In it, but not of it. TPM DC

U.S. Hits Debt Ceiling

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They are refusing to raise the debt limit without substantial cuts to government spending and entitlement programs. GOP leaders on Capitol Hill continue to vacillate between claiming that the consequences of default would be smaller than the consequences of not cutting spending -- "failing to do something about the debt would be far worse in the long-run than failing to raise the debt limit," said Senate Minority Leader Mitch McConnell (R-KY) on the Senate floor Thursday -- and admitting that they're using the threat of a default to make good on long-standing conservative commitments -- "What better time to do something about the debt than in connection with raising the debt ceiling?" McConnell said at a press conference the same day.

The brinksmanship comes despite the fact that some of the GOP's strongest allies in the business community and on Wall Street are pushing for a swift resolution to the fight.

Still, Republicans have thus far set the terms of the debate, at least in the public realm. They insist they will not accept increasing revenues as part of any deal. They want to implement budget process reforms that will make it easier to cut spending in the future, and say they'll only raise the debt limit by as much or less than the "trillions" in spending cuts they're able to enact as part of a deal. Underneath that, they've expressed willingness to negotiate the precise cuts to discretionary, defense, and entitlement spending. But their opening bid -- the House GOP budget -- includes enormous cuts to Medicare and Medicaid. Indeed, the GOP's top budget guy, Rep. Paul Ryan (R-WI), is expected to double down on his proposal to slash and privatize Medicare in a speech today. House Speaker John Boehner (R-OH) said Sunday he sees no substantial movement from the Obama administration in his direction -- increasing the sense that a deal is still far off.

However, the precise details of negotiations between House and Senate leaders and the White House, led by Vice President Joe Biden, remain tightly held. So there's likely a gap between the perceptions presented in public statements and the reality behind the scenes. And that gap will likely grow as we approach August, and the consequences of dithering and the pressure to avoid calamity mount.

About The Author

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Brian Beutler is TPM's senior congressional reporter. Since 2009, he's led coverage of health care reform, Wall Street reform, taxes, the GOP budget, the government shutdown fight and the debt limit fight. He can be reached at brian@talkingpointsmemo.com