US debt ceiling, sequester battle will be ‘ugly,' says ACC CEO

16 January 2013 21:08  [Source: ICIS news]

NEW YORK (ICIS)--The fight over raising the US debt ceiling and the automatic drastic spending cuts called the “sequester” will be “ugly,” the head of the American Chemistry Council (ACC) said on Wednesday.

“It is unfortunate that the deal on the fiscal cliff in January wasn’t managed in a way that contributed to a political environment conducive for people to get together,” said ACC CEO Cal Dooley, speaking at a meeting of the Societe de Chimie Industrielle in New York.

“This contributed to greater polarisation among the two parties,” he added.

Dooley served as a Democratic congressman from California in the US House of Representatives from 1991-2004.

He noted that Senate Minority Leader Mitch McConnell and House Speaker John Boehner have said there would be no increase in taxes, while President Obama has said there would be no spending cuts without increased revenues.

“The parties could find a way to postpone some spending cuts and modestly increase revenues. They could also kick the can down the road again with short-term debt ceilings that are hit every two months,” Dooley said. “However, any successful long-term deal will require entitlement reforms that have yet to be brought to the table.”

The ACC head also noted that US chemical companies are expressing some concern about the situation.

“Anything that raises fiscal uncertainty causes concern,” Dooley said.

By: Joseph Chang
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