May 3, 2011

White House Continues To Push For Blank Check On Future Debt

Yesterday, the Obama Administration, yet again, requested that Congress increase the debt ceiling and claimed that it should be done without any of the structural changes and spending cuts sought by House Republicans to end Washington’s out of control spending and get our economy back on track.

In His Letter To Congress, Treasury Secretary Timothy Geithner “Dismissed The Idea Of Linking” A Debt Increase To Structural Spending Reforms. “President Obama and Geithner have called for a vote on the debt limit that is not linked to any actions. Some congressional Democrats favor a trigger that would cut spending and raise taxes if budget goals are not met within a few years. Many Republicans favor hard caps on spending and don’t want to raise taxes at all. But Geithner dismissed the idea of linking the debate over the nation’s long-term fiscal picture to the debt limit.” (Zachary A. Goldfarb, “Deadline To Raise U.S. Debt Ceiling Pushed To Aug. 2, Geithner Says,” The Washington Post, 5/2/11)

But, before the President again dismisses the idea of finally addressing the country’s mounting debt to help grow jobs and the economy, President Obama may want to check with prominent members of his own party, who have signaled for weeks that they would not vote for “any long-term extension” without a serious debt plan.