Washington, DC -- Congressman Eliot Engel (D-NY-17) voted against the debt “compromise” bill today, saying it accomplished little more than putting more of a burden on the backs of the middle class.  Rep. Engel has called for a vote on the debt ceiling without preconditions, something which has been done scores of times previously, and having a budgetary discussion separate from this necessary procedural move.  As it became clear the Tea Party dominated House Majority was refusing, Rep. Engel urged President Obama to invoke the 14^th Amendment to the U.S. Constitution and raise the debt ceiling to prevent the first-ever default on our debts.  To view his comments from the House floor - http://www.youtube.com/watch?v=K24PkXmRjY0

“The Tea Party wing of the Republican Majority has refused to understand the dangers of default, and that has led us to a situation where the President and Senate Majority Leader Harry Reid have been negotiating with a brick wall.  Their reckless stand has taken us to the brink.  There was no reason for this crisis, and yet here we stand mere hours from a moment where the U.S. would run out of cash.  It is unfathomable that we have gotten here, and no wonder the American people are disgusted with their government.

“I voted for a debt ceiling increase without preconditions, and would do so again.  If we must have a debt reduction deal attached to the increase than I urge a more balanced agreement, because this one is far from balanced.  If we must pass a short extension, so be it.  I still believe that President Obama should invoke the 14^th Amendment to raise the debt ceiling, freeing us from the specter of default, and allowing for a more balanced discussion of debt reduction.  However, it seems neither of those options appears to be on the table.  I ask whatever happened to fairness?  Why must necessary reforms be placed squarely on the backs of the middle class and lower-income families?

“So, I must vote no on this plan because the damage it would do to our recovery and our social safety net is simply too steep.  I cannot buy a pig in a poke.  Democrats would like to have a conversation on how to fix programs such as Medicare, Medicaid and Social Security, but the Tea Party Republicans just want to destroy them.  Putting Medicare cuts on the table as a trigger for the Super Committee to decide budget cuts is a terrible precedent to set.  The next time they try this trick, they know we were willing to sell out Medicare.   I agree that something must be done about our debt, but it cannot be done with just spending cuts.  There must be revenue as part of any plan, the closing of tax loopholes at the bare minimum.  For me, it is impossible to consider deep budgetary cuts while millionaires and billionaires, along with Big Oil, walk away free by keeping their lucrative tax breaks.  Letting the Bush Tax Cuts for the wealthiest Americans expire at the end of 2012 is a must should this deal be signed into law.

“Especially damaging to New York’s economy are the cuts threatened as part of that Medicare trigger to Graduate Medical Education (GME).   GME funding for teaching hospitals and essential Medicaid services is vital to our state, and just the possibility of cuts is too great of a risk to take.  New York’s hospitals generate nearly $108 billion for state and local economies annually, and support more than 686,000 jobs through direct and indirect employment.  Cuts to GME funding would not only force New York’s teaching hospitals to cut back on training doctors, but also reduce services to patients and lay-off personnel.  With a nationwide physician shortage, expected to reach 130,000 physicians by 2025, hindering teaching hospitals’ ability to train new doctors is counterproductive.  How can we put jobs and our citizens’ health at risk while maintaining tax breaks for companies such as BP?  How can cuts to hospitals and nursing homes through Medicare not affect beneficiaries due to reduction in quality of care?  Even the 9-11 Health Zadroga Bill is not immune to potential cuts – how can we justify denying health care to our suffering first responders while our richest citizens enjoy historically low tax rates?

“Our recovery is too fragile to risk sending it back into a double dip recession.  Many economists believe that deep budget cuts are bad for the economy, and that the federal government needs to spend to stimulate recovery.  This is the difference between the federal government and the states.  We were designed this way for a reason.  A balanced budget is nice in concept, and important for families to achieve, but it is improper for the federal government.  It leads to situations where disaster victims were told they must find an offset before the National Guard and FEMA are able to help them recover after their town was destroyed.

“This is what has been forgotten in this debate.  Our society was based on a sense of humanity and helping people.  We rose as a nation declaring freedom from tyranny, as the first modern day democracy.   Our republic is supposed to be about our people, and this deal is about ideology and dogma.  With their Holy Grail of cutting Medicaid at their fingertips, does anyone expect them to negotiate in the Super Committee?  This is a recipe for gridlock.  As we have seen from the Dodd/Frank financial regulation law, they will do all they can to sabotage it.  When all that stands between them and their almost-50 year quest to decimate Medicare is a few outdated defense programs, they will take it.

“I appreciate the efforts from the President, Sen. Reid and Democratic leaders.  It is almost impossible negotiating with reason against the unreasonable.  However, the product is subpar and something I cannot support solely to raise the debt ceiling.  Our government should be more responsible than this, and I call on my colleagues to never again treat our economy as a piece on the chessboard.  Too many lives and the well-being of our country are at stake to be so reckless.”

###