Boehner: Spending cuts should be greater than debt limit increase

AP Photo/Evan Vucci

House Speaker John Boehner will draw the first tangible line in the sand related to debt limit negotiations tonight in a speech at the Economic Club of New York.

Boehner will announce that Republicans will only increase the debt limit, the amount the United States can borrow in order to ensure the U.S. government can pay its debts, if spending cuts are greater than the amount of the debt limit increase.

"Without significant spending cuts and reforms to reduce our debt, there will be no debt limit increase," Boehner will say, according to excerpts released in advance of the speech. "And the cuts should be greater than the accompanying increase in debt authority the president is given. We should be talking about cuts of trillions, not just billions."

Boehner will also reiterate the current House GOP mantra when it comes to spending negotiations, saying that "with the exception of tax hikes -- which will destroy jobs -- everything is on the table."

He will say that there won't be "economic growth if we raise taxes and fail to address the drivers of our debt. The mere threat of tax hikes causes uncertainty for job creators -- uncertainty that results in less risk-taking and fewer jobs. If we're serious about balancing the budget and getting our economy back to creating jobs, tax hikes should be off the table."

GOP courts Wall Street amid debt limit concerns

Boehner will also say that reforming Medicare, despite two House chairman ruling it out this year, is still on the table, saying that "with millions of Baby Boomers beginning to retire, the status quo is unsustainable."

Boehner's speech and visit to New York is a mission to reassure investors and markets that Congress will be able to reach a deal to raise the debt limit and preserve the good credit of the United States. While Treasury Secretary Timothy Geithner has told Congress that he can keep paying the bills until August 2nd, lawmakers would like to reach a deal earlier in order to limit uncertainty.

Meanwhile, however, House Republicans are still in a "wait and see" mode as to when they will actually bring up a bill to raise the debt limit and cut spending. While negotiations with the White House will continue tomorrow, and House Republicans continue to hold listening sessions to educate members on what the debt limit is and the possible ramifications of not raising it, lawmakers are up against a difficult schedule since the House is gone 2 out of the next 5 weeks and the Senate takes a completely different week off at Memorial Day.

In his speech tonight, Boehner will also swipe at Democrats for not expanding domestic drilling in order to prevent the recent spike gas prices.

"Washington has also kept most of our nation's vast energy resources under lock and key for decades, over the clear objections of the American people -- the people who own those resources. If we had listened to the people decades ago -- or even a few years ago -- many of these resources would be available to us right now to lower the price of energy."

Boehner also will say that expanding drilling would increase jobs, estimating "about a million private-sector jobs in America that we don't currently have."

[diamruby]

Lets start the cuts with all government officals getting a large pay cut, they must pay for all benefits out of their own pocket. Next cut all foreign welfare in half or more, especially Mexico & Pakistan. Then lets look all the wealthy & large corporations that do not pay any taxes. Let's set up farms where all welfare users will work & grow their own food to not only learn how to work but also feed their very large welfare families. Start collecting federal & state taxes from all the free loaders that do not pay but get a huge tax refund at the end of the year, money that they have not paid in. Everyone should be on an equal basis for taxes etc., too many of us are being raped by our government to support the lazy & ungratefuls of the world.

[sjc_1]

$2 trillion in tax breaks, $1 trillion for wars and a financial collapse brought on by Bush's ignorance have taken their toll. For every $3 used to reduce the deficit $2 needs to come from revenue and $1 in cuts. That would be $300 billion in cuts and $600 billion in revenue to cover the $900 billion in debt ceiling increase.

[jxknowles]

Falling tax revenues, due to cuts, and two unpaid for wars are the primary causes of the deficit increase, not massive spending increases on entitlement programs. That's the facts, Jack. Across the board decreases in spending are in order, yes, but until you talk about raising taxes on the wealthiest Americans and profit-heavy businesses, you are wasting everybody's time.

[ddaryl]

how about we start with big oil subsidies, you know those oil companies getting billions in cut backs while they show record profits.

How about cutting off all foreign aid unless its to help a country through a tragedy like a Tsunami or epidemics, or starvation.

nah not the republican party all they care about is killing medicare, social security planned parenthood NPR etc while they give away our money to the already wealthy and design bailouts for the too big to fail banks

[wfw3536]

It is about time someone in Washington has some sense. Obama showed me he had no idea when in a couple months ago he presented his budget to Congress with an increase in spending. The last 3 years we have spent more than 1.5 trillion dollars that we do not have. This type of behavior shows me this administration just does not understand that soon we will be a 3rd world country where money is so inflated that you need a box full cash to by a candy bar.

[crazyname]

Only makes sense to people with a brain. the libs get votes by spending money that we don't have and may never have. All part of the plan to bring the economy and the US to it's knees so we all have to depend on the government for handouts! this is not Mexico or the soviet union.

[ddaryl]

who spent money from 2000- 2008 and then gave tax breaks to wealthy and subsidies to big oil who's profits have hit records for the last 10 years...

WHO I ask . it was the republicans...

and all I am reading here with republicans is the same old lies lies lies.... stop pandering to the wealthy and start fixing the foundation of this country, the American worker !!!!!!!

If you don't strengthen the foundation which is American workers then this country will fail

[reluctantzealot]

Liberals won't be happy until there is NO LIMIT and they can steal as much money as they like and then laugh at the children of the next generation and scream "SUCKER"...

[Dont_Tread_on_me]

After the 2011 Budget resolution (232 million in cuts, not 38 Billion), I highly reccomend a Vote of No-Confidence on Speaker Boehner.

It doesn't matter what Party your in, your being lied to, and your just accepting it.

Now that is pitiful.

[pasha128]

Most of those cuts was money in contingency funds -- that would not have been spent. Cutting money that would not have been spent doesn't change government spending at all.

[wdrussell1]

The GOP/TeaBirchers have become a one trick pony.
We are against everything that does not specifically benefit the wealthy.

[nomorelibs]

What's wrong with a one trick pony at this point, when they're trying to save this country from finacial meltdown? The question shoule be, why aren't the Democrats on board with saving this country? Tax and spend, tax and spend. No budget for two years. Why does that not alarm you? Of course Republicans have their issues. But at this point both parties should be doing everything in their power to lower the debt and spending. But that won't happen, because getting re-elected is more important.

[ddaryl]

I agree... Republicans will be taken down once and for all.. there policies are beyond absurd.

Why are the Bush subsidies for big oil which costs this country billions every year not removed or even mentioned by republicans....

Yeah I will depend on social security for retirement and medicare even though I work over 50 hours a week.....

I thought republicans beleived in the free market.. so why do they give subsidies to big oil and then design bailouts for banks like TARP

HYPOCRITES every single last one of them.

[northpark2]

Boehner's that predictable eh? Why should he even show for the event? CBS has it covered.