Toomey Act Gets Support, But is Tabled
Today, the Senate voted on the Full Faith and Credit Act, introduced as an amendment to the Patent Reform Act by Senators Pat Toomey (R-Pa.) and David Vitter (R-La.). The vote to table the amendment was 52-47.
The Full Faith and Credit Act would ensure that the U.S. government would not default on its debt under any circumstances. The legislation would allow Congress to engage in a level-headed debate about the best way to cut spending and institute structural spending reforms as part of the larger discussion surrounding raising the debt ceiling.
Taking the possibility of default off the table will also protect the millions of Americans who hold U.S. securities as part of their 401(k) plans, pension plans, and retirement savings and keep consumer and small business borrowing costs at stable levels. In addition, the amendment would prioritize Social Security payments to help ensure American seniors are protected in case the debt ceiling is not immediately raised.
“I am encouraged by the significant support the Full Faith and Credit Act has received from my colleagues,” Sen. Toomey said. “The fact is we have a burden of debt that is costing us jobs and economic growth in this country today. We don’t have the luxury of simply kicking the can down the road and continuing with borrowing and spending as usual. The Full Faith and Credit Act allows us to have a serious debate about how to put our country on a sound fiscal trajectory without risking default or putting Social Security payments at risk. I am disappointed that my colleagues across the aisle are putting politics ahead of our country’s fiscal health and our senior citizens.
“We’re working to clear the way for a serious debate about unsustainable federal spending as Congress considers raising the debt limit,” Sen. Vitter said. “The Full Faith and Credit Act would defuse the administration’s sky-is-falling rhetoric by spelling out the Treasury secretary’s responsibility to prioritize debt payments if Congress doesn’t raise the debt ceiling. This is absolutely a pressing issue that we need to address immediately, and I’m disappointed that more of our colleagues did not recognize this.”
The Full Faith and Credit Act would ensure that the U.S. government would not default on its debt under any circumstances. The legislation would allow Congress to engage in a level-headed debate about the best way to cut spending and institute structural spending reforms as part of the larger discussion surrounding raising the debt ceiling.
Taking the possibility of default off the table will also protect the millions of Americans who hold U.S. securities as part of their 401(k) plans, pension plans, and retirement savings and keep consumer and small business borrowing costs at stable levels. In addition, the amendment would prioritize Social Security payments to help ensure American seniors are protected in case the debt ceiling is not immediately raised.
“I am encouraged by the significant support the Full Faith and Credit Act has received from my colleagues,” Sen. Toomey said. “The fact is we have a burden of debt that is costing us jobs and economic growth in this country today. We don’t have the luxury of simply kicking the can down the road and continuing with borrowing and spending as usual. The Full Faith and Credit Act allows us to have a serious debate about how to put our country on a sound fiscal trajectory without risking default or putting Social Security payments at risk. I am disappointed that my colleagues across the aisle are putting politics ahead of our country’s fiscal health and our senior citizens.
“We’re working to clear the way for a serious debate about unsustainable federal spending as Congress considers raising the debt limit,” Sen. Vitter said. “The Full Faith and Credit Act would defuse the administration’s sky-is-falling rhetoric by spelling out the Treasury secretary’s responsibility to prioritize debt payments if Congress doesn’t raise the debt ceiling. This is absolutely a pressing issue that we need to address immediately, and I’m disappointed that more of our colleagues did not recognize this.”
.jpg)
Comments