The New Democrat Online

Thursday, July 28, 2011

Rep. Chris Van Hollen on Andrea Mitchell Reports: Need for a long term Debt Deal



If they are talking about reaching an agreement on extending the Debt Ceiling for a week to work out the last remaining details on a final Debt and Debt Ceiling Deal. Then I think that would be fine and would certainly be better then a default, especially with current State of the Economy, with very little Economic and Job Growth, with Stock Market falling and the size of our debt and deficit. This would buy time for the House, Senate and White House to work out the Final Agreement on a long term Debt Ceiling extension, as well as a Debt and Deficit Reduction Package that the country needs to avoid default in the future. But what Speaker Boehner is proposing to pass a Short Term Debt Ceiling extension that Congress and the White House will have to deal with again in October. Is a waste of time, for one the Democratic Senate will never pass it. Leader Reid has already said that if the House passes the Boehner Plan, he'll kill it in the Senate with all 53 Democratic Senators. Also it would be bad for the markets and investors, because they'll know the possibility of the United States defaulting in October would be real, just like its real now. And they'll be asking themselves do they want to invest in a country that could default in a couple of months and where the currency could lose value. What Congress and the White House should do instead is work out a final Debt Ceiling agreement that gets our debt and deficit under control and extends it by eighteen months. By raising the revenue dollar for dollar that would have to borrow to extend the Debt Ceiling. With a balance approach, Budget Cuts, Government Reform, Entitlement Reform that doesn't hurt anyone that needs these programs. And raising revenue through Tax Hikes on the wealthy and closing Tax Loopholes that cost too much, 100B$ a year alone in that. This would mean that the House GOP would get basically everything they want even though they only control 1/3 of the decision making progress here. Which includes the White House, House and Senate, with republicans controlling the House. But since they don't have all the power and only 1/3 of it, they'll have to give up something as well. Tax Loopholes for the wealthy or Tax Hikes on the wealthy.

When your negotiating with someone and your able to get 75-90 or more then what your asking. Good negotiators will take that deal and run with it. Republicans have already won the argument on the importance of Debt and Deficit Reduction, they should declare victory and give up that 10-25% . Even though I'm a Liberal Democrat I'm going to quote Ronald Reagan, President Reagan said that when he was negotiating with Congress. And he could get 75% or more of what he was looking for, he would take that and come back to fight another day to get teh rest of what he's looking for. Instead of being stuck at the alter wearing a tuxedo with no one to marry. I added the last part but you get the idea, Speaker Boehner should take President Reagan's advice and declare victory with 75% of what he's looking for.