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If they vote to not raise the debt ceiling, deny their state Federal Funds.

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ErikJ Donating Member (480 posts) Send PM | Profile | Ignore Tue Jun-07-11 08:08 PM
Original message
If they vote to not raise the debt ceiling, deny their state Federal Funds.

A caller on Thom Hartmann show suggested this idea last week.

Because of 1985 GAO Ruling we can deny Federal funds to the states that vote to NOT raise the debt ceiling. Summary

TREASURY DEPARTMENT - SECRETARY OF TREASURY - AUTHORITY - PAYMENT OF OBLIGATIONS DIGEST: THE SECRETARY OF THE TREASURY HAS THE AUTHORITY TO DETERMINE THE ORDER IN WHICH OBLIGATIONS ARE TO BE PAID SHOULD THE CONGRESS FAIL TO RAISE THE STATUTORY DEBT CEILING AND REVENUES ARE INADEQUATE TO COVER ALL REQUIRED PAYMENTS. THERE IS NO STATUTE OR ANY OTHER BASIS FOR CONCLUDING THAT THE TREASURY MUST PAY OUTSTANDING OBLIGATIONS IN THE ORDER THEY ARE PRESENTED FOR PAYMENT. TREASURY IS FREE TO LIQUIDATE OBLIGATIONS IN ANY ORDER IT DETERMINES WILL BEST SERVE THE INTERESTS OF THE UNITED STATES. COMMITTEE ON FINANCE UNITED STATES SENATE YOU HAVE REQUESTED OUR VIEWS ON WHETHER THE SECRETARY OF THE TREASURY HAS AUTHORITY TO DETERMINE THE ORDER IN WHICH OBLIGATIONS ARE TO BE PAID SHOULD THE CONGRESS FAIL TO RAISE THE STATUTORY LIMIT ON THE PUBLIC DEBT OR WHETHER TREASURY WOULD BE FORCED TO OPERATE ON A FIRST IN-FIRST-OUT BASIS.



http://www.gao.gov/products/449522


A great video of Thom Hartmann explaining this idea that was posted on the DU videos earlier. http://www.thomhartmann.com/bigpicture/thom-hartmann-does-obama-have-secret-weapon-debt-ceiling-debate
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FBaggins Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-11 08:14 PM
Response to Original message
1. States don't vote in Congress.
Except in the case of an Electoral College tie.
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larkrake Donating Member (101 posts) Send PM | Profile | Ignore Tue Jun-07-11 09:09 PM
Response to Reply #1
2. their representatives and senators vote, good enough for me
as it stands, reps and senators are not doing their jobs, so let them get un-elected by constituants.
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FBaggins Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-07-11 09:14 PM
Response to Reply #2
3. So if all eight republicans from NY vote for it... the rest of the state has to suffer?
let them get un-elected by constituants.

I think that the people who would get "un-elected" would be the ones who decided to tax the citizens of a state but not pay out federal funds to their benefit because of their political positions.
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ErikJ Donating Member (480 posts) Send PM | Profile | Ignore Tue Jun-07-11 09:18 PM
Response to Reply #1
4. Sorry, I meant states of the congress members who vote against raising debt ceiling.
Because of 1985 GAO Ruling we can deny Federal funds to the states of Congress members that vote to NOT raise the debt ceiling.
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