House Lawmakers Pass Three-Month Increase in Debt Ceiling
WASHINGTON, Jan 24 — A bill to raise the nation’s borrowing authority that includes a provision to require Senate lawmakers to pass a budget or lose their paycheck passed the House on January 23. House lawmakers passed the No Budget, No Pay Bill of 2013 (HR 325) by a vote of 285 to 144. The legislation, which raises the debt ceiling through May 19, would allow lawmakers time to negotiate spending cuts required under the Budget Control Act.
House Majority Leader Eric Cantor, R-Va., said he looks forward to working with the White House and the Senate to address the federal red ink. “Today’s vote was the first step towards trying to resolve the nation’s fiscal crisis in a responsible manner,” he said. House Ways and Means ranking member Rep. Sander M. Levin, D-Mich., criticized the legislation because it creates further uncertainty. “This Republican bill is not a change in policy. It is a change in tactics,” Levin said. “House Republicans continue to play with economic fire. They are playing political games and that undermines certainty.”
Senate Democratic leaders praised House Speaker John Boehner, R-Ohio, for successfully bringing the bill to the House floor and defusing another fight over the debt ceiling.”This is a clean debt-limit increase that will set the precedent for future debt-ceiling extensions,” said Senate Majority Leader Harry Reid, D-Nev., who plans to seek an agreement with Republicans to bring the measure to the Senate floor in the coming days. Sen. Charles E. Schumer, D-N.Y., the third highest ranking member among Senate Democrats said the bill represents “a huge de-escalation,” on the debt-ceiling issue. “And, it shows that the Republicans are in full-on retreat on fiscal policy. President Obama has consistently said he’d refuse to negotiate around the debt ceiling,” said Schumer.
The White House issued a Statement of Administration Policy saying the president would sign the bill despite some reservations. “Although HR 325 is a short-term measure and introduces unnecessary complications…the administration would not oppose a short-term solution to the debt limit,” read the statement.
JDKatz, P.C. is a full-service law firm focused on tax law and estate planning. We are dedicated to minimizing your existing liability and risks while providing valuable tax planning to streamline your tax issues in the future. Please call us at 301-913-2948 to schedule an appointment to meet with one of our trusted attorneys.