Lawmakers Want To Abolish Debt Ceiling
Wednesday, September 14, 2011 at 12:09PMBy Janie Amaya
Reps. Jim Moran (D-Va.) and Hank Johnson (D-Ga.) today introduced The Full Faith and Credit Act of 2011, aimed at eliminating the federal debt ceiling.
Earlier this summer, the government came close to shutting down when lawmakers nearly missed a deadline to raise the debt limit from its then-$14.3 trillion level. President Obama and Senate Democrats reached an agreement with House Republicans at the last minute to reduce the deficit and assign a committee of twelve to make further recommendations aimed at cutting the budget.
At a news conference on Capitol Hill, Moran noted how the nation survived being on the brink of a self-inflicted economic catastrophe and argued that eliminating the debt limit would prevent lawmakers from using it for political leverage.
Moran called it an “unnecessary and a counter productive legislative hurdle that has proven to be a both an ineffective means to controlling deficits and a danger to this country’s standing in the financial markets.”
According to the lawmakers, among other democratic nations, only Denmark has a debt ceiling and that alone should send a strong message about financial debt ceilings.
“You would think that what the rest of the world has figured out may mean something to the United States,” Moran said.
With an urgent tone, Johnson expressed the need to pass the the bill along with President Obama’s proposed America Jobs Act to improve the nation’s economy. He referred to the debt ceiling as a barrier that was put in place for political reasons, and called for its removal.
A similar bill was unveiled back in January by conservative Rep. Tom McClintock (R-Calif.), though that legislation was not intended to do away with the debt limit, according to an aide to McClintock.
Later today, the GOP-led House is expected to vote for a resolution expressing disapproval over raising the debt ceiling by $500 billion.
*This story was updated at 1:25 pm to reflect the difference between Moran and McClintock’s bills, and again at 2:07 pm.