“Deeply Irresponsible”: It’s Clear Now Why The “Boehner Rule” Is Such A Terrible Idea
The GOP’s insistence on using the debt ceiling as “leverage” is deeply irresponsible.
But politics and philosophy aside, let’s quickly examine the practicality of the GOP’s stance in these negotiations.
In 2011, when the GOP made its debt ceiling stand, there emerged a concept now known as “The Boehner Rule” which basically says that any debt ceiling hike has to be matched dollar for dollar with cuts. So a $1 trillion hike to the debt ceiling must see $1 trillion in cuts, and so forth.
Already, everybody hates the fruits of the 2011 fight, because now we have the “sequester” which caps spending on defense and other domestic programs — which is something that everybody wants to undo.
But even though everyone hates what came out of the 2011 fight, the GOP is at it again.
Senator Bob Corker said this weekend that a good trade will be a debt ceiling hike for cuts to Medicare.
From Burgess Everett at POLITICO:
Tennessee Sens. Bob Corker and Lamar Alexander pitched a plan on Friday to cut federal spending by $1 trillion — much of it from Medicare — in exchange for increasing the nation’s borrowing limit by that amount. The plan would raise the Medicare eligibly age to 67 and require wealthier Medicare users to pay higher premiums. Treasury Secretary Tim Geithner has estimated extraordinary measures can push the necessity of Congress addressing the debt ceiling until perhaps February.
“Here we are on Dec. 29 without a serious proposal before us to deal with the biggest issue, which is entitlements,” Corker said. “There’s been a lot of discussions about figuring out a way to deal with the … revenue side and at least getting that portion out of the way. Since we know it’s going to happen either before the 31st or after.”
(As an aside, remember that less than two months ago, the GOP was still bashing Obama for Medicare cuts, so… yeah.)
Tonight Corker is talking about tying a debt ceiling hike to Social Security cuts.
So okay, let’s imagine Obama caves on this (something he’s already pledged not to do). So we hike the debt ceiling and cut medicare. Then in a year or so, we hike the debt ceiling again by another $1 trillion and cut Social Security. These programs can’t be cut forever. If we raise the Medicare eligibility age to 67 now, we’re not going to come back and raise it to 68 or 69 the next time the debt ceiling fight comes up.
There just aren’t that many times you can keep squeezing another $1 trillion in spending cuts. The “Boehner Rule” might give you a couple of whacks, but as an actual policy it will quickly fail.
So practically, risking the U.S. full faith and credit every time this comes up, to being able to agree on new spending cuts is unrealistic. And as a matter or principal it’s awful.
By: Joe Weisenthal, Business Insider, December 30, 2012
“Hostage Takers, Act II”: GOP To Hold Debt Ceiling Hostage Again As Leverage For Medicare Cuts
On Sunday, Sen. Bob Corker (R-TN) conceded that Democrats have won the debate on raising taxes on the richest Americans and said that he would likely vote to increase rates on the top 2 percent of Americans in order to shift the debate to cutting entitlement programs and improve the GOP’s leverage in the debate over how to avert the so-called fiscal cliff.
During an appearance on Fox News Sunday, Corker explained that if Republicans “give Obama a 2 percent increase,” the party can then hold the debt ceiling hostage in order to secure real cuts in spending:
CORKER: The Republicans know they have the debt ceiling, that is coming up around the corner, and, the leverage is going to shift, as soon as we get beyond this issue. The leverage is going to shift, to our side where hopefully we’ll do the same thing we did last time and that is if the president wants to raise the debt limit by $2 trillion we get $2 trillion in spending reduction and, hopefully, this time, it is mostly oriented towards entitlement and with no process. […]
[Obama] has the upper hand on taxes and you have to pass something to keep it from happening. We only have one body. If we were to pass, for instance, raising the top 2 rates, and that’s it, all of a sudden we do have the leverage of the debt ceiling and we haven’t given that up so the only way the debt ceiling.
House Speaker John Boehner (R-OH) has indicated that the GOP plans to use that leverage by demanding more spending cuts, but the move will result in great economic costs. In 2011, Republican demands nearly led to a credit default and ultimately cost taxpayers “$18.9 billion over 10 years, due to elevated interest rates between January and August 2011.”
Obama slammed the GOP’s strategy during a meeting with business leaders last week. “The thinking is the Republicans will have more leverage because there will be another vote on the debt ceiling, and we will try to extract more concessions with a stronger hand on the debt ceiling,” Obama told members of the Business Roundtable. “That is a bad strategy for America, it’s a bad strategy for your businesses, and it is not a game that I will play.”
By: Igor Volsky, Think Progress, December 9, 2012
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