President Barack Obama on Tuesday signed the debt and deficit package that gives Congress more time to make the hard decisions.
Easily clearing the Senate 74-26 -- Democratic Sen. Bill Nelson voting in favor and Republican Sen. Marco Rubio voting against -- the measure raises the nation's debt ceiling above $16 trillion and calls for some $2 trillion in budget cuts.
But the spending package lacks specifics, and Obama said it will require both parties to "work together on a larger plan to cut the deficit, which is important for the long-term health of our economy."
Obama then took the occasion to renew his call for what he euphemistically calls "revenue adjustments," including higher taxes for "millionaires and billionaires."
"Since you cant close the deficit with just spending cuts, well need a balanced approach where everything is on the table," he said. "Yes, that means making some adjustments to protect health-care programs like Medicare so theyre there for future generations.
"It also means reforming our tax code so that the wealthiest Americans and biggest corporations pay their fair share.And it means getting rid of taxpayer subsidies to oil and gas companies, and tax loopholes that help billionaires pay a lower tax rate than teachers and nurses."
Though Washington was not exactly euphoric, there was a bipartisan sense of hope --at least politically, if not fiscally.
While not perfect, this law is a welcome sign that Washington is beginning to move in the right direction to get spending under control and our economy back on track," said Republican National Committee Chairman Reince Priebus.
But Priebus also took a shot at the White House, adding, "This is just another example of Republicans filling the leadership void to get our country on sound financial footing and create an environment where job creators can start hiring again."
Rubio, in a statement issued just before the vote, said the overall plan "still adds at least $7 trillion to our debt over 10 years" and leaves "98 percent of deficit reduction until after the 2012 election."
"By not addressing the biggest driver of our debt, health care spending, this plan ensures Medicares looming bankruptcy, while protecting Obamacares $2.6 trillion blank check," he said.
Nelson defended his vote to pass the package, saying, "This kind of gridlock doesn't do anything to help our economy." It was the seventh time Nelson voted for an increase in the debt limit, which he has also opposed four times.
Two of Nelson's Republican opponents quickly jumped on the two-term senator up for re-election next year.
"Today, Senator Bill Nelson voted for the largest debt increase in American history, further jeopardizing the fiscal stability of our children and grandchildren," said George LeMieux.
"After nearly four decades in politics, it should surprise no one that Bill Nelson has joined with Washingtons politics-as-usual crowd to do what's easy instead of what's necessary."
LeMieux, who served an interim 16-month appointment to the Senate in 2009-2010, said he"voted against raising the debt ceiling every time."
Adam Hasner's spokesman, Douglass Mayer, said, It comes as no surprise that Sen. Nelson voted to increase the debt ceiling. From day one he has supported every major Obama administration initiative. If it raises the debt or increases taxes and President Obama supports it, you can be sure that Sen. Nelson does too.
The Heartland Institute, a Chicago-based conservative think tank, said, The debt-ceiling debate was really about positioning the two parties for the 2012 elections. The outcome -- $2.4 trillion in additional national borrowing makes the choice clear: more taxes and debt, or unimaginably more taxes and debt.
This short-term crisis was never going to result in long-term reform. It will take at least one more election to accomplish that -- or destroy the economy entirely," said S.T. Karnick, Heartland's director of research.
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Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 559-4719.
