Sen. Mikulski Votes “No” on House Republican Bill; Says “Now is the Time to Act to Avoid Default and Downgrade”

From the office of U.S. Sen. Barbara Mikulski:

U.S. Senator Barbara A. Mikulski (D-Md.) voted against a short-term extension of the debt ceiling proposed by House Republicans saying it would put the United States back on the edge of economic disaster five to six months from now.

“A short-term extension of the debt ceiling isn’t a solution at all,” Senator Mikulski said. “It puts us right back into the same situation in a few months. It doesn’t provide any certainty to the market or to the American people.”

Senator Mikulski joined the Senate in voting down House Speaker John Boehner’s (R-Ohio) Budget Control Act, which would force America to face potential default and downgrade once again in less than a year, while simultaneously making drastic cuts to Social Security, Medicare, and Medicaid.

“This plan protects tax breaks for wealthy oil and gas companies and for corporations that send jobs overseas while balancing the budget on the backs of seniors,” Senator Mikulski said. “It is unfair and unbalanced.”

Senator Mikulski supports the solution proposed by Majority Leader Harry Reid (D-Nev.). It raises the debt ceiling through 2012, providing stability and security to America’s financial markets. The legislation would cut spending by $2.2 trillion without sacrificing the elderly, middle class or military preparedness. Senator Reid’s solution would also provide a way forward to reform entitlements and tax earmarks while avoiding default and a downgrade of America’s bond rating.

“We are running out of time. If we let the two ‘D’s’ – default and downgrade – happen, Congress should get an ‘F,’” Senator Mikulski said. “If we do not meet our obligations to pay our debts or get our credit downgraded, interest rates could go sky high. For Americans who are worried about tax increases, I’ve got to send a red alert. When interest rates go sky high because of our failure to act, it will be a tax on every American.”

Senator Mikulski’s statement in full follows:

“Now is the time to act. We are days away from reaching our debt limit. If we fail to take action, the United States will be irrevocably fractured. Instead of finding a substantive, real and achievable solution we are wasting time on legislation that has no chance of becoming law.

“I voted against the House Republican bill because it doesn’t address the threat to our economy from a default or downgrade. In fact, it increases that threat by requiring a short-term extension of the debt ceiling. This bill would leave us facing the threat of default and downgrade again in another 5 or 6 months. Economists and financial analyst have warned that a short-term extension could be just as damaging as a default and would lead to a downgrade in our credit.

“If we do not meet our obligations to pay our debts or get our credit downgraded, interest rates could go sky high. For Americans who are worried about tax increases, I’ve got to send a red alert. When interest rates go sky high because of our failure to act, it will be a tax on every American. If you have a variable rate mortgage, it will increase. If you have a student loan, the interest is going to increase. And if you have a car loan, forget it, the payments are going to be enormous.

“A short-term extension of the debt ceiling isn’t a solution at all. It puts us right back into the same situation in a few months. It doesn’t provide any certainty to the market or to the American people who are worried about how they will be affected by Congress’s failure to act.

“If threatening our credit rating wasn’t bad enough, the Budget Control Act would also result in reductions to Social Security, Medicare and Medicaid by requiring drastic cuts in spending while making it nearly impossible to raise additional revenue. This plan protects tax breaks for wealthy oil and gas companies and for corporations that send jobs overseas while balancing the budget on the backs of seniors. It is unfair and unbalanced.

“I support Senator Reid’s solution. It would extend the debt ceiling through 2012 to provide certainty and stability to our financial markets.

“It cuts spending by $2.2 trillion over ten years. These are actual cuts in domestic discretionary spending as well as defense spending without sacrificing the readiness of troops or cutting military or veterans’ health care. And it provides a path forward to reform entitlements and tax earmarks. Senator Reid solution is an achievable framework for avoiding default and avoiding a downgrade of our bond rating.

“Time is running out. We aren’t an impasse. We are at the edge of a cliff. Unless Congress acts, we are going to go over it. Let’s come together. Let’s stop being Democrats. Let’s stop being Republicans. Let’s be Americans. Let’s make the tough decisions. Let’s put politics aside, put America number one, and get us back on track.”

MIKULSKI SAYS NOW IS THE TIME TO ACT TO AVOID DEFAULT AND DOWNGRADE

In a statement delivered on the Senate floor, U.S. Senator Barbara Mikulski (D-Md.) insisted that the Senate come together to pass the Reid solution to avoid default and downgrade.

“Democrats have compromised,” Senator Mikulski said. “We have gone 80 percent of the way. Why can’t Republicans come the other 20 percent and say yes to the Reid solution.

“Last night the Senate rejected the Boehner plan because it wasn’t a solution. It would lead us over the cliff because it would not avoid default and downgrade. Mr. Boehner insisted on a short-term extension. Those who weigh our credit like Moody’s have said a short-term extension would lead to a downgrade in credit. Now, under the Boehner proposal, we would be downgraded immediately.

“The Reid solution extends the debt ceiling through 2013, which provides the certainty credit rating agencies want. It makes a significant down payment on reducing the debt, and we have a political process that I’m willing to put more teeth into to get rid of tax earmarks.

“So could we put politics aside? Could we put partisan sniping aside? Could we not come together? Democrats have made 80 percent of the compromise. We look to the Republicans to give us the other 20 percent to ensure the solvency and the security of the United States of America,” Senator Mikulski concluded.

For audio of Senator Mikulski’s remarks, visit:

http://demradio.senate.gov/actualities/mikulski/073011_MIKULSKI_1_RADIO.mp3

Video of Senator Mikulski’s statement is available at:

SD version http://gp1d.senate.gov/sdmc/Mikulski/073011_MIKULSKI_2_FTP.MPG

HD version http://gp1d.senate.gov/sdmc/Mikulski/073011_MIKULSKI_2_FTP.M2T

Senator Mikulski’s full statement as delivered on the Senate floor follows:

“I rise to speak on the Reid Amendment. First of all I’m sorry that the Senate is engaged in a filibuster. We are using parliamentary procedure in a way that only delays us taking votes.

“We are days away from default. We are days away from our bond rating being downgraded. If we fail to raise the debt limit, the United States of America will be irrevocably fractured. We cannot fail and we cannot falter. We must act and we must act tonight.

“Now, last night the Senate rejected the Boehner plan because it wasn’t a solution. It would lead us over the cliff because it would not avoid default and downgrade. If the Republicans force us into a default or a downgrade, it will be the biggest tax increase on Americans. When interest rates go sky high, it will be a tax on Americans. We know that we have to agree to additional spending cuts, but the solution has got to be long term.

“The Reid Solution has a path forward for eliminating tax earmarks and entitlement reform that does not lead to a stampede to shrink Social Security benefits or to raise the Medicare age.

“Mr. Boehner took it upon himself last week to come up with a solution. He told the President that he, Mr. Boehner, was the guy to do it. Well, he didn’t succeed. His proposal was failed leadership and failed economics because he did not meet the threat posed to our economy by default and downgrade.

“Mr. Boehner insisted that there be a vote in December to raise the debt ceiling, that the House and Senate must pass balanced budget Constitutional amendments. That’s false. You know, in America, we can guarantee a vote, but we can’t guarantee the outcome of that vote.

“Here are the facts. We will be downgraded if we don’t take action or if action is not taken seriously, so we must have serious policy, we must have a pragmatic process to reform taxes and also to reform entitlements. Those who weigh our credit like Moody’s have said a short-term extension would lead to a downgrade in credit. Now, under the Boehner proposal, we would be downgraded immediately.

“The Republicans’ refusal to say yes to the $2 trillion in spending cuts that are proposed in the Reid solution is mind boggling. We’re agreeing to $2 trillion worth of cuts. Now, as a New Deal Democrat, as a fair Democrat, I have now agreed to more cuts than I would ever do under any other circumstances.

“I have compromised. Other Democrats of my political persuasion have compromised. Where’s the compromise on the other side? We need compromise, first of all, to get a vote and then to get it done.

“I am really scared that if we go into default, interest rates will sky rocket. The President will have to set priorities about what bills are paid. Benefits will be affected.

“Today I have the Marine Corps pin on. Why did I wear a Marine Corps pin? First of all, I wore it because of their motto – Semper Fi, always faithful. How about us? Why can’t we be as good as the military we send into war? Those men and women are willing to put their life and lives on the line to fight and defend our Democracy. Why can’t we be willing to put our political careers on the line to fight and defend Democracy.

“I’m willing to make the tough choices. I have already made a tough choice to support the significant cuts in domestic spending with very few cuts in defense spending where there should be more. I wanted to get rid of sacred cows like the ethanol subsidy, like the oil and gas subsidies, those sacred cows that just milk the public trough. But we couldn’t include revenue raisers, we had to have only cuts.

“So Democrats have compromised. We have gone 80 percent of the way. Why can’t Republicans come the other 20 percent and say yes to the Reid solution. Reid extends the deadline through 2013, which provides the certainty credit rating agencies want. It makes a significant down payment on reducing the debt, and we have a political process that I’m willing to put more teeth into to get rid of tax earmarks. Make no mistake, they are tax earmarks for the pampered and the prosperous. I’m ready to reform the tax earmarks and also look at entitlement reform. I think the Reid solution is a reasonable path forward.

“So could we put politics aside? Could we put partisan sniping aside? Could we not come together? Democrats have made 80 percent of the compromise. We look to the Republicans to give us the other 20 percent to ensure the solvency and the security of the United States of America.