Initial reports were that Sen. McConnell would offer a debt ceiling proposal as a last resort that would essentially cede power of the ceiling to the President. Well, not really. According to the Capitol Hill paper, Roll Call, it's a bit more complex. It would require the President to submit three small debt limit increases, each one accompanied by equal spending cuts, and they would become law unless disapproved by two-thirds of both Houses.
And what's the reaction on the Hill? Lukewarm, it appears.
Senate Majority Leader Harry Reid (D-Nev.) told reporters he had no plans to "trash" McConnell's plan and would give it a close look
Here's more detail on the proposal.
Under McConnell’s proposal, the president would send a request to Congress for a debt limit increase that is offset with spending reductions elsewhere. Congress would be allowed to vote on a resolution of disapproval that would kill the increase, but the president would be able to veto that resolution. Congress then would have to come up with a two-thirds supermajority to prevent the debt ceiling from increasing.
So, yes, the ceiling would be raised unless two-thirds of Congress disapproved, but each debt ceiling request would have to be accompanied by an equal dollar amount of spending cuts. Now, if it could be in connection with tax increases, that would be great. But it's likely we'll see that.
McConnell is also setting it up so that Democrats will have to vote three times to approve necessary increases in the limit.
The framework McConnell announced Tuesday would have a vote this month for a $700 billion increase, a second this fall worth $900 billion and a third next summer for another $900 billion. It was not immediately clear whether House Republicans or Senate Democrats would get behind such plan.
This requirement is not only politically unacceptable, but Obama has already said he won't approve short term increases.
Sure Mitch, keep on thinking.
So this is apparently McConnell's big contingency plan. He could make it real simple by just raising the ceiling now with no add-ons, but I'm not holding my breath. One thing we know for sure, you can't seriously consider any propsal from a guy who says this,
“The President has presented us with three choices: smoke and mirrors, tax hikes, or default. Republicans choose none of the above.”