Stocks fell today amid concerns that the White House and Congress will miss the August 2nd deadline to reach an agreement on raising the debt ceiling. One Republican Congressman considers it a political deadline.
Republican Congressman Darrell Issa of Temecula says this country should immediately raise the debt ceiling. "America’s never bounced a check. We’ve authorized spending through the end of Sept. We should raise the debt limit through the end of September."
There is a caveat: Issa wants the White House to adopt the 2012 budget the House passed. "We should not be having a discussion with a artificial deadline of August 2nd, set by the President so the President can extort a deal through his reelection period. That’s not right, it’s not what the American people expect us to do."
Not a single Democrat voted for the House budget last April. The Senate voted it down a month later. Neither side has reached a compromise in two months of negotiations. The Senate says it will meet every day, including weekends, until it achieves a budget agreement.
The House of Representatives is likely to vote tomorrow on a debt ceiling bill. The GOP measure would allow the federal Treasury to borrow an additional $2.5 trillion. In exchange the bill would cut nearly $2 trillion from non-defense spending and would require a 2/3 vote to raise taxes.
House minority leader Nancy Pelosi labeled the measure “outrageous.” Long Beach Democrat Laura Richardson says she draws the line at any deal that touches cost of living adjustments, known as “colas” in Social Security.
"It would be one thing if everyone was putting in," she said. "But if they’re not even willing to tax people who are making over $250,000, and a reasonable cut to defense, no way. Our seniors have already paid and they’ve been paying and a further cut to them, the people who haven’t received COLA in three years. This is not right."
The Democratically-controlled Senate doesn’t expect to approve this so-called “cut and cap” legislation. Today, the White House threatened to veto it.