DeMint: GOP working on new debt limit proposal

Senator Jim DeMint, R-S.C.

/ CBS

Republican Sen. Jim DeMint said Wednesday that Republicans in the House and Senate were working an alternate plan to raise the debt limit to the one Sen. Mitch McConnell proposed on Tuesday, and argued that "this idea that Republicans will not vote to increase the debt limit is wrong."

Tacitly dismissing McConnell's controversial plan, which would authorize President Obama to raise the debt ceiling three times before the end of 2012 with the contingency that he submit a list of commensurate spending cuts, DeMint, in a Wednesday appearance on CBS' "The Early Show," spoke of a proposal he and other Republican lawmakers were preparing on the side.

"We're going to introduce a plan that would give the president an increase in the debt limit but it's contingent on cutting spending and capping spending over several years, and giving the states the opportunity to decide if we're going to balance our budget in the next decade," the South Carolina Republican said. "It's a very reasonable proposal, but I think you'll see that coming out of the House over the next few days."

Republican lawmakers are split on McConnell's plan, which would, while allowing them to avoid voting to raise the debt limit, also essentially cede authority to the president on the matter. (While Mr. Obama would have to submit a list of tax cuts matching his debt increases, he would not be required to enact them.)

DeMint said in a radio interview Tuesday night that McConnell's plan "is going nowhere" - and emphasized on Wednesday that there are alternate paths to getting a deal done.

Still, whether or not this Republican proposal has any chance of gaining traction among Democrats remains to be seen; DeMint suggested that tax increases - a primary matter of contention in the talks, and one that's at least partially responsible for the repeatedly stalled nature of the negotiations - would be excluded from the legislation.

"History tells us that the only way to raise revenues is to get the economy going again, and one of the worst things you can do to the economy is to increase taxes on small business, which is the group that's in this category that the president is talking about," DeMint argued. "If they insist on taxes, again, it's just for political reasons."

He also called on Mr. Obama to submit his latest plan in writing.

"[Mr. Obama] has not made any proposal in writing to deal with entitlements and to deal with any specific cuts," DeMint said. "So, the president talks a lot, but we can't vote on a speech."

[karek40]

Is everyone who wants a tax increase crazy. I pay 34% federal on earned income, 7% state, 7.5% FICA, and 8,375% sales tax on what I buy. That is 57+% in taxes without counting property,real estate and taxes on fuel. How about leaving me some of what I earn. I hope the tea party holds the line and does not allow a increase in either taxes or the debt limit. We should have had a balanced budget admendment to the constitution and this would not be a problem.

[venusvegasvada]

Traditionally I've been a Republican, but you guys are making me sick.

[web6242a]

Demint is a Hooverite --- Cutting Trillions from the Govt. without also increasing Revenue will cause millions of lay offs Nationwide, further increasing the length, and depth, of the Recession. Hoover tried it during The Great Depression - to catastrophic results. During his fiscal austerity policy, Hoover took unemployment from 9-25% through fiscal austerity. FDR with his WPA, CCC,and finally WW11, finally pulled us outof the depression. By the way the GOP have never been fiscally responsible -- during Bush's tenure they rubberstamped two unpaid for Unecessary wars -- Created a whole new Dept of Homeland Security which the FBI could have handled, and were the only administration since George Washington to Give Tax cuts during Wartime--(Putting the expense on the Chinese Credit Card)-- Which effectively lowered the IRS % of income from 18 to 14.9GDP creating massive deficit's. They also enacted the unfunded Prescription drug plan. Republicans are certainly not the fiscal Conservatives they claim to be. They just use the Rhetoric to get hold of the Purse strings then spend just like the Dems --- The Only difference is they give money to the Rich while the Dems funnel money to the poor.

[Progress4U]

GOP!!!

Give the President a CLEAN Debt Ceiling Bill and then get the HELL TO WORK on a jobs bill!!!!

[sjc_1]

I agree, sure we need a package to reduce the deficits and the President put forward a $4 trillion package in April. The Party of NO is going to crash this country yet again and this time there is NO repairing it.

[samXXkiley]

coucou,

les propositions ?manant des R?publicains, favorisent une classe au d?triment d'une autre
l'impasse actuelle est le r?sultat des mauvais calculs des ann?es pass?es
?sp?rons que cette fois, ce sont les interets de la classe moyenne et des d?munis, qui seront pris en consid?ration


............................

proposals from the Republicans, favor one class over another
the current impasse is the result of bad calculations in previous years
Hopefully this time it is the interests of the middle class and poor, which will be considered
"au revoir"

[leepoe1]

History tells us what? The last ten years have had the lowest tax rates since the 60's. If the lowest tax rates in history have led us to this mess, why should we keep doing this? How stupid can people be? History tells us Clinton had a balanced budget then taxes were cut to the bone. What happened? The rich got oh so much richer and the rest of us got zip, nada, zilch! History, my patootie.

[vpcharan]

GOP in house and senate voted for the Ryan Plan, which increased deficit spending and added $6.5 Trillions over the next decade. This GOP vote assumed that debt limit would automatically be raised. Now they are attaching new strings to raising the debt limit. GOP has already raised the white flag of Surrender to President Obama yesterday. That is the way to go. GOP must now shut up and listen to the orders from White house. I love to see GOP breaking up in all directions.

[rodgermitchell]

All politics and no concern about what is best for America.

And what is best for America? A growing economy requires a growing supply of money. Our economy is starved for money. Federal deficit spending is the government's method for adding money to the economy. So what does Congress want to do? Reduce the deficit, aka reduce the growth of the money supply.

Why? They have no idea.

Historically, reductions in the growth of the money supply have led to recessions and depressions. See: http://rodgermmitchell.wordpress.com/2009/09/07/introduction/

America became Monetarily Sovereign in 1971, and Congress and the President don't know why. It's as though this most momentous economic change never happened. So while the politicians dither about politics, and the columnists write nonsense about the federal "debt," America suffers.

Rodger Malcolm Mitchell

[thomasmc1957]

The Republicans plan will no doubt involve -- as it ALWAYS does -- massive tax cuts for the Filthy Rich, and cuts in services for the poor and elderly. In Jesus name, of course.

[geez-every-name-is-taken]

GOP are raising taxes all over this country! They are raising taxes on middle class and handing it to the super rich, same thing they did last 8 years with Bush, we all seen the results of this practice? ( no Obama didnt crash this country in 2 years, the gop did it in 8 years), You really believe the lies, think im full of it.. google what is happening to states like Michigan where they taxed senior citizens 1.5 billion and handed 1.7 billion to super rich and calling it a tax cut??
Fascism should rightly be called Corporatism, as it is the merger of corporate and government power. Benito Mussolini