Senate Republicans offer compromise to debt ceiling impasse
July 12th, 2011
03:03 PM ET
3 years ago

Senate Republicans offer compromise to debt ceiling impasse

Washington (CNN) – Senate Republicans offered a politically inspired fallback option to the debt ceiling impasse Tuesday, proposing three short-term increases in the amount the government can borrow while at the same time registering the disapproval of Congress for such a move.

The proposal is certain to be rejected by President Barack Obama and Democrats. Obama said Monday he would reject any short-term extension of the debt ceiling.

Senate Minority Leader Mitch McConnell, R-Kentucky, told reporters that the process he described would only occur if no agreement is reached by August 2 to raise the federal debt ceiling to avoid government default.

"If we're unable to come together, we think it's extremely important that the country reassure the markets that default is not an option," McConnell said.

However, Republican senators briefed on the plan described it as more of political messaging device than a viable option to avoid default.


Filed under: Debt • Senate Republicans
soundoff (54 Responses)
  1. I'm a GOP HOSTAGE and SO ARE YOU

    Republicans are a WASTE OF SPACE.

    GOP: cut the BS, stop playing games with the global economy, stop threatening Americans, JUST STOP!!!!

    People, we must rally around the Democrats the next year as the GOP pulls out all the stops to bring this country down so they can blame the President. GO OBAMA! WE'VE GOT YOUR BACK!

    July 12, 2011 03:07 pm at 3:07 pm |
  2. Busted2010

    Here's a solution, cut farm spending, military spending (contracts) and coal subsidies to Kentucky. Ohhhhh wait, when we said job killing deficits we weren't talking about subsidies that benefit republican states... Don't you people get it!!!!

    July 12, 2011 03:09 pm at 3:09 pm |
  3. Jack

    Republicans finally figuring out that this is more than a poltical football. I would like to think so, but the last 3 years show that their selfish politicing knows no bounds.

    July 12, 2011 03:10 pm at 3:10 pm |
  4. Liberal elite=anyone with an education

    So basically, the President is offering solutions, and the Teapublicans are offering political theater. Why anbody still buys the GOPs snake oil sales pitch is beyond me...

    July 12, 2011 03:13 pm at 3:13 pm |
  5. GI Joe

    They KNOW we blame the tea-party/republicans. They just want to drag it out and beat it to death. It's an old game they've been playing since the HELL NO CAUCUS took over.

    July 12, 2011 03:15 pm at 3:15 pm |
  6. Charles

    Soo...Republican leaders themselves don't even think it's a viable option, but they have to look like they're doing something. Even though they really aren't. Enough already. Stop with the politics, and stop with the "Party First" mentality. Remember why you got elected? To represent the people. Try thinking about them for a change. Both parties.

    July 12, 2011 03:16 pm at 3:16 pm |
  7. a in austin

    Quit kicking the can down the road – earn your paycheck and get the job completed with compromise from both sides.

    July 12, 2011 03:16 pm at 3:16 pm |
  8. Sniffit

    Aaaaand, the GOP just blinked. Rope starting to feel a little tight, guys? C'mon now...you can do it....we'll even give you strained peas so it's easier to swallow.

    July 12, 2011 03:18 pm at 3:18 pm |
  9. me

    So the senate republicans want to put in an automatic swith just in case that they can't swindle the democrats and so they can't be blamed for a default because it won't happen with the switch.... smart politically but just compromise now..

    July 12, 2011 03:18 pm at 3:18 pm |
  10. Realistic

    republicans are Idiots. Raise the debt limit now and than go back to trying to cut and raise revenues. This way no default would happen and.....Oh wait.......Republicans want it their way or no way, another gimmick offered by republicasn to avoid doing the hard work and making tough choices. yes, republicans want to protect their rich buddies while shafting everyone else...

    July 12, 2011 03:19 pm at 3:19 pm |
  11. Doctor Strangelove

    How I Learned To Stop Worrying And Love The Bomb.
    With the amount of Trust I earned for this country, the GOP is still bent on having the middle class and poor pay for "Corporate" excess? The GOP are absolutely reckless in diminishing the value of that hard won Trust. GOD is fair. Thus, since Corporations [who operate off of the seven deadly sins] got us into this mess; it is only fair that they clean it up by paying their bill.

    GE paid no taxes this year. That is because GE, THE GOP, and BIG OIL WROTE THE TAX CODES. They are just as adorable as those three little pigs in Orwell's "Animal Farm." I would like to take them down abandoned mine shafts to have them "slaughtered."
    How ironic, now, those three little pigs are sitting at the dining room table calculating how to carve up the ham.

    July 12, 2011 03:20 pm at 3:20 pm |
  12. John

    Why don't you Republican just rise the TAXES on the rich .They won't even start until 2013. You Republican can't have everything your way. You are losing vote the longer this go on. That Pledge you Republican sign should be against the LAW. Because you all ready swear to a OATH WHEN YOU TOOK OFFICE. And that OATH say you would do the BEST job you could for America best Interest. Letting America default on the dept and America will Have to pay higher INTEREST and A lot of people will not be pay. 100% of these people you will stop getting pay will lose there homes and will have no money to eat on and there kids. It time to stop worrying about this pledge you Republican have sign and start worrying about the OATH you all took when you took Office. And It time to get a deal done now American people are feed up with this last min. CRAP.

    July 12, 2011 03:22 pm at 3:22 pm |
  13. sonny chapman

    Repubs. complain that Govt. should be run like a business. Is this any way to run a multi-trillion dollar business ?

    July 12, 2011 03:23 pm at 3:23 pm |
  14. king

    aaaghh these repugs are something else. theyve screamed bloody murder ever since they took over the congress last election about the debt ceiling, social issues and taking away rights from folks, (even though they ran on jobs jobs jobs), at the same time reading the constitution every day. when will these folks see the real repugs for who they are. theyre mission is none of the above. their mission is to use the most gullible in society, stir their emotions with lies and start a new world order. that is america globalization, WELCOME TO THE NEW WORLD ORDER FOLKS. First they scream about capitalism, telling the most gullible that capitalism is all about supply and taxes. when i remember hearing that capitalism was all about supply and demand. we the people spend money to the supply up on top, they in tern create jobs to handle the demand gains. the problem is instead of the jobs come down from top when demands goes up. " the trickle down economics" the jobs are going side ways over seas because these companies are not investing in america anymore as they should. this is depleting our revenues badly and the tax cuts are even outsourcing even more money. so when the repugs say we are broke, guest what they are telling the truth. weve got to stop the trickle side way economic crap by the repugs to save our country. the repugs will never say nothing about demand, because their big corporate bosses doesnt really need american demand. theyre getting way more demand over seas. look at their bottom lines. the problem is small businesses do need our demand power because they dont have the luxury to go over seas. they hires 75 pecent of american workers while big corporations hires 25. but the repugs are using small businesses as a cushion to get tax cut for big corporations.

    July 12, 2011 03:26 pm at 3:26 pm |
  15. RWB1956

    More crappa-rappa to make President Obama the fall guy. Sad.

    July 12, 2011 03:26 pm at 3:26 pm |
  16. Al-NY,NY

    Nope. Start compromising like you said you want to. "Taxes are off the table" is NOT compromising

    July 12, 2011 03:26 pm at 3:26 pm |
  17. Anthony

    Republicans need to work on their political messaging. Their political messaging on the Ryan plan was a disaster. However, if they think they had a rough time getting their message out on the Ryan plan, wait until the voters find out that the "wasteful spending" that Republicans want to cut in the debt ceiling fight is the entitlements, otherwise known as Social Security, Medicare, and Medicaid. Republicans had it easy with the Ryan plan. After all, that plan would only kill- I meant replace Medicare.

    July 12, 2011 03:30 pm at 3:30 pm |
  18. ConservaFASCISTS/Domestic Terrorists/Taliban/Al Queda/TRAITORS

    What part of no short term resolution don't these idiots get???

    July 12, 2011 03:32 pm at 3:32 pm |
  19. Rudy NYC

    Senate Minority Leader Mitch McConnell, R-Kentucky, told reporters that the process he described would only occur if no agreement is reached by August 2 to raise the federal debt ceiling to avoid government default.
    --------------
    How convenient. Sound familiar? Remember the lack of productivity as Congress haggled over a string of short term bills to fund the government for a couple of weeks at time earlier this year.

    July 12, 2011 03:33 pm at 3:33 pm |
  20. Sniffit

    More details:

    McConnell proposed allowing the president to demand up to $2.4 trillion in new borrowing authority by the summer of next year in three separate submissions. [All of which would be demagogued and attacked with Crossroads GPS ads]

    Those increases in the so-called debt limit would automatically take effect unless both the Republican-controlled House and the Democratic Senate enact legislation specifically disapproving it. [Queue lamentations of Obama's dicatorship]

    Obama would be able to veto such legislation. [Did I say dictatorship? I meant imperial decree]

    it would require that Obama submit spending cuts along with his borrowing requests. But unlike the increase in the debt limit, they wouldn't automatically take effect. [Queue GOP refusing to enact the proposed spending cuts and claiming that Obama is not serious about cutting spending]

    We're going to get a clean debt ceiling bill if the Dems just stay strong. Clearly, McConnell just tipped the GOP's hand that they've got nothing left other than hoping they can sell Obama and the Dems a bill of goods that allows the GOP to run around screaming and pulling their hair out that the Dems are on a continued spending binge. Obama offered these fools an 80%-20% split on cuts to revenue increases and they still wouldn't take it. The reality is, they're not serious about ANYTHING, let alone fixing the budget...they just want to protect the tax cuts for the wealthy and exacerbate them with cuts to programs that are ESSENTIAL to the middle-class and poor as a result of the greed exhibitted and enacted by the wealthy and corporations over the past several decades. Now watch as the GOP makes this offer and then throws it's hands up and walks away from the table, pretending that THIS is the only thing that Obama can accept (i.e., they're still going to say "our way or no way").

    July 12, 2011 03:34 pm at 3:34 pm |
  21. Rudy NYC

    It looks like this is going to come down to a fiat by the President to uphold the 14th Amendment. This bill is just a proposal to undermine any effort by the President to act unilaterally when Congress can not.
    This Senate bill is totally meaningless because without being voted on and passed by the House, which we all now will never happen. Too many Tea Party members have sworn not to raise the debt ceiling, not under any circumstance.

    July 12, 2011 03:37 pm at 3:37 pm |
  22. Tony Z

    Another LOL moment from the folks that put us in this mess. Please provide the number of jobs the folks who are going to be taxed will create. If these jobs are not created than lets require them to pay a fee. Lets call it the Republican Hoodwink Fee.

    July 12, 2011 03:38 pm at 3:38 pm |
  23. Let's get rational now

    "Senate Minority Leader Mitch McConnell, R-Kentucky, told reporters that the process he described would only occur if no agreement is reached by August 2 to raise the federal debt ceiling to avoid government default."

    Has McConnell gotten this approved by Norquist (the master of his leash) and the tea party (the maker of the leash)? Has he checked with Cantor and his boys and girls in the House (notice I didn't say Boehner; No one believes he is in charge anymore)? These short term fixes have about as much chance of passing as me selling the empire state building.

    One of the problems that Obama has in this situation is that he is negotiating with a lot of people that are not at the table. The trouble is he can't get them to the table and he can't clear them from the table. He is just screwed.

    July 12, 2011 03:40 pm at 3:40 pm |
  24. VirginiaDare

    McConnell's proposal is a perfect reflection of the sorry state of the Republican Party, which puts the economy in jeopardy while simultaneously dodging responsibility and obfuscating.

    July 12, 2011 03:41 pm at 3:41 pm |
  25. AEK

    They'd better hurry because the House Republicans are going to pass that critical, job producing piece of legislation today. You know, overturning the Bush-era light bulb energy legislation! And that, my friends, is how your Republican controlled House of Representatives is spending their time!

    July 12, 2011 03:42 pm at 3:42 pm |
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