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Parties to battle over deficit cuts
politico.com ^ | 11-2-10 | CARRIE BUDOFF BROWN

Posted on 11/02/2010 1:04:34 PM PDT by NoLibZone

After an election season marked by shrink-the-debt rallying cries, a Republican majority in the House would quickly have a chance to show whether it’s serious about cutting federal spending — so serious, it would threaten to shut down the government.

House Republican leaders insist the party wouldn’t take it that far. But tell that to a crop of tea party candidates who say they’re prepared to take that dramatic step, if needed, to stick by their campaign-trail pledges to rein in government spending.

The showdown could come after the next Congress convenes, when Republicans and Democrats would take up a routine Treasury request to increase the amount the federal government can borrow, known as the debt limit.

It has all the makings of a classic Washington standoff: President Barack Obama would have to persuade Congress to expand the borrowing limit, or risk a government default. Republicans, who pledged fiscal restraint, say they wouldn’t go along with it unless they extract major concessions on spending. And tea party activists would expect nothing less than full-on resistance — maybe even a government shutdown — from the Republicans they propelled into office.

Republicans across the country used TV ads to bash Democratic incumbents for raising the debt limit in February, from $12.4 trillion to $14.3 trillion. The debt now stands at $13.7 trillion, which means another vote will be necessary early next year, when there would be a GOP House majority if results go as expected Tuesday.

Utah Republican Senate nominee Mike Lee has said that the issue is worth shutting down the government over. “It’s an inconvenience, it would be frustrating to many, many people and it’s not a great thing.” And “at the same time, it’s not something that we can rule out,” he told NPR. “It may be absolutely necessary.”

In statements to POLITICO, Colorado Republican Senate nominee Ken Buck and Wisconsin Republican Senate nominee Ron Johnson both adopted no-compromise stances, as did Republican National Committee Chairman Michael Steele Sunday on CNN’s “State of the Union.”

“The American people have said pretty loud and clear that our debt is too high, and they are going to send people to Washington who are able to say no,” said Sarah Sendek, spokeswoman for the Johnson campaign.

Tim Phillips, president of Americans for Prosperity, a tea-party-linked group that has been active in the midterm elections, said a government shutdown may be necessary.

Read more: http://www.politico.com/news/stories/1110/44528.html#ixzz149lWETdW


TOPICS: Business/Economy; Extended News
KEYWORDS: debt; debtcieling; debtlimit

1 posted on 11/02/2010 1:04:40 PM PDT by NoLibZone
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To: NoLibZone

This is going to be very, very interesting.

I think Mr. Obama will blink.


2 posted on 11/02/2010 1:10:02 PM PDT by RexBeach ("There is no such thing as a good tax." Winston Churchill)
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To: RexBeach

I agree, it’s about time federal workers feel the pain of no pay for awhile. I don’t think zero will order Pizza and glare at aids thong panties showing. However I could be wrong on that one.


3 posted on 11/02/2010 1:14:25 PM PDT by Marty62 (Marty 60)
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To: NoLibZone

Cut baby, cut!!!


4 posted on 11/02/2010 1:19:45 PM PDT by Red Dog #1
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To: Marty62

If it works like the last time the government was shut down, all of the federal workers were paid for the lost time. Just some free vacation with pay.


5 posted on 11/02/2010 1:33:10 PM PDT by Bob Buchholz
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To: Bob Buchholz

Boy they sure have it made. Nothing ever threatens a Gov job.


6 posted on 11/02/2010 1:40:55 PM PDT by Marty62 (Marty 60)
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To: NoLibZone

There is another issue here ... it depends on whether the lame duck Congress passes the Appropriations bill this month.

They have only 2 weeks to pass anything before the Christmas break, and no legislation will be passed by the existing Congress before the new one takes office. And the Continuing Resolution only allows the agencies to spend 80% of last year’s budget.

So ... the increase in the deficit may be tied to the appropriations bill. Lots of negotiation room there (like cutting everything by 20%).


7 posted on 11/02/2010 1:46:59 PM PDT by Mack the knife
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To: NoLibZone

NPR, PBS, PP, defund obamacare, reclaim the bailout money, eliminated illegals from food stamps, welfare, housing, medical, just for starters


8 posted on 11/02/2010 3:06:08 PM PDT by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, retired Military, disabled & Seniors)
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