Standard & Poor’s downgraded the US’s credit rating because of Republicans “resist any measure that would raise revenues”
The downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges.
- Standard and Poor’s research update, page 2.
We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process.
- Standard and Poor’s research update, page 3, listed under “Rationale”
We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.
- Standard and Poor’s research update, page 4.
So, there you have it, the US has had it’s credit rating downgraded because of republican resistance to raising revenues.