But if the Dec. 28 meeting does not include a repetition of Obama’s demand for a two-year increase, it likely would mean that Obama would has dropped his demand.
Without an increase in the debt ceiling, the federal government can’t borrow more money on the international market, leaving it reliant on taxes to pay its massive bills.
But current tax revenue is only enough to pay for the the first seven months of each year because the federal government is spending roughly $1 trillion above its tax income of roughly $2.5 trillion.
Before Christmas Obama demanded that the GOP allow him to raise the debt ceiling for two years. In practice, that would allow him to borrow another $2 trillion to fund the federal deficit for another two years.
“If Congress in any way suggests that they’re going to tie negotiations to debt ceiling votes and take us to the brink of default once again as part of a budget negotiation… I will not play that game,” Obama huffed Dec. 5 to a room full of business executives.
GOP leaders laughed off the demand, saying it would give away one of Congress’ core powers, and deny the GOP any means to slow federal spending.