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This afternoon, House Majority Leader Eric Cantor (R-Va.) threw in the towel on his party's entire debt-ceiling strategy -- he effectively let the hostage go -- though he's apparently adding a challenge of sorts to his new plan.
"The first step to fixing this problem is to pass a budget that reduces spending. The House has done so, and will again. The Democratic Senate has not passed a budget in almost four years, which is unfair to hardworking taxpayers who expect more from their representatives. That ends this year.
"We must pay our bills and responsibly budget for our future. Next week, we will authorize a three month temporary debt limit increase to give the Senate and House time to pass a budget. Furthermore, if the Senate or House fails to pass a budget in that time, Members of Congress will not be paid by the American people for failing to do their job. No budget, no pay."
Let's unpack this a bit. Republicans, after months of bluster, have now given up on a debt-ceiling fight. The writing was on the wall earlier, but Cantor's statement effectively makes it official. Plenty of pundits -- you know who you are -- said President Obama would cave in this fight, but those predictions were wrong. Obama drew a line in the sand, and this time, well ahead of an actual crisis point, the GOP backed down.
But what about this talk about the Senate and the budget? Cantor's charge that "the Democratic Senate has not passed a budget in almost four years" isn't actually true, and it's been debunked many, many times. Regardless, it's not altogether clear what the House Majority Leader thinks would happen if there isn't a budget agreement -- Republicans will still have to raise the debt ceiling again, and they've already assured the public that default is off the table.
For that matter, Cantor's new plan suggests lawmakers won't get paid unless they pass a budget. This isn't just incorrect; it's plainly unconstitutional.
As for passing a three-month debt-ceiling increase, this is a bad idea that fails to do Republicans any favors.
As we talked about yesterday, these debt-ceiling showdowns aren't helpful to anyone, anywhere. Having one per year is dangerous -- why anyone would consider it prudent to have two over the course of a few months is a mystery.
As for the politics, now that both sides agree that default isn't a credible option, planning a three-month increase only puts House Republicans in the position of casting an unpopular vote more than once -- and in this case, probably ignoring the "Hastert Rule" more than once, too.
It'd be vastly smarter for the GOP to shift this authority to the executive branch altogether, especially if Republicans now realize there's no utility in threatening to trash the full faith and credit of the country on purpose.
That said, putting all of that aside, Republicans giving up is a huge development. Take a look, for example, at what happened to the so-called "panic index" after Cantor's announcement.
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I had been wondering if I should plan to travel by air in early March. Now that is looking like good timing before the impending partial government shutdown.
I am glad to see the congressional Republicans back off. The proper time for a budget fight is during the budgeting process.
Stupid, stupid idea.
Someone please explain to me how the fight over the debt-ceiling helps create jobs.
The solution to the deficit / debt problem starts with Jobs, Jobs, Jobs.
Jobs help the lower and middle class, and hurt the bottom line of corporations, who long ago figured out that they can throw more money to their upper management if they demand more productivity from less workers for the same pay. The GOP is loathe to attack actual jobs legislation because it would bring to light the "f**k you, I've got mine" mentality of themselves and their corporate sponsors.
Thats it in a nutshell . They actually like them some high unemployment numbers. peons scrambling for work .
Engineer with a masters degree. Why shore, come on down we gots' lots of openins' at $11.25 an hour
Come on guys just say it. You want unlimited spending. There is no amount too large to borrow, because you're never going to pay it back anyway. Spend, spend, spend!
(But just not for the little folks, they wouldn't spend it right)
Impressive jump, Shooter, from jobs legislation to spending. It's almost like you know your side is complicit in the ongoing jobs dilemma, and you're desperate to derail the conversation to another topic.
Oh, and by the way, which president was it that cut revenue and added two wars to the credit card, hiding them off-budget and borrowing to beat the band to pay for them? Last name starts with a B... It's on the tip of my tongue! Oh well, I'm sure you recall.
Businesses deserve better than the uncertainty of a short-term debt limit extension, Mr. Cantor.
Why do Republicans want to hurt the business community?
I agree. And businesses, government agencies, and the American people deserve better than the uncertainty of continuing resolutions to fund our government. So, create and pass an annual budget.
Why don't the Democrats in the Senate want to pass a budget? (Not one has voted in favor of Obama's budget proposal.)
It's not up to the Senate to intitiate the budget. The constitution states what the budget process. Boehner just wants to avoid a fight with his caucus. He just wants to avoid doing what he's paid to do.
The Republicans don't want a budget. They like the "spending appropriations" so they can make cuts where they want. They've done it for the last 4 years. A little here, a little there. And with a 3 month "extention" they can hold hostages every 3 months instead of once a year.
larry, you are incorrect. The constitution does not state what the budget process should be...the Congressional Budget Act of 1974 does. And, that process starts with the President. The Senate has not passed a budget, the House has.
Your last paragraph is just as incorrect as your first.
The Senate cannot pass a budget with the Senate Republicans filibustering at every turn. Watch what happens when the filibuster is ended...
ALL spending bills must originate in the U.S. House of Represtatives. The budget is a spending bill. The President cannot write a bill. The President must send the U.S. House a written budget proposal by the 14th of Feb. This is NOT a budget, but a proposed budget. The U.S. House must agree to and pass any and all spending. It's not the President that spends. He can't. It's congress. Conress has approved every damn dime the President has spent.
Neil, the budget does not need 60 votes to pass the Senate, it can pass with a simple majority, which the Democrats have. The minority filibuster is not a barrier to the vote on the budget.
Larry, you are incorrect again. First, spending bills do not have to originate in the House, revenue generating bills do. The President sends his budget proposal to both the House AND the Senate. The budget process is designed to be done by both the House and the Senate, and approved by both house. The Republican led House produced a budget last year, the Democratic led Senate did not or the year before that or ...
If I am wrong, please show where "spending" bills must originate in the House. Please show me the part of the Constitution that "states the budget process." Prove me wrong.
It takes 60 votes to get a bill, of any kind, to the floor. 60 votes to break the GOP filibusters. Even you should know that.
Larry the Senate only needs 51 on budget matters. Get out of the basement, refill the Cheetos bowl, and take a break.
Shooter, I've had several decent conversations with Larry before, why he doesn't want to see or admit he is mistaken on this, I don't know. He just wants to TELL us he's right, no source, no back up.
One last time, Larry, you are in good company because White House Chief of Staff (former director of the Office of Management and Budget) got it wrong too. Here's a quote from the ABC News posting:
The House GOP is running out of fresh areas of foot in which to shoot themselves...
"Republicans, after months of bluster, have now given up on a debt-ceiling fight."
1) The GOTP's corporate sponsors called and said they wouldn't get their new ponies if they screwed up again - hence the cave.
2) The "3 month extension" is meant to force democrats to "cave" on cuts to social programs.
3) Cantor is an obtuse, arrogant little pr--k, that felt the need to let everyone see him "flex his muscle".
4) Maybe it's time for the GOTP to actually read the Budget that the President sent them a couple of years back that they never READ before.
Who will give the GOTP a real reality check - if WE the PEOPLE could stop them from getting paid - many of them would have left Congress years ago!
Ah, c'mon, you gotta give the little putz credit for his never-ending campaign to put the lie to the ancient anti-Semitic slur that all Jews are really smart.
My prediction is that if Republicans keep creating hostage situations, public opinion is going to sweep them out of office in 2014. Constant political instability will create business planning/investment instability. The business community has turned on the Republicans strategy and pursuing it again every three months is not going to change the situation. In fact, it will make it worse for Republicans because Obama will keep saying no. How many times will the Republicans be forced to back down before they begin to lose face with their base?
My first reaction is: keep up the pressure!
Now is not the time to let up. The idea of putting it off for three months is stupid.
Secondly, thanks very much for the information and links about the "they haven't passed a budget" talking point. I've heard this over and over from the conservatives.
My thoughts, too. They would love to draw Obama into "negotiations" with this ruse. I hope he doesn't fall for it, but...
...these debt-ceiling showdowns aren't helpful to anyone,
Oh, I don't know about that.
Now that the GOP is getting better at recognizing reality, they caved on the debt ceiling. They'll cave again. Their bluff has been called, and they folded. Three months from now is the perfect time to remind voters why the GOP sucks.
Wanna do it every three months from now unitl 11/14? Go for it. It helps the Dems.
And "No budget, no pay"? They've tried versions of this, where they pass something last minute, and walk out, expecting the Senate to fall in line. That did not work out for them. If the House passes something, and the Senate "amends" it by stripping it and replacing it with their own version, how does that work?
I am not sure on the budget, but if this is like anyother piece of legislation the amended bill goes to conference and the conference committee works something out.
Right-I meant to finish that by saying that it goes back for reconciliation. Or whatever nonsense the House comes up with after that.
No one can say the GOP doesn't love a gimmick. And does anyone really think Republicans will follow through on not paying themselves? That would be a cold day in hell.
The Republicans are trying to manipulate the political situation to blame the Senate Dems if the debt ceiling is not raised after three months. It won't work because the House has to pass a budget first as required by the Constitution. And that means Republicans are going to have to specify what programs are going to get cut. The Republican strategy was to put the onus of which programs get cut on the Dems. Ryan budget again? Slash Medicaid, repeal Obamacare and Coupon Medicare redux?
Nope, this is incorrect. You may be getting the budget confused with bills for raising revenue, which must originate in the House. The rest of your argument is reveresed, it is the Democrats who do not want a budget. The House has passed budgets, the Senate has passed one during the Obama administration.
A budget bill includes expenditures and revenues, not just projected revenues. It is up to the House to include proposed legislation that provides increases in revenues and which ones as well as how much. Therefore, the House must pass a budget first. Republicans are standing by the Ryan budget and that has been rejected by the Senate and by the voters. Now the House must come up with a new budget in its new session. That means passing the Ryan budget again or a new one for the Senate to act on. Republicans do not want to pass another budget that has been rejected by voters and the Republicans want Dems to specify the budget cuts in entitlements. The Dems have already said no in the last session and I suspect the answer will be the same. If Republicans want entitlements cut, then they will have to come up with more revenue. Dems have stated that all new revenue is not going to come from the middle class on top of entitlement cuts. There is an impasse because Republicans have said no more tax increases from the people who have the money to pay more taxes, the wealthy.
Mike, the budget process is different than ordinary law making process. Here's a couple of links to the explination, the budget bill does NOT have to originate in the House. The Senate can create and pass its own budget bill.
Where are all the posters who jump on me when you think I've said something incorrect?
The reason the Senate has not passed a budget is that the house will not pass Obama's budget. They insist on sending to the Senate the Ryan Budget which the Democrats and most of the country will not support and Obama will not sign.
If the House would pass a budget that the Democrats can support, they would no doubt pass it.
GOP=laughingstock.
No Democrat voting for Obama's budget so lets not do a budget = laughingstock
@RobDon, the vote on the Prez budget was yet another instance of GOP political theater. Do you really think we don't know that? Come on.
WaPo, May 16, 2012:
Senate Majority Leader Harry M. Reid (D-Nev.) accused Republicans of developing a “case of amnesia,” forgetting the legally binding budget deal brokered last summer as they claim the Senate has no budget.
“Republicans aren’t interested in getting anything done this year – they’re more interested in trying to defeat President Obama. So they don’t mind wasting a day of the Senate’s time on useless political show votes,” he said.
I will not deny that political theater was involved. But, so is the Senate's unwillingness to develop and pass a budget. The Senate is suppose to present a budget to the body by April 1st of each year, Reid has not done so the pass few years. And this is for Democratic political reasons.
3 month extension and then they do it all over again?
The guy is stupidly trying to save face .
This was bull@!$%# when they did it in December and Obama let them. It's double bull@!$%# now. And in March, more bull@!$%#.
Excuse my lanquage but this silliness in the face of other actually critical issues is pissing me off.
Does anyone remember the last time we discussed climate change, jobs, Big Oil pollution, US infrastructure, or anything that USED to be frickin important?
Are those who want the debt ceiling raised with no strings attached really against Congress and the President creating and passing a budget????
A budget would give credence to the argument that the debt ceiling is not about cutting spending it is about paying the bills already due. So, do a budget!
As somebody whose salary is tied to government contracts I can assure you I am sick to death of CRs. I want a budget. So does everybody who works for a government contractor. We can't really make appropriate plans without a budget.
You should have checked the links before you posted that :
But here are two things Republicans don't mention about this 1000 days teapot tempest: First, Budget resolutions don't have the force of law, and they aren't the legislative tool that mandates what the government can and can not spend. That's what appropriations bills are for, and for the last 1000 days Democrats and Republicans have worked together, however acrimoniously, to devise spending plans for the government.
nyliberal, what is your point? There has been no budget and there are negative consequences to not having a budget.
Why do the republicans want to keep the business community rocked back on their heels by extending the debt limit for only three months? Because the uncertainty keeps buisness' from hiring. And that is what the republicans are after. Hiring might rev up the economy, and that might help the President and Democrats.
The same "uncertainty" makes our government ineffiecent and unable to conduct the people's business. This report details some of the affects a lack of budget has on government agencies.
Their leash-holders know the game plan. It's the constituents who are kept in the dark.
Instead of stomping his feet maybe Eric should make a phone call to the Senate leadership and discuss a budget both sides can approve.
I am tired of legislating as dinner theater. I think the American people are as well.
But...... the uncertainty!!!
Republicans haven't been waging any "fight". What they've been doing is wasting time with what was an insignificant issue under every other president.
They've wasted time with it in 2011, they wasted time with it in 2012, they've wasted time with it in January 2013. Now they're kicking the can 3 months down the road so they can waste more time with it in March.
They play their game to the 11th hour and then grandly capitulate. They do it every time but only after a gale of tough talk, a lot of Sunday show mileage, dregs of meaningless media coverage designed to keep Americans on edge, and in the end, what does all their "fight" boil down to? Nothing. Just using an insignificant issue to waste time.
O.M.G.
Not for nothing, if the House hadn't kept up a constant three-ring circus of the WH having to careen from unnecessary negotiation to unnecessary negotiation, it certainly would have made crafting an actual budget a possibility. As it is, to this observer, the GOP has reveled in creating constant chaos and obstruction, and then delighted in complaining that nothing's getting done.
The three month thing, unless they are somewhat close(for real) in negotiations is silly and bad for the economy and the pay thing is a stupid political stunt.
Its now official, the Republicans are completely devoid of leadership and cannot mount a viable strategy to deal with this or any other problem. Foot meet can---down the road ya go. All the democrats and the President have to do is sit back and watch them paint themselves into another corner. These guys are literally TOO STUPID to lead their own party, let alone America. If they are serious about cutting spending let them say where, how much, and when. Petty little political cowards that they are they cannot even bring themselves to put forth a program of doable spending cuts. Doable, not pie n the sky. Pathetic. 2014 can't come quick enough.
The hostage can just go home for a few months? Novel
Taking tips from Algeria, Iran, et al, this is Hostage Taking (HT):
HT: Round 2, Revision 1 - The object of the game is to use as much delaying time as possible. This particular goal post has had wheels added to it to make it easier to move down the road, and is decorated with various colorfully painted cans containing noisemakers emitting biological based soundsm as they are kicked down the road.
Not sure yet, but the next revision, 2 with be a tag bag shaped piñata, containing scarab beetles, termites and carpenter ants, genetically engineered to hollow out government, reduce house to rubble, and to ruin the replacement limber needed to rebuild the country.
Rachel, I am a committed fan and I hope you're not one of the subjects of this rant; IT BLOWS MY MIND THAT MOST OF THE REST OF THE "MAINSTREAM MEDIA" HAVE FAILED TO DO ANY HOMEWORK, LET ALONE COMMON SENSE THINKING, ABOUT THE SO-CALLED "DEBT LIMIT DEBATE." Eric Cantor must know this and probably does! Any one of these educated idiots should have known that CONGRESS is the only body allowed to spend money. The president can ONLY spend what Congress authorizes! Take a look at the recent Sandy relief bill: a sizeable chunk of the $50 billion plus was earmarked for items unrelated to Sandy victims' relief! JOURNALISTS OF ALL STRIPES: pull your collective heads out and do some research before you engage your "opinions."
We need to demand these underworked, do-nothing malingerers return their slaries to the Treasury. The biggest problem is the leadership, Boehner and Cantor. For what they've accompplished, it's shameful taking the $200K salaries they get, not to mention the health benefits. etc. Afterall, Cantor was one who met to deny Obama any success in his 1st term agenda, to the detriment of the country. A strategy to sink a President, that still continues,now attempting to sink the economy and country, over what, cutting entitlements to hurt the middle and poor in order to benefit those who donate and would donate to his re-election? . We know it's all about money and greed, not governing. What a display of cowardice, hardly that of leadership....
STEVE BENEN! STOP the "HOSTAGE" CRAP!!!! When will the Democrats, who control 2/3 of the legislative and executive branches, step up to the plate and DO SOMETHING?? It's tiring to see the House blamed for everything. The DEMS held all 3 groups for two years, starting in early 2009 and accomplished next to ZERO, which is why the country remains stuck in this horrible recession. Still, they have held 2/3 for the past two years and will for the next two years. Stop whining and govern!!
Sent to Harry Reid:
http://www.kraftbrands.com/philly/Pages/default.aspx
Cream Cheese (?), ....
Or True, "Filibuster Reform".
.... $ A "watered down" reform, is not going to "Pass", Harry.
(Get it "Right". .. ?)
There's still .................... Time.
— Fighting the Filibuster
The need for filibuster reform in the U.S. Senate is discussed with Larry Cohen, Communications Workers of America.
http://billmoyers.com/episode/full-show-fighting-for-filibuster-reform/
I bet i need more of Ed Butowsky knowledge but how come that government had been spending much? As far as i know overspending had been happening all along even from the past terms.