Posts Tagged ‘Debt Limit’

It’s Groundhog Day Over the Debt Ceiling

If you recently heard the news that Congress is debating the merits of raising the debt ceiling, don’t think you have time-traveled back to 2011 or to 2012. In the absence of Congressional action, and barring some extraordinary measures, the debt ceiling is set to be breached sometime in the next several weeks, and the […]

Could the GOP Boost Tax Reform By Adding the Idea to the Debt Limit?

House Republicans reportedly are considering several ways to add a framework for tax reform to legislation needed to increase the federal government’s borrowing authority. Could such a rider increase the chances of reform happening in the near future? Sadly, no. Indeed, it is likely to bury a tax code rewrite even more deeply in Washington’s […]

The Costs of Debt Limit Brinksmanship

Today I had the chance to testify before the Joint Economic Committee about a perennial challenge, the looming debt limit. Here are my opening remarks. You can find my full testimony here. I’d like to make six points about the debt limit today. First, Congress must increase the debt limit. Failure to do so will […]

Is Obamacare the GOP’s White Whale?

 “The White Whale swam before him as the monomaniac incarnation of all those malicious agencies which some deep men feel eating in them…All that most maddens and torments; all that stirs up in the lee of things;…all that cracks the sinews and cakes the brain; all evil…visibly personified …and made practically assailable in Moby Dick” […]

Tax Reform Bumps Into More Political Reality

If Congress is going to reform the tax code, it will take an enormous amount of hard work and a lot of luck. The stars, as they say, will have to align. Unfortunately, those galactic bodies seem to be getting more and more disarranged. Reform just can’t catch a break. The deficit is shrinking, taking away […]

What You Should Know About the Budget Outlook

The Congressional Budget Office released its latest Budget and Economic Outlook earlier this week.  As always, the Outlook provides insight into the fiscal status of the federal government. My three overarching reactions are: First, because American Taxpayer Relief Act of 2012 (ATRA) instituted tax changes that had been widely expected, the official (“current law”) baseline is now much […]

Five Key Facts about the House Debt Limit Bill

On Wednesday, the House will vote on a bill to delay the upcoming debt limit showdown. The bill includes no spending cuts, no tax increases, and no platinum coins of unusual size. Instead, it will “suspend” the debt limit through May 18 to give lawmakers time to pass a budget in each chamber. To give […]

A Budget Deal is Staring Them in the Face, But Here’s Why Lawmakers Won’t Compromise in 2013

There is an obvious solution to Washington’s perpetual budget crisis. But it is unlikely to happen because all the incentives—both political and economic—are completely wrong. First, the solution: The core of a deal was framed last December, when President Obama and House Speaker John Boehner were on the verge of a long-term fiscal agreement that would have cut […]

Is the Trillion-Dollar Platinum Coin Clever or Insane?

Policy wonks are debating whether a trillion-dollar platinum coin would be a clever or insane way for President Obama to play hardball with Republicans in the upcoming debt limit battle. Here’s what you should know about this crazy-sounding idea: 1.     A legal loophole gives the Treasury Secretary apparently unlimited authority to mint platinum coins. Treasury […]

Congress Kicks the Fiscal Can off the Front Stoop

In the end, it looks like Congress isn’t even going to kick the fiscal can down the road. Assuming the House passes the deal agreed to by the Senate on New Year’s Eve, lawmakers will barely get that battered tin container it off the front stoop. The agreement preserves nearly all of the 2001-2010 tax […]