Republican Congressman Dan Lungren voted in favor of the deficit reduction bill that passed through the U.S. House yesterday.
It includes raising the U.S. debt limit and cutting around $2 trillion over the next decade.
“We need to pay our bills and raising the debt ceiling allows us to cover those bills that have already been incurred,” says Lungren, who represents District 3. “This is accompanied, for the first time in my memory, by significant spending cuts going forward. That’s the other part that was so important.”
The vote was 269-161. Many financial analysts had warned that failing to increase the debt ceiling would have negatively affected the country’s credit rating, which could have sent the markets tumbling.
“I would not be surprised if we still have some downgrading in our overall credit rating because this came so late, and because it’s just a first step,” says Lungren “This is an indication that Washington is going to change its ways, but you still need steps two and three.”
District 19 Congressman Jeff Denham also voted in favor of the debt package.
President Obama stated earlier this week at a Press Conference, “Now, is this the deal I would have preferred? No. I believe that we could have made the tough choices required — on entitlement reform and tax reform — right now, rather than through a special congressional committee process. But this compromise does make a serious down payment on the deficit reduction we need.”
The legislation goes to the U.S. Senate today, and it is later expected to be signed by the President.