By Erik Wasson - 08/01/11 02:45 PM EDT
Big business is pushing Congress to approve the bipartisan debt compromise as soon as possible.
Corporate lobbyists have been urging Congress for weeks to remove the possibility of a default after Aug. 2. This has put them at odds with Tea Party activists and conservative groups such as Heritage Action and the Cut, Cap and Balance Coalition, which oppose the new compromise.
Wall Street's top lobbying group is also urging a yes vote today.
“S. 627 would immediately raise the debt ceiling and make discretionary spending cuts; while providing a framework for future steps to reduce the budget deficit,” said Steve Bartlett, president and CEO for the Roundtable. “The failure to pass this legislation will have long-term negative and damaging effects on the American economy. Congress must act now.”
The Chamber of Commerce announced that it is scoring the vote on the debt deal.
"As is the nature of all compromises, this bill is not perfect. It does not fix America’s long-run debt and deficit problems, nor reform the tax code, two things that Congress still must do. But this legislation is the right thing to do, now," the Chamber's top lobbyist Bruce Josten wrote in a letter to all members.
The nation’s retailers are also in favor.
“The National Retail Federation commends the Administration and Congressional leaders for coming together in a demonstration of bipartisan cooperation. We now encourage Congress to act swiftly and support this deal that would raise the debt ceiling and help avoid the economic catastrophe that would stem from defaulting on our debt,” NRF President Matthew Shay said.
Engler praised the specifics of the all-cuts debt-ceiling compromise that would all but guarantee the debt ceiling is raised through 2012.
“It has spending cuts and sets in motion a process to put our country on a responsible fiscal path. The triggers contained in the legislation have teeth which will keep everyone working on this until the job is done,” he said.
The debt-ceiling deal includes $917 billion in immediate deficit reduction due to discretionary spending caps. It empowers a joint committee to find $1.5 trillion in additional savings by Nov. 23; if that committee fails to act, defense and non-defense spending will be cut automatically. The non-defense triggers include Medicare but not Social Security or Medicaid.
Updated at 1:30 p.m.