Letter to the Members of the U.S. House of Representatives supporting H.R. 325

TO THE MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES:

The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, supports H.R. 325, which would temporarily raise the debt ceiling for three months to facilitate a broader debate about spending, the federal debt, deficits, and entitlements.

A short-term increase is the only clear choice for the House to ensure that the President and Congress address real, meaningful spending cuts. However, the United States will not achieve meaningful deficit reduction until entitlement reform is tackled. A long-term increase in the debt limit that is not preceded by meaningful reductions in government spending might avert a default, but it would result in a downgrade of the nation’s credit-rating.

Rating agencies have been clear that containment of entitlement spending is key to American long-term fiscal sustainability. Further, tackling the structural changes to entitlements is the only way to effectively address the rising U.S. public debt burden in a manner consistent with a ‘AAA’ rating and with ‘AAA’ rated sovereign peers. Absent needed structural reforms, financial markets will react negatively, the country risks another downgrade, and the business community and American citizens face continued economic uncertainty. It is crucial that both the President and Congress take the long-term fiscal health of the country into account when they deal with the debt ceiling issue in the very near term.

The Chamber believes that a short term increase in the debt ceiling would avert default and provide time for Congress and the Administration to address fundamental spending cuts and much needed structural reforms. The Chamber supports H.R. 325.

Sincerely,
R. Bruce Josten