Tags: US | Debt | Showdown

House GOP Preparing for Summer Showdown on Debt

Wednesday, 24 Apr 2013 01:58 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

WASHINGTON — Preparing for another debt showdown this summer, House Republicans advanced a bill Wednesday to protect Social Security recipients and investors in Treasury bonds if the government hits the limit of its borrowing authority.

The House Ways and Means Committee passed a bill that would exempt interest and principal payments on Treasury bonds from the statutory debt limit. It would also exempt interest payments to the Social Security trust funds.

The bill passed 22 to 14 in a straight party line vote, with Republicans in favor and Democrats opposed. The full House is expected to take up the bill sometime after Congress returns from next week's vacation. Democrats, however, are expected to block the bill in the Senate.

Republicans say the bill would avoid an unprecedented default, even if Congress and President Barack Obama can't agree on a plan to increase the government's ability to borrow.

"The whole purpose of this bill is to take default off the table," said Rep. Paul Ryan, R-Wis. "Regardless of the political hysterics in Washington, we will not default."

Democrats call the bill the "Pay China First Act," saying it prioritizes payments to foreign investors over funding important domestic programs, including benefits for veterans, soldiers, students and the elderly.

Robbed: Secret ‘Financial War’ Will Wipe Out Your Wealth, Warns Pentagon Adviser

"Where in the bill are the benefits are veterans protected? Is there language protecting Medicare payments and seniors in this bill? Do they get top billing over foreign banks?" asked Rep. Joseph Crowley, D-N.Y. "This bill will do nothing to lower our debt but it will make sure that foreign banks in Switzerland and China are paid."

In January, Congress suspended the government's borrowing limit until May 18, though Treasury officials are expected to take actions to delay a default until later this summer, perhaps in August.

If Congress can't agree on a plan to increase the debt limit, Washington could be headed for another showdown over government spending and borrowing. In July 2011, Congress took the federal government to the brink of default, and major rating agencies downgraded the federal government's credit rating for the first time.

Since then, the issue has been politically toxic. In last year's congressional elections, both Democratic and Republican challengers gleefully reported the number of times their incumbent opponents had voted to increase the debt limit, a vote that used to be routine.


© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
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
 
Email:
Retype Email:
Country
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

US Hikes Fees for Renouncing Citizenship

Sunday, 31 Aug 2014 22:22 PM

The United States has more than quadrupled the fee to renounce citizenship as record numbers of citizens file to become  . . .

Rabbi Boteach: New York Times Censored Our Anti-Radical Islam Ad

Sunday, 31 Aug 2014 22:13 PM

The New York Times has censored an advertisement taken out by the pro-Jewish group This World: The Values Network, its e . . .

Report: Doctors Bringing Joan Rivers Out of Medical Coma

Saturday, 30 Aug 2014 18:19 PM

Comedian Joan Rivers, who went into cardiac arrest at a doctor's office, was being brought out of her medically induced  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

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