Reid Says He Favors Deficit Cap in Debate Over Curbing Debt

Wednesday, 27 Apr 2011 04:49 PM


Senate Majority Leader Harry Reid said he favors setting a cap on the U.S. government’s annual budget deficits as part of a debate over raising the nation’s legal borrowing limit.

“If we’re able to cap deficits, it automatically brings down the debt,” Reid, a Nevada Democrat, said today in a conference call with reporters. “That’s the key to all of this.”

A vote to raise the ceiling on the government’s accumulated debt is the top issue for lawmakers, who return from a two-week recess next week. The Treasury Department is projecting that the government could reach the $14.3 trillion limit as soon as mid- May and could run out of options for avoiding default by early July.

Republican House and Senate leaders have said that they will demand a commitment from President Barack Obama to rein in federal spending before they agree to raising the debt.

Reid said he met with White House officials yesterday to discuss the debt debate, which he said will be far more important than the recent battle over this year’s spending that almost resulted in a government shutdown. The debt issue, he said, “deals with the full faith and credit of the government,” and Democrats are “not going to be drawing any lines in the sand” as it begins.

Reid didn’t elaborate on how caps on deficits might work, saying “there are lots of ways to do it.”

Some past budget deals have included limits on annual deficits paired with required budget changes if they aren’t met to attempt to restore fiscal balance. The 1985 Gramm-Rudman- Hollings Act set annual targets for reduced deficits over five years and required automatic spending cuts if the goals weren’t met. The act was frequently skirted, though, when administration officials charged with imposing cuts if the targets weren’t met would change economic assumptions to improve projected deficits.

© Copyright 2015 Bloomberg News. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved