Skip to comments.Boehner Lays Down the Debt-Ceiling Gauntlet
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: Lets say theres 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.
Thats where theres 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, its 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. Well see what happens next.
If cuts are greater than the accompanying increase in debt authority, why raise the debt ceiling?
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...
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.
>>> 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.
Maybe you would prefer Nancy Pelosi as speaker.
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.
What is he going to do demand real fake cuts this time. Are will it be more fake, fake cuts.
That’s it you need to leave the room, no common sense allowed in congress.
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?
Can't we elect anything but phonies?
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.
... 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.
Boener Lays Down
No real substance, just a theater production with Kabuki performers
Harry Reid: “Jump”!
Boehner: “How high”?
Wimpy little crybaby....
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.