Toomey Downplays Debt Limit Worries

By Philip Bunnell

Senator Pat Toomey (R-Pa.) said Wednesday that the U.S. won’t necessarily experience an economic catastrophe should Congress fail to authorize an increase in the nation’s debt limit this summer.

Speaking at the American Enterprise Institute, the Pennsylvania Republican downplayed the impacts of not raising the borrowing limit by August 2, the date by which Treasury Secretary Tim Geithner told lawmakers they must act.

“I want to say categorically that is absolutely false. Failure to raise the debt limit upon the deadline submitted by the Treasury Secretary does not equate to a default on our debt at all,” Toomey said.

On Monday, Geithner announced that the federal government had reached its $14.29 trillion limit, but said that he would maneuver to buy Congress more time to reach agreement on a vote. Lawmakers are currently at an impasse over how to procede down the road of raising the limit, with Democrats calling for a “clean” authorization and Republicans demanding that spending cuts and reforms be included.

Toomey, who introduced a bill last month that would require Treasury to solely make payments on principal debt and interest should Congress fail to pass a vote, said that like most Republicans, he would only be willing to support more borrowing if it came with strings attached. He warned that simply raising the limit year after year is not a “permanent solution.” Toomey added that no Republicans would support a bill that contained tax increases as a means of generating revenue to pay down the deficit.

Treasury officials have indicated that the current limit would need to be increased by roughly $1.9 trillion.

On spending, Toomey defended the House-passed 2012 budget plan written by Budget Committee Chairman Paul Ryan (R-Wis.), which aims to reduce the deficit by cutting trillions in spending and overhauling Medicare and Medicaid. Toomey said he’ll vote for the Ryan plan if and when it comes to the Senate floor, calling it “very, very thoughtful, serious, [and] courageous.” He added that it is “the only idea… that actually does save Medicare.”

Pence, Ryan Speak Out Against Federal Spending

By A.J. Swartwood

Rep. Mike Pence (R-Ind.) and Paul Ryan (R-Wis.) criticized the federal government and Federal Reserve Tuesday morning and called for a return to principles of sound money and fiscal responsibility. Speaking at a forum on “Sound Money and America’s Global Leadership”, the two fiscally conservative Congressman minced no words in calling out the federal government for what Ryan called “insidious” debasement of American currency.

“President Obama and Congressional Democrats have tried to borrow and spend the country back to prosperity,” Pence said. “To this runaway spending of the federal government they added a government takeover of healthcare, attempted to pass a national energy tax and passed one bailout after another.

“To restore a going economy we must end all this runaway federal spending and go back to the practice of free market economics without apology,” said the Indiana Republican.

Rep. Ryan, soon-to-be House Budget Chair, and a member of the President’s fiscal commission, declared, “there are no shortcuts, no sugar highs, that will get us to the foundations of a pro-growth society.”

He called for a return to low tax rates, transparent regulations, rule of law, controlled spending and debt and “most importantly” an application of principles of sound money as the keys to economic growth. 

Republicans, fresh off of a victorious struggle to extend all the Bush-era tax cuts, are eager to continue implementing their fiscally conservative agenda as the new Congress begins in January, according to the duo.

U.S. May Soon Resemble Greece Economically, Says House Republican

By Linn Grubbstrom
Talk Radio News Service

Rep. Paul Ryan (R-Wis.) is afraid that the U.S.'s mounting debt could match Greece's in a number of years.

"Our debt levels right now are above Spain, Ireland and Portugal," Ryan said Thursday. "That's the most important statistic. In five years, our debt level, on our current trajectory, is going to be up there with Greece and Italy," said Ryan.

One possible solution, said Ryan, would be modified the tax system.

"I would replace the current tax system with a modified flat tax. It's a boon to progressivity, meaning 10% on the first 100,000 dollars for couples 25% above that. No other tax on capital or saving. Meaning no dividends, capital gains or death tax. Those are taxes that are double taxes on capital, they retard economic growth and innovation," he said.

Ryan, the ranking Republican on the House Budget Committee, also suggested changes in health care, social security and job training programs.

GOP: Let the Patients Choose their Health Care Plan

By Courtney Ann Jackson-Talk Radio News Service

More Americans should have the opportunity for affordable health care and the choice of doctors according to GOP Leaders from the House and Senate who introduced new legislation Wednesday. The Patients’ Choice Act of 2009 would allow for universal health care managed outside of government entities.

U.S. Representative Paul Ryan (R-WI) said, “We propose to equalize the taxed treatment of health care, giving every American regardless of employment status the ability to purchase health insurance. And if you like what you’ve got, you can keep it.”

Senator Lamar Alexander (R-TN) was present at the press conference to show his support of the legislation and explained that the legislation lets “the patient makes the decision, not Washington D.C.”

The Patients’ Choice Act as laid out in a summary statement released at the press conference, would transform health care by: preventing disease and promoting healthier lifestyles, creating affordable and accessible health insurance options, and equalizing the tax treatment of health care.

The proposed plan will “empower the American people” to have access to their own doctor and their own health care coverage, according to U.S. Representative Devin Nunes (R-CA).

Senator Richard Burr also explained they are hopeful that the Act will “push Congress to enact a more sensible health care reform bill this year.”

The GOP leaders said the American’s need a health care system centered on their individual needs and that is what the Patients’ Choice Act of 2009 could do.

Budget Battle Continues

By Suzia van Swol-University of New Mexico, Talk Radio News Service
About a week after President Obama presented his budget to congress, House Republicans and Democrats continue with aggressive tactics. Republicans say the budget will leave the country with staggering debt through reckless spending.

House Minority Leader John Boehner (R-Ohio) called the budget “staggering,” adding that such widespread spending will be put at the expense of future generations of Americans. Boehner’s comments that the country has had to tighten it’s belt everywhere except in Washington echoes sentiments made by critics of the budget presented to Congress by the President.

“I think it is wrong to deal with these challenges by mortgaging the future of our children and grandchildren,” Boehner said. The proposed budget backed by Democrats “makes the economy worse and will destroy more American jobs,” will double U.S. debt over the next five years and triple economic debt in ten years, he said.

On Wednesday, Wisconsin Congressman Paul Ryan (R), who is the ranking member of the House Budget Committee, introduced a budget solution he says will curb spending, create jobs and leave the U.S. with $3.6 trillion less debt than the Democrats’ proposed budget.

Boehner does not support Democrats plan to raise energy taxes in the middle of a recession and said that it could cost every family as much as $3,100 a year in additional energy costs. “Think of the millions of American jobs that are dependent on a lot of energy use,” said Boehner. When asked if there is the possibility for a compromise, Boehner said “Oh yeah, I’m only for losing one million jobs, or I’m only willing to raise taxes on people $2,000 a family...No there is no compromise!”

In the middle of a recession, Congress cannot “throw a wet blanket on a weak economy, you’ll smother it,” Boehner said.

Toxic Asset Relief Program (TARP), allows the United States Department of the Treasury to purchase or insure up to $700 billion of "troubled" assets. “It’s just out of control,” said Boehner. No one has any idea where the money is going, how much is left, or where it went and the American people have a right to know where this money is going, stated Boehner.

Thousands of Americans lost their jobs in January; responding to questions regarding Congress making sacrifices by perhaps taking a pay cut, Boehner replied only that, “I understand.”