Thursday, November 3, 2005

BLUE DOGS: RECONCILATION IS A SHAM

Reality: the Republican reconciliation plan completely fails by any standard to reduce the deficit, fix the broken budget process, or reduce our dependence on foreign governments and financial institutions to finance our reckless spending.  To make matters worse - the U.S. national debt recently broke the $8 trillion barrier.  Yet, Republicans in Washington are advocating for a plan that drives our nation even deeper in debt. 

“Most Americans hear the word ‘reconciliation’ and think that this means ‘cooperation’ and ‘compromise.’  The reality is that ‘reconciliation’ is a thin disguise for partisan warfare,” said Rep.  Jim Cooper (TN), Blue Dog Co-Chair for Policy.  “Many Americans also believe that reconciliation is supposed to lead to a balanced budget.  But again, the reality is far different.  The Republican reconciliation package actually INCREASES the federal deficit by at least $16 billion.”

The current plan moving through Congress includes $54 billion in spending cuts and $70 billion in tax cuts, therefore reconciliation actually worsens the deficit.  Additionally, reconciliation makes no mention of how to pay for the president’s bird flu initiative ($7.1 billion) or the reconstruction efforts along the Gulf Coast (approximately $200 billion). 

The Blue Dogs have long expressed tremendous concern over mounting U.S. debt and are particularly troubled by our growing dependence on foreign governments to finance our debt.  Earlier this year, the Coalition offered a 12 Step Plan to cure our nation’s addiction to deficit spending.  The Blue Dog plan required, among other things, that all federal agencies pass clean audits, a balanced budget, and the establishment of a rainy day fund to be used in the event of a natural disaster.

“The Republican-driven reconciliation plan is a misleading and ineffective attempt to promote fiscal responsibility, something most Republicans haven't been serious about in the last five years," said Blue Dog Rep. Allen Boyd (FL).  "It is painfully obvious that our budget process is broken, and until this Administration and the Republican-controlled Congress enact budgetary guidelines, such as the common-sense reforms proposed by the Blue Dogs, I’m afraid our country's financial situation will only get worse.”

“Republicans in Washington have created a credit card Congress that relies on borrowing billions from foreign nations like China and Japan.  In fact, President Bush has now borrowed more money from foreign nations than the previous 42 U.S. presidents combined,” said Rep. Dennis Cardoza, Blue Dog Co-Chair for Communications.  “We owe it to our children and grandchildren to do better."

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