Tuesday, May 31, 2011

House sends Obama message, rejects debt increase

The U.S. House today rejected a GOP bid to increase the debt limit without any spending cuts to go along with it, in an effort designed by Republicans to put President Obama and Democrats on the political hot seat.

The bill was set up to fail by House Speaker John Boehner and his leadership team to show the need for deep spending cuts and budget changes to go along with any increase in the nation's $14.3 trillion borrowing authority.

In the end, the bill was rejected on a 97-318 vote. No Republicans voted for the measure.

The political ploy comes a day before Obama meets with the entire House GOP conference -- the first such White House get-together since Boehner's party won a record 63 seats to gain power in the 2010 elections.

"Raising the debt limit without major spending cuts and meaningful reforms would hurt our economy and destroy more jobs, adding to our debt crisis," Boehner said. The speaker has said that everything except tax increases is on the table to reduce a sea of red ink.

Treasury Secretary Timothy Geithner has said repeatedly that the nation will be in danger of default if Congress does not pass an increase in the debt limit by Aug. 2. The United States officially hit the $14.3 trillion limit earlier this month, but Geithner halted investments in two big government pension plans in order to help cash flow.

Under the measure by House Ways and Means Chairman Dave Camp, the government would have been allowed to borrow another $2.4 trillion.

House Minority Whip Steny Hoyer, D-Md., blasted Republicans before the debate began for playing games when defaulting on government loans is at risk.

"If we were adults and acting as adults, we would come together and give certainty to the markets that, 'Of course, America's going to pay its bills," said Hoyer, who planned to vote against the so-called "clean" debt limit increase.

Democrats were split on the vote: 97 lawmakers voted for the bill, while 82 members joined 236 Republicans to reject the measure. Seven Democrats voted "present," to avoid taking a stand.

Rep. Peter Welch, D-Vt., who has been trying to garner support for a "clean" debt limit increase, denounced the GOP's effort as "guaranteed to fail."

"The clock is ticking away to Aug. 2. If we fail to increase the debt limit and default, America for the first time will not be able to pay its bills," Welch said in a recent interview.

"If this (vote) has the fundamental objective to be 30-second attack ads, then members will see it for what it is," Welch said.

Separately, Vice President Biden has been working with a small group of lawmakers on a bipartisan debt deal. White House press secretary Jay Carney said before the House vote that Obama "looks forward to an agreement on deficit reduction and to the Congress doing what it must do, which is vote to raise the debt ceiling."

USA TODAY's Richard Wolf takes a look at the White House meeting between Obama and the House GOP in The Oval, scheduled for Wednesday.

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