Washington, D.C. – Congress should pass President Bush’s request to increase the nation’s debt ceiling without delay, said Taxpayers for Common Sense, a national taxpayer organization.

“Unless Congress puts aside partisanship and votes to increase the debt ceiling, there is a very real possibility that the federal government could default on some portion of its obligations, ” said Joe Theissen, Executive Director of Taxpayers for Common Sense. “It is irresponsible to put at risk the Treasury’s ability to sell government obligations to cover the nation’s debts. If the debt ceiling is reached and the Treasury cannot issue any new debt, the full faith and credit of the United States will be meaningless.”

According to the Treasury Department, the government’s debt ceiling of $5.95 trillion will be met in the next few weeks. Unless Congress votes on the President’s proposal to increase the debt ceiling by $750 billion, the Treasury will be unable to redeem government bonds due and raise any additional money to cover the nation’s debts.

The reverberations of such a decision will be felt by the financial markets all around the world and could undermine economic recovery. Over the longer-term, defaulting on the nation’s debt will increase the costs of borrowing quite substantially.

Congress last increased the debt ceiling in the 1997 Balanced Budget Act. Since revenues have been greater than expected and spending somewhat constrained, it has not been necessary to increase the debt ceiling since 1997.

Increasing the debt ceiling has always been a political football. During the 1980s and 1990s Republican lawmakers refused to support debt ceiling increases, and the House Democratic leadership is today unwilling to support the President’s request for political reasons.

“Debt ceiling legislation is not the proper arena for debate on spending priorities. Rather than use this must-pass legislation to posture politically, members of Congress should put forward real proposals in the budget and appropriations process that is getting underway this week to reduce spending and the national debt, ” continued Theissen.

“American taxpayers will not be fooled by the actions of lawmakers who consistently vote to increase spending and provide large tax breaks and then turn around and announce that they refuse to provide the financing to pay for that excessive spending. “Congress needs to pass a debt ceiling increase soon, before it is too late,” concluded Theissen.

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