by “So far, the president has only outlined an irresponsible budget that would impose a job-crushing $1.5 trillion tax hike, add $9.1 trillion to the debt over the next decade, and do nothing to address our autopilot spending. Instead, it locks in place the spending binge that has increased every child's share of the national debt to $45,000.”
-- House Speaker John Boehner in a USA Today op-ed.
On Wednesday, President Obama will make his case for the fourth increase in the federal debt ceiling since taking office.
The $1.9 trillion increase in borrowing power granted Obama in February 2010 is just about exhausted, and the president and his financial team have warned of a worldwide depression if Congress doesn’t extend the government’s credit limit in the next month.
Aside from backing a tax increase, there is little as unpopular that a president can do on fiscal policy than push up the debt ceiling. Voters in surveys overwhelmingly oppose the idea, even if it means a government shutdown.
Having just taken a pasting in the negotiations with House Republicans over funding the government for the rest of the fiscal year and facing much higher stakes, Obama is looking to get out in front on this issue. Republicans have made it clear that there will be no increase in borrowing power unless Obama is willing to back structural changes to the long-term structure of the federal debt load.
Obama is expected on Wednesday to call for a tax code overhaul to close loopholes on deductions and increase tax rates for upper income earners. He will also discuss his willingness to consider changes to the biggest drivers of the debt in the near term – Medicaid and Medicare.
The president punted on these questions in his own budget and Republicans seized the initiative with Rep. Paul Ryan’s budget proposal, leaving the president at a disadvantage on the increasingly important issue. The credibility gap hurt Obama in final negotiations over the spending levels for the current fiscal year.
Republicans are talking about a balanced budget amendment or the adoption of Ryan’s blueprint as the price Obama must pay for more borrowing power, outcomes that would be catastrophic defeats for the already struggling president.
That suggests that the president would be well served to make his request for more debt rather modest. If he asks for another $1.9 trillion, Obama might be on the hook for big concessions on spending.
But, if Obama doesn’t ask for at least $1.6 billion, he might be forced to ask for another bump before the 2012 election, not exactly a good campaign talking point.
Between now and Wednesday, the White House will be sketching out the scope of Obama’s initial offer on the debt ceiling. If it seems like the president is talking about broad, systemic changes, get ready for a big ask on debt and an equally large battle.
Source - read more..
-- House Speaker John Boehner in a USA Today op-ed.
On Wednesday, President Obama will make his case for the fourth increase in the federal debt ceiling since taking office.
The $1.9 trillion increase in borrowing power granted Obama in February 2010 is just about exhausted, and the president and his financial team have warned of a worldwide depression if Congress doesn’t extend the government’s credit limit in the next month.
Aside from backing a tax increase, there is little as unpopular that a president can do on fiscal policy than push up the debt ceiling. Voters in surveys overwhelmingly oppose the idea, even if it means a government shutdown.
Having just taken a pasting in the negotiations with House Republicans over funding the government for the rest of the fiscal year and facing much higher stakes, Obama is looking to get out in front on this issue. Republicans have made it clear that there will be no increase in borrowing power unless Obama is willing to back structural changes to the long-term structure of the federal debt load.
Obama is expected on Wednesday to call for a tax code overhaul to close loopholes on deductions and increase tax rates for upper income earners. He will also discuss his willingness to consider changes to the biggest drivers of the debt in the near term – Medicaid and Medicare.
The president punted on these questions in his own budget and Republicans seized the initiative with Rep. Paul Ryan’s budget proposal, leaving the president at a disadvantage on the increasingly important issue. The credibility gap hurt Obama in final negotiations over the spending levels for the current fiscal year.
Republicans are talking about a balanced budget amendment or the adoption of Ryan’s blueprint as the price Obama must pay for more borrowing power, outcomes that would be catastrophic defeats for the already struggling president.
That suggests that the president would be well served to make his request for more debt rather modest. If he asks for another $1.9 trillion, Obama might be on the hook for big concessions on spending.
But, if Obama doesn’t ask for at least $1.6 billion, he might be forced to ask for another bump before the 2012 election, not exactly a good campaign talking point.
Between now and Wednesday, the White House will be sketching out the scope of Obama’s initial offer on the debt ceiling. If it seems like the president is talking about broad, systemic changes, get ready for a big ask on debt and an equally large battle.
Source - read more..
