Obama seeks $1.2 trillion debt ceiling increase
December 27th, 2011
02:38 PM ET
3 years ago

Obama seeks $1.2 trillion debt ceiling increase

NEW YORK (CNNMoney) - The year couldn't end without a final word about the nation's debt ceiling.

President Obama plans to ask Congress this week to raise the debt limit by $1.2 trillion, an increase that should get the government through most of next year, a Treasury department official said Tuesday. Fortunately, though, the increase should come without the fireworks the accompanied this summer's debt battle, as it comes in line with the deal struck back then. That deal authorized a phased increase of the debt ceiling by between $2.1 trillion and $2.4 trillion in total, with $400 billion of that kicking in immediately and another $500 billion coming in September.

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Filed under: Congress • Debt • Deficit • President Obama
soundoff (25 Responses)
  1. Rudy NYC

    from the article:

    ....Fortunately, though, the increase should come without the fireworks the accompanied this summer's debt battle, as it comes in line with the deal struck back then.....
    -----------
    In light of events last week, we now know that allmost all of the major clashes in Congress this year were a result of the Tea Party Caucus moving the goal posts. I prefer to call it *reneging* on promises and handshaken agreements.

    December 27, 2011 02:47 pm at 2:47 pm |
  2. Mikey

    Queue the idiotic postings from ignorant Obama haters in 3.. 2.. 1..

    December 27, 2011 02:47 pm at 2:47 pm |
  3. Fair is Fair

    Obama looking for TAXPAYER money to spend??? Who's have thunk. Hey Obama – why not ask the near-majority of those who pay no FEDERAL INCOME TAX (emphasis provided for those who will boast they pay state, local, gasoline, etc taxes) – yeah those, Obama... maybe they can kick a few bucks in?

    December 27, 2011 02:48 pm at 2:48 pm |
  4. GI Joe

    This has already been approved LAST YEAR – it's just a matter of how it is doled out this year. Remember? The big stink was getting it approved until after the 2012 election. IT WAS APPROVED.

    Get over your hate, folks. It's very very very old.

    December 27, 2011 02:53 pm at 2:53 pm |
  5. barry

    obama is a disaster.

    December 27, 2011 02:54 pm at 2:54 pm |
  6. GI Joe

    By the way - this will be used partly to make payments on the money borrowed 10 years ago for two tax cuts and two wars. MAKE PAYMENTS ON 10 YEAR OLD DEBT - (shhhhh – don't say who "borrowed that money", it drives the wing-nuts crazier0.

    December 27, 2011 02:55 pm at 2:55 pm |
  7. KJ

    I am sure he will phone it in like he usually does, Heard he is on his 90th round of golf today and if he would try to make it 180 by the of his first term the country would be much better off. When he showed up the first few months things were even worse. We are little safer inow while h is n his perpetual weak sister re-election mode.

    December 27, 2011 02:57 pm at 2:57 pm |
  8. Woman In California

    Fortunately, though, the increase should come without the fireworks the accompanied this summer's debt battle, as it comes in line with the deal struck back then.

    Such pretty words. However, this TP trash will deny "this" president ANYTHING and EVERYTHING just to belittle him and try to cast doubt on voters. It will not work just as it didn't work before because WE the people have had enough of it and most of us can't wait until "these types" are ALL out of office so the country can function civilly again as it used to.

    December 27, 2011 02:58 pm at 2:58 pm |
  9. Rudy NYC

    Fair is Fair wrote:

    Fair is Fair

    Obama looking for TAXPAYER money to spend??? Who's have thunk. Hey Obama – why not ask the near-majority of those who pay no FEDERAL INCOME TAX
    --------------------
    Maybe you should look at who they are before you condemn those who pay no taxes. Most do not make enough to pay taxes, and contrary to popular conservative belief systems, *no one* gets a refund on taxes that they didn't pay or have deducted from their salaries. In other words, Form 1040 doesn't let you get a refund from nothing.

    Many of them are seniors living on *tax free* pensions. The pensions are *tax free* because taxes have already been paid on them, year by year, as the the pensions grew. Taxing withdrawals from the pension would like taxing someone who withdraws from a savings account that they have held for 50 years, having paid taxes on all interest the account collected.

    December 27, 2011 03:00 pm at 3:00 pm |
  10. Truth and Nothing But the Truth

    Maybe they should just increase it another TEN TRILLION because that is what Obama and the Democrats have set us all up for over the next ten years? Total will be TWENTY FIVE TRILLION in debt... Where are the Democrats and Obama going to find all the evil rich people to blame THAT on, and to steal their money to pay for it?! But I'm sure the Chinese will lend us the money if we agree to rename Washington DC to Mao-Tse-Tung DC.

    Yes, it's a very fine future indeed that the Democrats are leading us to...

    December 27, 2011 03:18 pm at 3:18 pm |
  11. The Greedy Old Pigs have declared class war on US!

    Hey Unfair is Unfair, why are you asking the poor and retired to pay federal income taxes went the ultrarich are scamming our tax system and the vast majority of Americans (including the majority of the 1%) want the Bush tax cuts for the filthy rich ended and a new millionaire's surtax? Why are you so eager to defend the hidden elites who lurk in the shadows while corrupting our government and economy? Don't you think they should be making some "sacrifices" along with the rest of us?

    December 27, 2011 03:28 pm at 3:28 pm |
  12. Mikey

    @Fair is Fair, @Berry, @KJ, @Truth and Nothing,
    **********************************************
    Thank you so much for proving my point in the second post above.

    December 27, 2011 03:38 pm at 3:38 pm |
  13. Truth and Nothing But the Truth

    Maybe you should look at who they are before you condemn those who pay no taxes. Most do not make enough to pay taxes, and contrary to popular conservative belief systems, *no one* gets a refund on taxes that they didn't pay or have deducted from their salaries. In other words, Form 1040 doesn't let you get a refund from nothing
    ==============================================================================================
    Do they not use all of the infrastucture we all use? They benefit, they participate, they should be required to pay something, even if it is a little. Nobody should be getting a totally free ride at other's expense.

    And you have no idea what you are talking about when it comes to people getting back more than they pay. Tax credits accomplish this. The tax code has been turned into a welfare program through their use.

    "When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and
    qualify for the credit."

    December 27, 2011 03:44 pm at 3:44 pm |
  14. Fair is Fair

    Rudy says:

    "Maybe you should look at who they are before you condemn those who pay no taxes. Most do not make enough to pay taxes, and contrary to popular conservative belief systems, *no one* gets a refund on taxes that they didn't pay or have deducted from their salaries. In other words, Form 1040 doesn't let you get a refund from nothing. "
    -------–
    Really, Rudy? Then what do you call the "earned income credit"? It's a refundable credit – so if you qualify and are not liable for ANY amount, you still get this little "kiss in the mail" from the TAXPAYERS. But hey – don't let the facts get in the way of your ideology.

    December 27, 2011 03:44 pm at 3:44 pm |
  15. Rudy NYC

    Truth somebody wrote:

    Where are the Democrats and Obama going to find all the evil rich people to blame THAT on, and to steal their money to pay for it?!
    ----------------
    6 members of the Walton family, of WalMart fame, have a combined net worth eqivalent to more than 40% of the US population's net worth. And those six are not even the entire family. They are just the six wealthiest members of the family

    December 27, 2011 03:51 pm at 3:51 pm |
  16. BBkl

    Honestly both parites suck and we need some new blood in congress that not hopefully corrupted.

    December 27, 2011 03:51 pm at 3:51 pm |
  17. Four and The Door

    The only way America can survive this obcene accelerating increase in national debt is with a clean Republican sweep in 2012. A Republican Administration, House and Senate. Paul Ryan's Path To Prosperity is the only plan we have seen that deals directly with the debt. We are still waiting for Obama's plan. I think we just saw it here.

    December 27, 2011 03:54 pm at 3:54 pm |
  18. Yikes!

    "Truth and Nothing But the Truth"

    From every post I've read from you I believe that you made a mistake, it needs to read:
    "Truth and ANYTHING BUT the Truth"

    Try passing this through your brain: A BALANCED APPROACH, CUT SPENDING AND INCREASE TAXES. The reason that the rich need to pay more in taxes is because they have profited from low taxes and loop holes for the last 10 years and to be "fair and balanced" (as your propaganda news channel says) we need to ask the rich to give back some. President Obama and the Democrates have made cuts, show me the taxes.

    I hope that wasn't too much for you and others to process.

    December 27, 2011 03:55 pm at 3:55 pm |
  19. BBkl

    "Queue the idiotic postings from ignorant Obama haters in 3.. 2.. 1.."

    Better then bloodlessly following him and think everything he does is peachy and for the good of the nation, But hey go with it all the boogy bush fault line of thinking to spare obama any criticism.

    Again he had both houses for two years and didn't make a budget.

    December 27, 2011 03:58 pm at 3:58 pm |
  20. Fair is Fair

    Rudy goes on a tangent and says:

    "6 members of the Walton family, of WalMart fame, have a combined net worth eqivalent to more than 40% of the US population's net worth. And those six are not even the entire family. They are just the six wealthiest members of the family"
    --------
    How misleading are you trying to be, Rudy? Let me explain it so even you can understand. The key word(s) in your tirade are "net worth". There are MILLIONS of people in the US who owe more on their houses that the mortgage balance (due to their own poor decision making). These people have NEGATIVE net worth. There are millions more who have very little net worth for the same reason. So 40 million times zero is still ZERO. If you have 20 bucks in your pocket, you have more "net worth" than all of them combined too, Rudy. Sorry – that arguement just doesn't play.

    December 27, 2011 03:59 pm at 3:59 pm |
  21. Rudy NYC

    Fair is Fair asked:

    Really, Rudy? Then what do you call the "earned income credit"?
    ---------------–
    I call it typical of tax legislation introduced signed into law by Republican presidents. I am sure that tax lawyer Michelle Bachmann would have enjoyed taking that deduction. but she earned too much money to qualify for the deduction.

    You are trying to suggest that *everyone* who pays no federal taxes scams the system by declaring so many kids that they qualify for a refund. But, your income level would have to be so low that you live in poverty, like the old lady in a shoe. The EIC was introduced to encourage people to work for living, instead of not working and collecting welfare. I see the deduction as not being very different from deducting day care expenses.

    December 27, 2011 04:00 pm at 4:00 pm |
  22. Four and The Door

    The government is expected to come within $100 billion of the current limit by the end of this week, the Treasury official said.
    ________________________________________________________________________________________________
    And with Obama and Reid's original 2011 federal budget we would already have reached this limit. The Republican House got the 2011 budget reduced by $100 billion. And the Republican House forced the federal government to tie spending cuts to the last debt ceiling increase against firm resistance by Obama.

    We have no choice but to elect someone who will address the federal government's dire financial condition. Obama is not that guy.

    Romney 2012.

    December 27, 2011 04:10 pm at 4:10 pm |
  23. Rudy NYC

    Truth somebody wrote:

    And you have no idea what you are talking about when it comes to people getting back more than they pay. Tax credits accomplish this. The tax code has been turned into a welfare program through their use,
    --------------
    It is designed to fight poverty. What is your point? You complain about people sitting at home collecting welfare checks. Now complain about impoverished people who get up and work for a living, instead of collecting welfare. Poor people do not consume as much tax payer provided resources as people who are wealthier.

    It was introduced by Republicans to decrease the number of people on welfare because they can earn more by working somewhere and declaring their children. Do you know how hard it is to qualify for it? Your income must be around $20,000 or less if you are filing jointly, and around $16,000 if you file singly. That's poverty, man.

    December 27, 2011 04:11 pm at 4:11 pm |
  24. Rudy NYC

    Here's part of quote by Elizabeth Warren from a video that went viral in early October.

    BuThere is nobody in this country who got rich on his own. Nobody. You built a factory out there? Good for you. But I want to be clear: you moved your goods to market on the roads the rest of us paid for; you hired workers the rest of us paid to educate; you were safe in your factory because of police forces and fire forces that the rest of us paid for. You didn't have to worry that marauding bands would come and seize everything at your factory, and hire someone to protect against this, because of the work the rest of us did. Now look, you built a factory and it turned into something terrific, or a great idea? God bless. Keep a big hunk of it. But part of the underlying social contract is you take a hunk of that and pay forward for the next kid who comes along.

    December 27, 2011 04:12 pm at 4:12 pm |
  25. Fair is Fair

    Rudy takes a cue from Obama and shifts the blame by saing:

    "I call it typical of tax legislation introduced signed into law by Republican presidents."
    ----------
    But Rudy... you didn't answer my question. YOU said and I quote "contrary to popular conservative belief systems, *no one* gets a refund on taxes that they didn't pay or have deducted from their salaries. In other words, Form 1040 doesn't let you get a refund from nothing.". I PROVED you wrong. Eat it.

    December 27, 2011 04:13 pm at 4:13 pm |