Republicans block debt deal, threaten US credit rating again
House Majority Leader John Boehner is once again demonstrating the best reason to turn control of the House over to Democrats in 2012. By refusing to work with Democrats on a debt deal, Boehner and the GOP are once again putting the US credit rating on the line.
At a press conference on Tuesday, Boehner said he was “not confident at all,” about reaching a deal with his Democratic colleagues in congress.
Boehner blamed President Obama for the failure to reach a deal.
The deal-breaker includes Republican demands to extent the Bush tax cuts for upper income Americans, which President Obama has said he will not agree to because extending the Bush tax cuts for wealthy Americans will add $4 trillion the deficit.
Last year, the Republicans took the US to the brink of default by refusing to raise the debt ceiling, which cause the first downgrade of Americas credit rating in history.
In 2011, Senate Minority Leader Mitch McConnell mislead the public into thinking that raising the debt ceiling meant borrowing more money, when in fact, the debt ceiling vote is a procedural matter that simply authorizes payment for money already spent.
McConnell admitted that threatening to put the United States into credit default was a useful political tool to discredit President Obama. But what he and congressional Republicans really did was damage the reputation of the US, and increase the deficit with higher interest payments after last year’s credit rating downgrade.
If Boehner and congressional Republicans cause the US to have another credit rating downgrade, higher interest payments will increase the federal deficit.