*President's 2012 Budget

From the Democratic Whip Press Shop:

Yes, we know you’re tired of us quoting him, but Mark Zandi’s comments on the debt limit are definitely worth the read.  Here’s a highlight:

If the United States fails to pay the bills it has incurred, it ‘would be a financial disaster not only for our country, but for the world economy.’ Those are the words of Speaker Boehner in January...

"In recent days, we have seen starkly contrasting budget plans. The plans put forward by President Obama and House Democrats are balanced approaches to getting our country out of debt while protecting investments in job creation and the future of our economy. But the Republican plan has a higher priority than balancing the budget or investing in our future or looking out for working families—its highest priority is cutting taxes even further for the wealthiest Americans...

We had a good meeting in the White House yesterday. I think a good, frank discussion. I think the President’s speech laid out essentially what the Commission that he appointed, which was headed by former Chief of Staff Bowles and former Senator Alan Simpson, which said yes, we need to bring spending down. I think that’s generally agreed upon. We’ve got to rein in deficit and debt, it’s dangerous to our economy, our people and our competitiveness internationally. What the President indicated yesterday was yes, we’ve got it bring it down. We’re going to cut spending by about two-thirds of that $4 trillion he wants to cut over the next 12 years and rely on revenues, that is paying for what we buy, for the other third, which is essentially the formula that the Commission set forward. David Stockman in referring to the alternative Ryan budget made it very clear that he thought that was not a reasonable alternative. And that in fact, we had to rely to a much greater degree than the Republicans, who say absolutely no, on revenues.

Well, I thought the President's speech was an excellent speech and what he essentially outlined was the vision that he sees going forward. First of all, he recognized that the deficit is a critical problem we must confront but we must confront it according to the President, and I agree with him, within the framework of the values that we hold dear in this country. And that is, as your previous discussion indicated, making sure that we take care of one another. He did contrast his vision with that of the Republican budget offered by Mr. Ryan, the Budget Chairman in the House, a vision which gets to the same objective of cutting $4 trillion in spending and getting toward balanced budgets but also indicated it should not be in the context of doing away with Medicare as we know it, substantially putting those on Medicaid at great risk by eliminating its guarantees, by cutting such programs as Head Start and other early education and investment in the education of our children so we will be competitive internationally; and at the same time, giving $1 trillion worth of tax cuts to the wealthiest in Americaa.

Today, President Obama outlined a fiscally-responsible plan that would reduce our deficit by $4 trillion over the next 12 years. It subjects our entire budget, including defense spending, to the scrutiny we need to find savings. And it calls for a fairer, simpler tax code that would mean lower rates for businesses and families.

On the CR, I'm still looking at it and our members are still looking at it, but clearly we want to keep the government running. Clearly we needed to reach compromise, and I think the President and Mr. Reid tried to reach the best compromise that was possible.

 I'm pleased President Obama will be giving a speech this week to lay out a path of action to seriously address our nation's deficit. I strongly believe that reducing the deficit is critical to ensuring the long-term strength of our economy. Entitlement reform must be part of that effort, to ensure that Social Security, Medicare, and Medicaid are protected for seniors and working families, as well as strong for generations to come. This can only be done in a bipartisan way, and I hope Republicans work with us and put all options on the table. I support President Obama's focus on this issue, and stand ready to work with him.