Thursday, October 10, 2013

Reed Skeptical of GOP Debt Ceiling Proposal

Rep. Tom Reed (R-Corning) emerged from a closed-door meeting this morning skeptical of a proposal to temporarily raise the debt ceiling.

The idea, proposed by House Republican leadership, would raise the debt limit for six weeks, staving off a default that economists say would devastate the economy.

The proposal, however, would not reopen the government, but instead set the stage for negotiations to take place between Democrats and Republicans.

“It’s another concern I have,” said Reed, referring to the government remaining closed. “This stop gap measure, and you’re only dealing with the debt ceiling, you’re not dealing with the continuing resolution. That’s why I believe the better approach is to look at this from a bigger play, a longer term play. And I know the clock is ticking, but, you know what, at least it makes us move in the right direction in my opinion.”

It’s unclear if the White House will go along with the proposal either, but the initial response from the Obama Administration was not a complete dismissal.

“The President is happy that cooler heads, at least, seem to be prevailing in the House,” said White House Press Secretary Jay Carney.

Carney, however, also indicated that the Administration would not negotiate on a longer term budget deal until the House agreed to a clean funding resolution that would reopen the government.

That seems off the table from House leadership, which is painting the debt ceiling proposal as a compromise and a way to reach the Administration half way.

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