Washington – “The year 2011 has seen U.S. political leaders begin a consequential debate about America’s fiscal future. Building on the work of the Bowles-Simpson deficit reduction commission, leaders from both parties – in both the Senate and House – and the President are discussing reforms and proposals to curb spending and bring the U.S. budget into balance.
“We at Business Roundtable are particularly encouraged by the ideas of Representative Paul Ryan (R-Wis.), the letter signed by 64 Senators who are pushing for a broadened discussion on deficit reduction, the efforts and anticipated proposal from the Senate ‘Gang of 6’ and the President’s acknowledgment of the need for cuts beyond what he proposed in his initial FY ‘12 budget. Many tough choices are required, and they will be politically difficult for our elected officials. However, we urge all parties to not rest until a national agreement is reached that puts America back on the path of fiscal responsibility.
“Meanwhile, as a focus will be on getting our fiscal house in order, action will be required to increase our debt limit so that America can continue to uphold its debt obligations around the world. These debt obligations represent past spending decisions and thus are a national responsibility. Failure to act might raise borrowing costs sharply for all Americans far into the future.
“Business Roundtable believes a debt limit increase is simply unavoidable and necessary to protect the long-term health of our economy and ensure America’s international credibility.
“Timely congressional action on the debt limit, together with the commitment to address our fiscal challenges, will provide certainty to the financial markets, reassure global investors and avoid the risk of adverse impacts that could harm our recovering economy,” said Business Roundtable President John Engler.