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Saturday, October 22, 2016

U.S. Congress Eyes Another Debt Ceiling Showdown

U.S. Congress Eyes Another Debt Ceiling Showdown

WASHINGTON (AFP) – Signaling an autumn fiscal showdown, the top Republicans in the U.S. House and Senate warned Tuesday that extending federal borrowing authority would require fresh spending cuts.

“We’re not going to raise the debt ceiling without real cuts in spending. It’s as simple as that,” House Speaker John Boehner told reporters.

“I believe the so-called Boehner rule is the right formula for getting that done,” he added, referring to the rule that matches new debt authority with dollar-for-dollar spending cuts.

Boehner’s remarks come as Obama, with whom he spent weeks negotiating an ill-fated grand fiscal bargain in 2011, stakes out his position this week with a series of speeches on the economy.

White House spokesman Jay Carney spoke to the looming debt ceiling battle — likely to begin after lawmakers’ August recess — saying “we will not negotiate over Congress’s responsibility to pay the bills that Congress racked up.”

“It is highly irresponsible to even flirt with that prospect,” Carney added.

Senate Majority Leader Harry Reid sounded a note of frustration when confronted with the same issue.

“We are not negotiating on the debt ceiling,” he said. “I don’t know how many more times we need to say that.”

Republicans were able to extract some tax cuts from Obama in 2011 in exchange for raising the debt ceiling, but the issue came to a head late last year during the so-called “fiscal cliff,” a collection of spending cuts and automatic tax hikes.

Congress ended up raising taxes for those making over $400,000 per year, but it also allowed the automatic across-the-board spending cuts known as “sequestration” to take effect.

Obama and economists warned of the dire effects of the sequester. Although the economy has grown in 2013, some say the growth would have been stronger without the spending cuts.

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