Capps Statement on Boehner Default Plan

Senate Majority Leader Harry Reid (NV) has indicated that the proposal cannot pass the Senate, and President Obama has indicted that he will not sign a six month debt ceiling bill, due to the continued uncertainty it would cause the markets. Senator Harry Reid’s proposal would lift the debt ceiling through 2012, and like the Boehner plan, would cut spending by an amount equal to the debt ceiling increase.

“Congress needs to come together on a common sense compromise that avoids default and puts in place a balanced plan to address our deficit that doesn’t just ask for sacrifice from seniors and the most vulnerable in our society. Failure to avoid default could bring about economic catastrophe, wreaking havoc on families and small businesses across the Central Coast who would face higher interest rates on everything from credit cards to mortgages to small business loans. And default could slow down or stop benefits for Social Security recipients, veterans and the disabled, among other vital government services. Default is simply not an option.

“I voted against the partisan Boehner plan finally put before the House today because it would have continued the uncertainty facing our country brought on by the current default crisis by dragging on the issue for at least another six months. We simply cannot allow that uncertainty to continue to hang over our struggling economy, and hard working families and small business owners, for the rest of this year. If people of good intentions are willing to compromise for the good of the country, there is simply no reason for this country to default on its debt. Indeed, avoiding default by increasing the debt ceiling was done 17 times during President Ronald Reagan’s administration and 7 times under George W. Bush. We need to come together and pass a sensible, balanced approach that is worthy of the American people.”