Republicans, particularly in the House, want to insist on spending cuts at every turn. Although they failed in this round, they drove that argument in last year’s debt-ceiling fight, and they will replay it in the next few weeks.
The U.S. hit the debt limit Dec. 31 and the Treasury Department began employing so-called extraordinary measures to finance about $200 billion in deficits in 2013.
A debt limit increase will be needed as early as mid- February, according to the Congressional Budget Office, and the automatic spending cuts will start taking effect March 1.
Last night Obama said he won’t “have another debate with this Congress over whether or not they should pay the bills they’ve already racked up.”
Republicans want to replay their demand that debt limit increases be matched dollar-for-dollar with spending cuts.
Obama said he wants future deficit-reduction deals to feature a “balanced” approach that includes spending cuts and further tax increases.