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Boehner Lays Down the Debt-Ceiling Gauntlet
Townhall.com ^ | May 10, 2011 | Larry Kudlow

Posted on 05/10/2011 5:37:07 AM PDT by Kaslin

House Republican Speaker John Boehner will give an important policy speech on the debt ceiling tonight at the Economics Club of New York. This is probably the key paragraph (taken from an advanced look at the speech): “So, let me be as clear as I can be. Without significant spending cuts and reforms to reduce our debt, there will be no debt-limit increase. And the cuts should be greater than the accompanying increase in debt authority the president has given. We should be talking about cuts of trillions, not just billions.”

In plain English, Mr. Boehner is making this suggestion: Let’s say there’s a $2 trillion debt-limit increase proposed by the administration. In that case, there would have to be $2 trillion-plus in spending cuts in order to get Republican support. This is tough stuff.

By the way, the speaker argues that only tax hikes are off the table in the debt-ceiling discussion. He also insists that any debt deal must “reform the budget process.” However, the speaker does not specify budget-process reform.

That’s where there’s gonna be a big debate between an administration that wants deficit targets and many Republicans who want spending caps as a share of GDP. The former could still allow for tax hikes in the form of eliminating deductions, credits, and other so-called tax expenditures. It would seem that Boehner rules this out, but he does not explicitly say so. A spending cap, however, whether as a share of GDP or as a targeted level of some sort, would rule out any tax increases at all.

The White House believes that eliminating tax expenditures is a spending cut through the tax code. But unless this is accompanied by tax-rate reductions, it’s an anti-growth tax hike.

In terms of the overall budget going beyond the debt ceiling, Boehner talks about pro-growth tax reform and overhauling the code. He even quotes President John F. Kennedy in 1962. Speaking before the Economics Club of New York, JFK talked about the need to lower tax rates in order to generate more revenues to balance the budget.

Kennedy believed in the supply-side incentive model, and Boehner does too. But tax reform will not be part of the debt-ceiling discussion.

Finally, Boehner does state that “allowing America to default would be irresponsible. . . . But it would be more irresponsible to raise the debt ceiling without simultaneously taking dramatic steps to reduce spending and reform the budget process.”

So Speaker Boehner lays down the gauntlet. You want to raise the debt ceiling? Then we need an equal amount of spending cuts to go along with the higher borrowing authority. It looks like a good start. But of course, the Joe Biden talks will go on. We’ll see what happens next.


TOPICS: Business/Economy; Editorial
KEYWORDS: boehner; budget; debtceiling; debtlimit; economy; taxes; taxhikes

1 posted on 05/10/2011 5:37:09 AM PDT by Kaslin
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To: Kaslin
And the cuts should be greater than the accompanying increase in debt authority the president has given.

If cuts are greater than the accompanying increase in debt authority, why raise the debt ceiling?

2 posted on 05/10/2011 5:39:57 AM PDT by deadrock (Be kind to most, some you meet are fighting a hard battle. -Apologies to Philo)
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To: Kaslin

They’ve watched him bluff and fold before.

There’s no concern he’s able to play even a strong hand.

That’s the problem with folding early, pretending you’ll fight hard next time...


3 posted on 05/10/2011 5:42:26 AM PDT by G Larry (I dream of a day when a man is judged by the content of his character)
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To: DEADROCK
If cuts are greater than the accompanying increase in debt authority, why raise the debt ceiling?

Because they will play the same "spend now cut later" game they always play. Unfortunately later never comes.

This will not end well for the country.

4 posted on 05/10/2011 5:43:35 AM PDT by BoringGuy
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To: DEADROCK

>>> If cuts are greater than the accompanying increase in debt authority, why raise the debt ceiling? >>>

The cuts wouldn’t happen instantaneously — but in general, that is the bargain we’re talking about: You raise the debt ceiling in order to get the Democrats to go along with the huge cuts. That’s the other side of the leverage in this issue.


5 posted on 05/10/2011 5:44:27 AM PDT by C. Edmund Wright (American Thinker Columnist / Rush ghost contributor)
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To: G Larry

Maybe you would prefer Nancy Pelosi as speaker.


6 posted on 05/10/2011 5:45:00 AM PDT by Perdogg (0bama got 0sama?? Really, was 0sama on the golf course?)
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To: Kaslin

I have been sorely disappointed with Boehner as House Speaker. He comes across as being all show and no go.

This is what we get when the Establishment GOP has their boys in charge.

We need to avoid the “weak sister” RINO at all cost.


7 posted on 05/10/2011 5:47:32 AM PDT by Howie66 (I can see November (2012) from my house.)
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To: Kaslin

What is he going to do demand real fake cuts this time. Are will it be more fake, fake cuts.


8 posted on 05/10/2011 5:47:58 AM PDT by org.whodat
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To: Kaslin

They’ll cave.


9 posted on 05/10/2011 5:50:28 AM PDT by crosshairs (Say what you want about the South, but you never hear of anyone retiring and moving north.)
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To: DEADROCK

That’s it you need to leave the room, no common sense allowed in congress.


10 posted on 05/10/2011 5:50:28 AM PDT by org.whodat
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To: Perdogg

Maybe you would grow up and find a way to demand our side fight rather than fold, or there will be no difference between the two?


11 posted on 05/10/2011 5:51:28 AM PDT by G Larry (I dream of a day when a man is judged by the content of his character)
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To: Kaslin
Enough of this Beltway Kabuki Theater

Can't we elect anything but phonies?

12 posted on 05/10/2011 5:51:43 AM PDT by Elle Bee
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To: Kaslin

When he folded on the Continuing Resolution (CR) he used phrases such as, “there is a political reality” and, “it was the best deal available.”

Expect more of the same as he gets steamrolled again.


13 posted on 05/10/2011 5:52:51 AM PDT by JohnG45
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To: Kaslin
House Republican Speaker John Boehner will give an important policy speech on the debt ceiling tonight ...

... meanwhile, Senor Wee Wee will be in El Paso on another campaign junket sucking up to the illegal alien vote rather than exerting any vestige of leadership.

14 posted on 05/10/2011 5:58:01 AM PDT by Zakeet (U.S. Navy SEAL cocktail - two shots and a splash of water)
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To: DEADROCK
LET HIM KNOW HOW YOU FEEL~!

http://www.speaker.gov/Contact/

15 posted on 05/10/2011 5:58:58 AM PDT by Mr. K (this administration is WEARING OUT MY CAPSLOCK KEY~!! [Palin/Bachman 2012])
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To: Kaslin

Boener Lays Down


16 posted on 05/10/2011 5:59:43 AM PDT by bray (What do you think of water boarding now, Obama?)
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To: Kaslin

No real substance, just a theater production with Kabuki performers


17 posted on 05/10/2011 6:00:58 AM PDT by iontheball
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To: Kaslin

Harry Reid: “Jump”!

Boehner: “How high”?


18 posted on 05/10/2011 6:05:54 AM PDT by JohnG45
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To: Kaslin

Wimpy little crybaby....


19 posted on 05/10/2011 6:06:31 AM PDT by isthisnickcool (Sharia? No thanks.)
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To: iontheball

You got that right! If Boehner really gave a rats arse, he wouldn’t be kowtowing - he is establishment all the way. Is this the best you can do CINCINNATI????

Defunding EPA, DO-ENERGY, DO-EDUCATION, DO-HEALTH&HUMAN SERVICES would be a good start. Let the citizens and the States keep their tax dollars to take of their own business. You can do that all right now, Speaker (Talker) Boehner - so get on with it.


20 posted on 05/10/2011 6:06:46 AM PDT by Sioux-san
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To: Kaslin
NPR (and other outlets) consistently reports this as: "If we do not raise the debt ceiling, we will default".

This is simply not so, and is a bald-faced lie told by the media.

21 posted on 05/10/2011 6:13:58 AM PDT by ClearCase_guy (The USSR spent itself into bankruptcy and collapsed -- and aren't we on the same path now?)
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To: Kaslin

To quote a recently separated, former governor:

http://www.youtube.com/watch?v=M0xh9aClr3Y


22 posted on 05/10/2011 6:15:06 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Kaslin

Boner is really stupid if he can’t back this up and from his past recent decisions regarding the budget, this seems doubtful. Although the stakes are higher,it is likely that he will again play the fool. This does nothing for his chances for his retention as speaker and even his own re-election in his district.
Why is Boner risking his political career to defy the will of his constituents and most Americans who believe in fiscal responsibility?


23 posted on 05/10/2011 6:16:38 AM PDT by grumpygresh (Democrats delenda est)
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To: Zakeet
... meanwhile, Senor Wee Wee will be in El Paso on another campaign junket sucking up to the illegal alien vote rather than exerting any vestige of leadership.

Excellent point. Unfortunately it seems to be ignored by some here because of the hatred they have for John Boehner

24 posted on 05/10/2011 6:20:10 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

This has to be the second stupidest thing I have ever heard from these idiot establishmnet players. The only one that tops this...we had to abandon the principles of the free market to save the free market!

My God...just how stupid are these people? Cut the debt by trillions and you no longer have a debt ceiling problem. In fact lower the debt ceiling by trillions as well!


25 posted on 05/10/2011 6:29:21 AM PDT by surfer (To err is human, to really foul things up takes a Democrat, don't expect the GOP to have the answer!)
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To: Kaslin

Will he cry first, compromise second? Or the other way around?


26 posted on 05/10/2011 6:32:03 AM PDT by Jane Long (2 Chron 7:14)
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To: G Larry
They’ve watched him bluff and fold a before

There’s no concern he’s able to play even a strong hand.

Spot on!

Anyone who has seen the "Weeper of the House" fold time and again (though holding a Royal Flush) like a cheap suit, would seriously doubt he will stand pat or realllly call their bluff.

Hey Boner: It's called "Speak softly and carry a big stick!"

So far, all you and the squishy, wuss, Republi-Tards have done is bluster, sputter, and caved at the 1st sign of an intransigent, Dear Leader and Demo-Rats as well as demonization by the State-Run Media.

27 posted on 05/10/2011 6:33:00 AM PDT by Conservative Vermont Vet (l)
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To: Kaslin
Unfortunately it seems to be ignored by some here because of the hatred they have for John Boehner.

Hatred? No.

John Boehner has earned my distrust. Look at his track record or lack there of.

28 posted on 05/10/2011 6:34:13 AM PDT by JohnG45
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To: Kaslin

Who are you kidding, Boehner? You’re a worthless, gutless turd.


29 posted on 05/10/2011 6:39:54 AM PDT by jpl
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To: DEADROCK

Bonehead demands Trillions in cuts.
But the truth is Bonehead and Cantor will fold like a cheap suit. They both have a history of folding.

They demand trillions but will settle for 50 or 60 billion.


30 posted on 05/10/2011 6:48:57 AM PDT by tennmountainman
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To: Kaslin

I’ve written several scathing article about Boehner in American Thinker, so I am no fan of his. Having said that, he does seem to have had an epiphany on this issue by decoupling the term default and the debt ceiling. THIS IS VERY KEY.

This is a key acknowledgement on his part. It just amazes me that so many commenters clamor for Boehner to get a clue, and the moment he does, they all write him off. I would hope that this kind of change is what you’ve been looking for with all the negative (and deserved) commentary up to now.

Look, I know he may disappoint again - but his statement yesterday seemed to be a huge change in his stance on this issue. In the 90’s he was a good congressman. He went Washingtonian on us and has disappointed as speaker for sure. But maybe he’s getting the message.


31 posted on 05/10/2011 6:52:28 AM PDT by C. Edmund Wright (American Thinker Columnist / Rush ghost contributor)
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To: All

I wonder if he is over the awe of being elected to the speakership.

It would be nice if there were a character in that position who is not surprised by his own election to that powerful position, and who wears the cloak of authority lightly, instead of one who, apparently, scarcely believes that he is worthy and is weighed down with the heavy cloak of responsibility.

I would not be afraid of negotiating with someone who is uncertain that he should be the negotiator. I think I would win every time.

Put someone in there who knows that he or she deserves the job.


32 posted on 05/10/2011 6:56:28 AM PDT by LachlanMinnesota (Which are you? A producer, a looter, or a moocher of wealth?)
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To: Kaslin

Crybaby Boehner did not do shit.
He, as with most of the big government RINOs, will fold like wet paper.... =.=


33 posted on 05/10/2011 7:00:33 AM PDT by cranked
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To: C. Edmund Wright
... his statement yesterday seemed to be a huge change in his stance on this issue...

Maybe.

But I'm reminded of that old saw from another spine-challenged GOPer who consistently folds winning or principled hands so he can get along with his Good Friends Across The Aisle; "Don't count your Hatch until he chickens!!"

I fear Boehner will fold this winning and princiled hand too. He's done it before when the media and the Democrats (but, I repeat myself) put the high pressure on.

If you think you have already seen weeping, wailing and gnashing of teeth hysteria over this "catastrophic event which will destroy the country", you ain't seen nuthin' yet. The AMEN! Choir is just getting warmed up!

Boehner can stop this runaway train in it's tracks. He's the only one who can do it. Chances are, he won't. This is the last opportunity to save us from fiscal disaster - but I'll bet the farm he caves to some meaningless "compromise" and the Democrats will end up giving each other high fives again.

I've seen this act before...

34 posted on 05/10/2011 7:54:47 AM PDT by Gritty (John Boehner has basically climbed into the Bob Dole suit - Mark Steyn)
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To: Kaslin

Larry Kudlow is an idiot. If you raise the debt ceiling by $2trillion and cut spending $2trillion you have basically done nothing. Its a wash and we are still spending the same amount as we were last year.

The Congress of the United States needs to cut the size of government and stop spending money. They absolutely will not do it. Boehner is not going to get any substantive decrease in our runaway spending. Prepare for disappointment. And then prepare for economic collapse.


35 posted on 05/10/2011 8:11:44 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: G Larry

He laid down the gauntlet and at the appropriate time will pick it up himself and beat himself into an even more senseless state.

What is the only entity that has surrendered before or after one shot fired than the French military? The RINO infested GOP...


36 posted on 05/10/2011 8:19:32 AM PDT by sarge83
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To: Kaslin
The Zippy and Reid will get him over at the whitehouse and he will fold,instead of telling them go to hell, you are NOT getting anything!

We need to let Bachmann do the negotiating.

37 posted on 05/10/2011 8:24:29 AM PDT by Cheetahcat ( November 4 2008 ,A date which will live in Infamy.)
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To: Kaslin

I am going to take this a step further,we have a Damn Orange weakling for Speaker,the result will be NOTHING, but business as usual,Plus we will lose the house (Pelosi back)and that Armani wrapped Primate will get four more years of wielding destruction on our country.

All because the Weeper can’t do his JOB!!


38 posted on 05/10/2011 8:41:21 AM PDT by Cheetahcat ( November 4 2008 ,A date which will live in Infamy.)
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To: Kaslin
Unfortunately it seems to be ignored by some here because of the hatred they have for John Boehner

Not hatred. Contempt.

39 posted on 05/10/2011 9:07:05 AM PDT by surely_you_jest (Obama has scars going over halfway around the back of his head. What's up with that?)
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To: surely_you_jest

Same thing


40 posted on 05/10/2011 9:23:20 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin
Boehner? Gauntlet? ROTFLMAOPIMP!!!

One of Lindsey Graham's lace hankies, perhaps; but gauntlet? LOLOL!

41 posted on 05/10/2011 9:26:34 AM PDT by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: Kaslin
Boehner should be pushing for one thing above all in this negotiation. The debt-ceiling legislation must be tied to approval by Congress of a Constitutional limit on the debt ceiling. If would still require approval by the states to be effective, but getting it passed Congress would be the toughest hurdle.

Set the new debt limit reasonably, perhaps two trillion above where it is now to give some time to reduce. But make it so that Congress can't raise that ceiling in the future on it's own. I'd prefer that to some cuts that likely will be temporary at best anyway.

42 posted on 05/10/2011 9:28:15 AM PDT by Bruce Campbells Chin
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To: who knows what evil?
One of Lindsey Graham's lace hankies

You sure it was a *lace hankie*?..........Just asking :^)

43 posted on 05/10/2011 9:34:02 AM PDT by The Cajun (Palin, Bachmann, Free Republic, Mark Levin, Rush, Hannity......Nuff said.)
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Calling for Donors!


Give what you can
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44 posted on 05/10/2011 9:46:19 AM PDT by TheOldLady
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To: The Cajun
You sure it was a *lace hankie*?..........Just asking :^)?

LOLOL! John will be soooooo jealous...

45 posted on 05/10/2011 9:48:30 AM PDT by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: C. Edmund Wright

The change I’m looking for is for Boehner to say NO, and walk out.

It was good enough for Reagan.


46 posted on 05/12/2011 12:10:07 AM PDT by Lauren BaRecall (Boehner, you B@st@rd!)
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To: Gritty

I agree with you, but what I want to know is where in the hell are the Freshmen?


47 posted on 05/12/2011 12:18:19 AM PDT by Lauren BaRecall (Boehner, you B@st@rd!)
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