Debt Limit Tick Tock

Posted by Brian Patrick on

FYI – 

Today, the House is poised to vote on a debt limit package that cuts spending more than it increases the debt limit, does not raise taxes, and implements spending caps to restrain future spending. This agreement marks considerable progress from President Obama’s original stance which was asking for a clean debt limit increase without spending cuts, and then his insistence on raising taxes on families and small business people. The final package demonstrates that House Republicans have begun to change the culture in Washington and get our fiscal house in order so that this economy can grow and create jobs.


In April, Press Secretary Jay Carney Made Clear The President Supports A Clean Debt Limit Increase. “... we believe that we should move quickly to raise the debt limit and we support a clean piece of legislation to do that. (Press Briefing, 4/11/11)

President Obama Declared A Debt Ceiling Increase Was Not Going To Happen Without Spending Cuts. "I think it's absolutely right that it's not going to happen without some spending cuts," the president told The Associated Press in an interview in his hometown, agreeing with House Speaker John Boehner's assessment. (The Associated Press, 4/15/11)

  • The Next Day: Press Secretary Jay Carney Walked Back The President’s Statement Saying, “That’s Not His Position At All.” (Pool Report, 4/15/11)
  • At The End Of April, WH Chief Of Staff Bill Daley Admitted A Clean Debt Limit Vote Shouldn’t Happen Without Addressing Spending. "Nobody thinks there will be a clean debt ceiling extension vote," Daley said. "There probably shouldn't be, without some changes [in spending]. The budget deficit is a real thing that has to be addressed." (The Los Angeles Times, 4/29/11)
     

In May, CEA Chairman Austan Goolsbee Said Tying The Debt Ceiling To Spending Cuts Was ‘Quite Insane.’ Linking efforts to reduce long-term federal deficits with a congressional vote to raise the government’s debt limit puts U.S. credit at risk, President Barack Obama’s chief economic adviser told a Chicago audience. “To tie this to the debt limit is, in my view, quite insane,” Austan Goolsbee, chairman of the Council of Economic Advisers, said today to the Chicagoland Chamber of Commerce and other business leaders. (Bloomberg, 5/11/11) 

  • Vice President Biden: Revenues Must Be A Part Of The Final Deal. "We're confident that if we keep on this pace, we will get to a very large number," Biden said, adding, "At the end of the day, revenues are going to have to be a part of the deal." (The Huffington Post, 5/24/11)


In June, President Obama Continued To Push For Increased Revenues. The debt ceiling needs to be raised by around $2.4 trillion to ensure that the government has enough money to keep functioning through the November 2012 election. Republicans say they want spending cuts to equal any increase in the limit, but the administration is pushing for a package that also includes revenues. Obama favors $3 dollars in spending cuts for every extra dollar in revenue. (Reuters, 6/27/11)

  • VP Biden, Sec. Geithner Made Attempted To Pressure Republicans On Higher-Revenue Issues. Vice President Joe Biden and Treasury Secretary Tim Geithner pressed Republicans to accept higher revenue to help curb deficits in talks aimed at achieving a plan to raise the U.S. debt limit before Aug. 2, two congressional aides said. Republicans countered during the private meeting yesterday that any tax increase would hurt the economy and couldn’t pass the Republican-led House, said the aides, who spoke on condition of anonymity as lawmakers stepped up attempts to reach an agreement. The two aides weren’t authorized to discuss the talks publicly. (Bloomberg, 6/10/11)
  • At The End Of June, President Obama Declared The Amount Of Deficit Reduction Necessary Cannot Occur Without Higher Taxes. “You can't reduce the deficit to the levels that it needs to be reduced without having some revenues in the mix," Mr. Obama said during a news conference Wednesday. (The Wall Street Journal, 6/30/11)


By The End Of July, President Obama Remained The Only Major Player Insisting On Tax Increases. As Republicans and Democrats continue trying to hammer out the details of rival plans to avert a debt crisis, President Obama on Monday called for a proposal that will raise more revenue ... At the moment, neither Senate Democrats nor House Republicans are talking about tax revenues as part of the final deal. (The Los Angeles Times, 7/25/11)

  • President Obama Continued To Call For Tax Hikes Despite His Own Party Abandoning Them. We've watched dozens of these speeches over the years, and this was more like a DNC fund-raiser than an Oval Office address. Though President Obama referred to the need to compromise, his idea of compromise was to call on the public to overwhelm Republicans with demands to raise taxes. ... One irony is that Mr. Obama's demands for tax increases have already been abandoned by Members of his own party in the Senate. Majority Leader Harry Reid knows that Democrats running for re-election next year don't want to vote to raise taxes, so he's fashioning a bill to raise the debt ceiling that includes only reductions in spending. But Mr. Obama never mentioned that rather large fact about Mr. Reid's effort. (The Wall Street Journal, 7/25/11)
     




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