Wednesday, July 27, 2011

Isakson: Washington's Inability to Solve Debt Ceiling Crisis Causing Crippling Uncertainty for Businesses, Hurting Economic Growth
Criticizes President Obama For Failing to Offer Real Solutions, Rejecting Bipartisan Deficit Commission Plan Seven Months Ago

WASHINGTON – U.S. Senator Johnny Isakson, R-Ga., today reiterated the urgency of solving the nation's debt crisis and reining in federal spending as Congress faces an August 2 deadline to decide whether to raise the "debt ceiling" and grant the federal government more borrowing authority above the current limit of $14.3 trillion. Isakson asserted that the inability of the President and Congress to reach a deal on the debt ceiling debate is causing crippling uncertainty for businesses and slowing economic recovery.

Isakson also criticized President Obama for failing to offer a real solution during the debt ceiling debate and for rejecting the recommendations of his own bipartisan deficit commission that were released in December 2010. The commission's plan, also known as the "Simpson-Bowles proposal," would have instituted a disciplined process to cut nearly $4 trillion over the next decade. Isakson, who backed the initial creation of the commission in the Senate, argued that the current debt crisis could have been averted if the President had not rejected it out of hand.

"The uncertainty that Congress and this Administration is causing in terms of our inability to solve the debt crisis is beginning to impact businesses, investments and our country's economy. Dillydallying around, putting off a final decision and agreeing not to agree on anything, is making things worse. Economic activity is slowing down because Congress and the President cannot get their act together," said Isakson. "I ran a company for 22 years, and I know the worst thing when running a business is to have uncertainty. It is my sincere hope that everybody will come together and realize 'no' is not an option. If the President has a plan, bring it. If the House passes their plan, let us vote for it in the Senate. Let's move forward because the price of uncertainty is too high."

Isakson is an original co-sponsor of the Senate version of "Cut, Cap and Balance" legislation, S.1340, which would cut fiscal year 2012 non-defense discretionary spending by $435 billion, set hard spending caps on future budgets and require the passage of a Balanced Budget Amendment before Congress can raise the debt limit.

Last week, Senate Majority Leader Harry Reid, D-Nev., held a procedural vote on the House version of "Cut, Cap and Balance," or H.R. 2560, to prevent the Senate from taking up the bill. The Senate voted 51-46 to table H.R. 2560, with Isakson voting "no" on killing the bill. Isakson has expressed disappointment that the Senate will not consider this legislation and believes that this legislation was the best proposal so far to resolve the debt ceiling negotiations.