Hoyer Discusses Debt Negotiations

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ROBERT SIEGEL, host: Now, if there aren't enough Republican votes in the House to approve a plan that would actually become law, are there potentially Democratic votes in the wings? Well, joining us from Capitol Hill is the House Democratic Whip, the second-ranking Democrat in the House, Steny Hoyer of Maryland.

Representative STENY HOYER: Glad to be with you.

SIEGEL: And first of all, you said you don't think that Speaker Boehner could expect much help from Democrats. How many Democrats do you think might vote for his plan?

HOYER: I think there may be no Democrats voting for this plan because we believe that it is a plan that it's going to keep us in the same position we find ourselves in now, continue to roil the markets and the economy and be negative as it relates to trying to grow our economy and trying to create jobs as the economy struggles.

SIEGEL: As you understand it, is the House still operating on the assumption that August 2nd is a deadline and something had better be passed and signed by that date, or do people now accept, say, Republican skepticism about that date or the stories that cash flow might be a little bit better at the Treasury? You could push the deadline back. Which is the case, still August 2nd?

HOYER: We are operating and the administration is operating under the premise that on August 2nd our ability to pay our bills will be curtailed very substantially. Therefore, we believe that the responsible thing to do is to act prior to August 2nd so that for the first time in history the United States is not put in a position where it can't pay its bills.

SIEGEL: Well, given what you've said about Speaker Boehner's plan, if that's the way it's going to be regarded by Democrats in the Senate, next week it seems very unlikely that something will emerge from Capitol Hill that can avert default. I mean...

HOYER: Well...

SIEGEL: ...say something hopeful, say something encouraging.

HOYER: Well, I would like to be encouraging. I think I can be encouraging to this extent. Senator Reid has introduced in the Senate a bill that tracks very closely what he and Minority Leader Mitch McConnell discussed. That bill does exactly what Speaker Boehner indicated he wanted, and that is a long-term solution. That is long term through January, February 2013, and it is dollar for dollar an increase in the debt will be matched by an increase in cut and spending.

SIEGEL: Can you imagine a vote sometime next week, late at night, right at the deadline with the Treasury about to put a hold on checks and the markets looking like they're ready to tank, when lots of you on Capitol Hill vote for something that you really don't like and that really conflicts with some pretty deeply held ideas you have, but the alternative, default, is just too bad, and you have to bring yourself to that point?

HOYER: You know, I think - responsibly, I think members are going to have to look that eventuality in the eye. Frankly, I would vote for a clean debt limit extension to preclude default because default will hurt every American.

SIEGEL: But there is a dynamic here of chicken happening, which is each side saying I'm convinced the other guy is more afraid of default than I am, so he'll come around to my position. I can stand pat. I can hold firm.

HOYER: There's nobody in our party who believes default is an acceptable alternative. There are a number of people who have articulated default as an acceptable alternate on the Republican side.

SIEGEL: But if President Obama...

HOYER: Now, if you have a...

SIEGEL: But if President Obama - let me stop you there. If President Obama suggests he might veto something and there's nothing else in the works instead, isn't he implying by that, yeah, you're not the only one who can threaten going over the brink. I might be forced to take us over the brink.

HOYER: I think it's clear that that's what he's saying and what he's saying is a short term extension continues to politicize this issue, continues to roil the economy and continues to put America at risk. And he's not prepared to do that and so that's why he's made it clear that he is not for, nor will he support a short term extension.

SIEGEL: Representative Hoyer, thank you very much...

HOYER: Thank you.

SIEGEL: ...for talking with us today. Steny Hoyer, a Democrat of Maryland, who is the Democratic whip. He spoke to us from Capitol Hill.

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