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Multi-Industry Coalition Letter on Boehner Debt Ceiling Legislation

Wednesday, July 27, 2011 - 8:00pm

Dear Members of the House of Representatives:

The undersigned associations, which represent a broad swath of the business community and whose members employ millions of Americans, respectfully urge you to raise the federal debt limit. We urge you to vote for the amendment in the nature of a substitute to S.627, The Budget Control Act of 2011.

Failure to increase the statutory debt limit in a timely fashion could have significant and long-lasting negative impact on the U.S. economy. Raising the statutory debt limit is critical to ensuring global investors’ confidence in the creditworthiness of the United States. Tough calls on U.S. spending must be made as part of a debate about the budget and we agree that restoring balance to our fiscal position will require that the government spend less and spend more wisely.

This legislation is necessary to extend the debt limit and avoid a default on the obligations of the United States. It would extend the current debt limit in two phases: the first phase would provide for $917 billion in discretionary spending cuts and an immediate increase of $900 billion in the debt limit. The bill would allow for a subsequent increase of $1.6 trillion in the debt limit once Congress passes legislation to reduce the deficit by an additional $1.8 trillion. The second stage of spending reduction would be formulated by a bi-partisan Congressional committee and be voted on by the Congress in an “up or down” vote. The bill additionally would require a vote on a balanced budget amendment by the end of the year.

A default on the obligations of the United States would result in immediately higher interest rates, a likely decline in the dollar, a drop in the stock markets, potentially higher oil prices and a loss of economic growth and jobs. Longer-term, a default would likely result in a downgrade of U.S. debt instruments resulting in higher interest costs, which will add to the cost of financing our nation’s debt.

The nation is now risking unthinkable default. While no legislation is perfect, the current proposal cuts spending immediately by more than the extension of the debt ceiling, provides an enforceable mechanism to produce additional spending reductions with extensions of the debt limit predicated on these cuts, and allows for a vote on significant procedural change to our budgeting process.

In making this recommendation, we remain extremely concerned about the level of the federal debt and large annual budget deficits and remain committed to working with you and the Administration to address our Nation's fiscal challenges. We urge you to vote for this important legislation.

Sincerely,

ABC Mid-Tennessee Chapter
Aluminum Association of America
American Coatings Association
American Council of Engineering Companies
American Fork Chamber
American Insurance Association
American Iron and Steel Institute
American Lighting Association
American Meat Institute
American Rental Association
American Supply Association
Associated Oregon Industries
Ardmore Chamber of Commerce
Arkansas State Chamber/Associated Industries of Arkansas
Associated Equipment Distributors
Associated General Contractors of America
Associated General Contractors – Maine Chapter
Association of Equipment Manufacturers
Association of Washington Business
Blackstone Valley Chamber of Commerce
Brick Industry Association
Buckeye Valley Chamber of Commerce
Business Council of New York State
Business Roundtable
California Chamber of Commerce
Carol Stream Chamber of Commerce
Charleston Metro Chamber of Commerce
Cincinnati Chamber of Commerce
Concordia Chamber of Commerce
Carson City Chamber of Commerce
Dakota County Regional Chamber of Commerce
DC Chamber of Commerce
Delaware State Chamber of Commerce
Draper Area Chamber of Commerce
Fairfield Chamber of Commerce
Fentress County Chamber of Commerce
Financial Services Roundtable
Granbury Texas Chamber of Commerce
Greater Albuquerque Chamber of Commerce
Greater Carlisle Area Chamber of Commerce
Greater Des Moines Partnership
Greater Irving – Las Colinas Chamber of Commerce
Greater Raleigh Chamber of Commerce
Greater Shreveport Chamber of Commerce
Greater Woodland Park Chamber
Haysville, Kansas Chamber of Commerce
Huron County Chamber of Commerce
INDA, the Association of the Nonwoven Fabrics Industry
Indiana Chamber of Commerce
International Franchise Association
Johnson City/Jonesborough/Washington City Tennessee Chamber of Commerce
Joliet Region Chamber of Commerce and Industry
Lakeville Area Chamber of Commerce
Las Vegas Green Chamber of Commerce
Longview Chamber of Commerce & CVB
Los Angeles Area Chamber of Commerce
Lynchburg (VA) Regional Chamber of Commerce
Manhattan Chamber of Commerce
Marine Retailers Association of America
Maryland Chamber of Commerce
Metals Service Center Institute
MetroWest Chamber of Commerce
Michigan Chamber of Commerce
Minnesota Chamber of Commerce
Missouri Chamber of Commerce & Industry
Missouri Retailers Association
Mobile (Al) Area Chamber of Commerce
Monona Chamber of Commerce
Monrovia Chamber of Commerce
Motor & Equipment Manufacturers Association
National Association of Home Builders
National Association of Manufacturers
National Association of Wholesaler-Distributors
National Beer Wholesalers Association, Inc.
National Council of Chain Restaurants
National Electrical Manufacturers Association
National Ready Mixed Concrete Association
National Restaurant Association
National Retail Federation
National Roofing Contractors Association
National Wood Flooring Association
Nebraska Chamber of Commerce & Industry
Nebraska Retail Federation
New Mexico Retail Association
North Carolina Chamber
North Dakota Chamber of Commerce
Nuclear Energy Institute
Outdoor Amusement Business Association, Inc.
Pennsylvania Chamber of Business and Industry
Real Estate Roundtable
Retail Industry Leaders Association
Rochester Area Chamber of Commerce
Rocky Mountain Chapter, Associated Builders and Contractors
Rowan County Chamber of Commerce
Salisbury Area Chamber of Commerce
Schuylkill Chamber of Commerce
Spring River Chamber of Commerce
Small Business & Entrepreneurship Council
St. Charles (Missouri) Chamber of Commerce
Tempe Chamber of Commerce
Texas Association of Business
Texas Retailers Association
The Chamber Southwest Louisiana
The Greater El Paso Chamber of Commerce
The Prince William Chamber of Commerce
The State Chamber of Oklahoma
Tucson Metropolitan Chamber of Commerce
Tulsa Metro Chamber of Commerce
U.S. Chamber of Commerce
Utah Restaurant Association
Washington Automotive Wholesalers Association
West Virginia Chamber of Commerce
Western DuPage Chamber of Commerce
White Pine Chamber of Commerce
Wisconsin Grocers Association, Inc.