January 23, 2013

Debt-ceiling strategy: Just ignore it

A House vote Wednesday could preserve the limit yet allow borrowing to continue through May 18.

The Washington Post

WASHINGTON — Forget about raising the federal debt limit. House Republicans are proposing to ignore it altogether -- at least until May 18.

The House plans to vote Wednesday on a measure that would leave the $16.4 trillion borrowing limit intact but suspend it from the time the bill passes until mid-May. The declaration that the debt ceiling "shall not apply" means that the government could continue borrowing to cover its obligations to creditors until May 18.

This approach -- novel in modern times -- would let Republicans avoid a potentially disastrous fight over the debt limit without actually voting to let the Treasury borrow more money.

The House Ways and Means Committee unveiled the measure Monday; it was scheduled for a hearing in the Rules Committee on Tuesday and to hit the House floor on Wednesday. In addition to postponing a partisan fight over the debt limit, the measure seeks to force Senate Democrats to negotiate over a formal budget resolution by mandating that lawmakers' paychecks be held in escrow starting April 15 unless Congress adopts a comprehensive blueprint for spending and tax policy.

White House spokesman Jay Carney said Tuesday that the White House welcomes the House Republicans' decision on the debt limit and that President Obama "wouldn't stand in the way" if the bill passes the House. "Clearly, we support extension of the debt ceiling without drama or delay. That has been his position forever -- as president and since we've had these rather novel debates about whether or not we should engage in games of chicken over the full faith and credit of the United States."

Later in the day the White House released a statement saying that it "would not oppose a short-term solution to the debt limit and looks forward to continuing to work with both the House and the Senate to increase certainty and stability for the economy."

The statement, from the White House Budget Office, said that although the House proposal "is a short-term measure and introduces unnecessary complications ... the Administration is encouraged that (the bill) lifts the immediate threat of default and indicates that congressional Republicans have backed off an insistence on holding the Nation's economy hostage to extract drastic cuts in Medicare, education, and other programs that middle-class families depend on."

Senate Majority Leader Harry Reid, D-Nev., praised the measure as "a clean debt ceiling bill" and said that "I'm glad we're not facing crisis here in the matter of a few days." He said he would meet with Senate Budget Committee Chairwoman Patty Murray, D-Wash., to discuss the bill's no-budget, no-pay provision.

"I'm happy they sent us a debt ceiling not tied to entitlement cuts and dollar for dollar [cuts]," Reid said. "That's a big step in the right direction. The other stuff on it, Sen. Murray is going to be the spokesperson on that for the next 24 hours or so. We'll see how she wants to proceed."

House Minority Whip Steny Hoyer, D-Md., however, blasted the Republican measure as a diversion tactic Tuesday.

Doubts about passage of the House measure were allayed Tuesday when a small but influential clutch of conservative lawmakers signaled that they would support the bill, as long as top leaders keep a vow to vote soon on a 2014 budget plan that would balance the budget within the next decade.

Rep. David Schweikert, R-Ariz., said Tuesday that he and others would hold the leaders to their promise: "In 90 days, this is going to be the ultimate test of the relevancy of those we entrust with those leadership positions. And I believe there'd be hell to pay if they squander this."

 

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)