led by the same folks who wish only to maintain the status quo.
 
“I believe in the great American traditions of free markets, sound money, and personal Liberty.  But we are moving far away from what made us the greatest nation in human history. We must cut spending and balance our budget now, before it is too late.
 
“Let me be clear.  The cuts we must make will not be easy, and there will be difficult times in the short run.  But I have the greatest confidence that if we come together as a People, work hard, and do the right things, our country will be back on track in no time and on its way to unprecedented prosperity.  But, if we continue to print money and pyramid debt, we will destroy ourselves and lose the promise of America forever.
 
“These difficult times require a President willing to stand against runaway spending.  If elected, I will veto any spending bill that contributes to an unbalanced budget, and I will balance the budget in the first year of my term.  I will not allow the Federal Reserve to destroy the value of our money by shoveling dollars into the pockets of its banker friends.
 
“I remain committed to working on behalf of the American people to drastically reduce spending and implement fundamental changes that will reform government and restore our nation’s prosperity.”

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For Immediate Release:
Monday, August 1, 2011

For More Information:
Ellen Carmichael

Cain Responds to Debt Ceiling Increase

(Stockbridge, GA)- Republican presidential candidate Herman Cain responded to today's debt ceiling vote, saying:

The American people are not so easily fooled. They have seen the president as a man who has clung to bitter partisanship instead of earnest cooperation and whose speechifying has replaced mature leadership. This failure to lead has further impaired the financial markets and, as one source put it, 'chipped away at the global authority of President Obama.'

Despite knowledge of this deadline for more than a year, the Obama Administration continued to blow taxpayer money like spending addicts, focusing their attention on Obamacare, bailouts and stimulus packages, all of which have not produced the type of results the American people need and deserve. Instead of cutting up the nation's credit card and supporting programs to stimulate private sector growth through encouraging production and trade and relaxing regulations, the President and his Democratic colleagues are simply asking for a credit line increase. And they wonder why we're broke?

While both parties can claim some political victory in this compromise, the American people got short-changed. The debt ceiling will be raised, opening the door for further debt ceiling and tax increases with no sign of treatment for the addiction to spending in Washington.

I would like to congratulate the concerned Americans who through their unified voice were able to prevent tax hikes from being passed, despite the Obama Administration and Congressional Democrats' wishes. The consideration of a balanced budget amendment to the U.S. Constitution is also a step in the right direction to restoring fiscal sanity to government.

Unfortunately, as we have seen with the handling of the 'debt ceiling crisis,' America is on the wrong track with this leadership.

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August 1, 2011

Statement Regarding the Budget Control Act of 2011

Washington, D.C. – U.S. Rep. Thaddeus G. McCotter made the following statement: "Upon receiving the initial framework of the Budget Control Act of 2011, I was concerned about the potentials for tax increases and military cuts during the 'super committee' and prospective sequestration processes.

"After publicly raising these issues in the narrow window afforded before the vote, I then brought to and discussed with Speaker Boehner my concerns, which he shared and addressed.

"Therefore, I voted for the bill, which constitutes an imperfect but imperative first step toward restoring fiscal integrity to a federal government that spends too much, takes too much, and owes too much." 

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August 2, 2011

For Immediate Release 

Contact: Matt Beynon

Santorum Statement on Debt Ceiling Agreement

Des Moines, IA - Former Senator Rick Santorum (R-PA) made the following statement regarding the agreement reached by Congressional Democrats and Republicans and the White House to raise the debt ceiling:
 
"I commend Speaker Boehner, Leader McConnell, and the conservative leadership for moving the ball in the right direction," said Senator Santorum. "Unfortunately, this deal does not go far enough and it is not one that would have been made by a Santorum Administration because it does not accomplish the necessary goal of balancing the budget. It is also disappointing that those members of congress who want to be our president were not leaders in the legislature to advance the conservative cause. As president, I will be committed to passing a Balanced Budget Amendment to once and for all ensure we never again put our nation's fiscal health in jeopardy."

To learn more about former Senator Rick Santorum, please visit www.RickSantorum.com.

                                               

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Statement from Pawlenty for President Press Secretary Alex Conant:

“This deal is nothing to celebrate. Only in Washington would the political class think it’s a victory when the government narrowly avoids default, agrees to go further into debt, and does little to reform a spending system that cannot be sustained by our children and grandchildren. While no further evidence was needed, this entire debt ceiling fiasco demonstrates that President Obama must be replaced.”

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For Immediate Release
July 31, 2011

Contact: DNC Press

DNC Chair Debbie Wasserman Schultz's Statement on Debt Deal

Washington, DC - After President Obama's announcement that he and Congressional leaders have arrived at a compromise to raise the debt ceiling and make spending cuts, averting a financial crisis that would have resulted in the United States defaulting on its debt for the first time in history, DNC Chair Debbie Wasserman Schultz issued the following statement:

"Today's announcement of a compromise is welcome news.  I want to thank President Obama for his tireless leadership on this issue and for his unfailing commitment to do what is right for the country.  President Obama and Democratic leaders understood that not raising the debt limit would be absolutely irresponsible, and have been committed from day one to a compromise to lift the cloud of uncertainty facing our country and our economy.

"The President and Democrats' primary focus has been to ensure that we meet our obligations and avoid default while beginning to get our fiscal house in order.  This deal accomplishes that.  It puts in place a framework for long-term fiscal discipline and it makes a down payment on deficit reduction. The agreement sets the stage for a balanced package that includes revenues.

"But we're not over the hurdle yet.  I urge my colleagues on both sides of the aisle to support this compromise and renew their commitment to working to together in a bipartisan fashion to move our country forward." 

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August 2, 2011
 
WASHINGTON – Republican National Committee (RNC) Chairman Reince Priebus issued the following statement today following the passage of the debt limit deal:
 
“While not perfect, this law is a welcome sign that Washington is beginning to move in the right direction to get spending under control and our economy back on track. Obama was dragged kicking and screaming to the negotiating table as Republicans once again changed the conversation away from his agenda of higher taxes and more spending.  This is just another example of Republicans filling the leadership void to get our country on sound financial footing and create an environment where job creators can start hiring again. On issue after issue, President Obama has been passing the buck instead of leading – reminding us why elections matter and how important it is for Republicans to take back the White House and the Senate in 2012.”