GOP to vote on temporary debt ceiling hike

Departing from an earlier stance that appeared willing to see a government shutdown, Republican leaders are now looking for breathing room with an extension.

By Kim Peterson Jan 18, 2013 2:58PM
Image: Dollar bills floating over U.S. Capitol - CorbisRepublicans in the House of Representatives are moving ahead on a bill that would raise the debt ceiling for just three months, Politico reports. The proposal will come to a vote next week.

It was an expected turn of events in the ongoing drama over federal spending that has sharply divided Republicans and Democrats. The bill also has an unusual twist: It proposes to stop paying lawmakers if the House and Senate don't pass a budget.

The strategy is to shift blame to the Senate, Politico reports.

Republicans have been signaling a willingness to raise the debt ceiling to avoid sending the U.S. economy into turmoil. John Cornyn, the Republican Senate Minority whip, sounded sure about the matter Thursday when he spoke to the Houston Chronicle's editorial board. "We will raise the debt ceiling. We're not going to default on our debt," he said, according to Politico. "I will tell you unequivocally, we’re not going to default."

This seems to be in direct contrast to what Republicans were saying earlier this month. Some lawmakers appeared ready for a government shutdown if spending cuts were not approved. But big business has chimed in, saying there's no way the government should run out of cash and shut down. Even Republican leaders acknowledge a shutdown could be very damaging.

A short extension on the debt ceiling would give GOP leaders time to fight for deep spending cuts. Many cuts are slated to kick in March 1, and leaders of both parties are scrambling to pull those back in favor of better-crafted alternative plans.

The click is ticking, however, Congress must raise the $16.4 trillion debt ceiling by mid-February to early March or the government will run out of cash.

More on Money Now



15Comments
Jan 18, 2013 4:24PM
avatar
The thing I like about this vote is that Congress won't get paid if they don't agree to raise the debt ceiling. That's only postitive thing in this whole deal
Jan 18, 2013 3:42PM
avatar
Kick the can again and again and again....
Jan 18, 2013 4:08PM
avatar
I am a conservative but I can't say I am a fan of much of what the Republicans have accomplished so far, but not being paid when they don't  have a budget is something I have been a fan of for a long time.  What incentive do they have in congress to make a deal and meet in the middle if they don't face losses and we keep electing bozos.
Jan 18, 2013 4:40PM
avatar
We can't be broke, we still have checks left!!!
Jan 19, 2013 10:25AM
avatar
I'm thinking I would rather have the can kicked down the road a bit longer so that a good decision or solution can be found in the next few months.  I'm tired of all of the emergencies that come out of the White House, and there's nothing wrong with a temporary dept ceiling, at least we'll be paying our bills.  Personally, I'd like to see some fiscal responsibility, I hope that happens.
Jan 18, 2013 5:30PM
Jan 19, 2013 1:32PM
avatar

I would not say "we have emergencies,coming out of the Whitehouse." That's absurd and laughable.

 

We have a Congress and Administration...That are at odds with each other, and of little benefit to the American populace.....They MAJORITY of the problem being the Congress or House in general..

 

Surprisely at a time, of one of our "greatest needs" with Wars and Recession, that we have the constant bickering....

Sadly a mere "handful of fools", can cause such stress for a Country of 350 million. 

 

Jan 18, 2013 10:48PM
avatar

WANTED DEAD ONLY: ALL CEO's AND 1%'s

 

Do your civil and patriotic duty and exterminate a 1% today. One scumbag at a time will get the job done.

 

Exterminate the cancer named GREED!

 

REWARD: A SANER AND MORE PROSPEROUS AMERICA.

 

Thank you and God bless America!

Jan 20, 2013 1:16PM
avatar

Pretty sure the "debt ceiling" was raised 15-18 times under Bush2...So this is just somewhat absurd.

But what I'm not sure about, is what may have been or wasn't tied to the previous processes.

Jan 18, 2013 6:07PM
avatar

Of course you don`t see a real plan from the far right, they lazy and to bust protecting

the NRA.We need more assult weapons.Those 20 kids didn`t pay taxes, they are

part of the 47%.

Jan 18, 2013 3:45PM
avatar
Just gives them more time to encroach on gun owner rights. Don't Trust them. 
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The major averages finished the session on a modestly higher note, but not before heavy selling pressure sent the Nasdaq Composite (+0.3%) for a test of its 200-day moving average. The S&P 500, meanwhile, added 0.7% with all ten sectors posting gains.

Equities climbed at the open with the advance built on the relative strength of biotechnology and other momentum names. Despite the solid early gains in those areas, the market began fading from its high as multiple ... More

MSN MONEY'S