Debt Limit Negotiations Are Routine

Presidents Routinely Negotiate On Debt Limit In An Effort To Address The Debt, Why Won’t This One?

PRESIDENT OBAMA: “If Congress in any way suggests that they're going to tie negotiations to debt-ceiling votes… which by the way we have never done in our history until we did it last year, I will not play that game.” (“White House Draws Hard Line On Debt Ceiling,” The Wall Street Journal, 12/5/12)

‘Nearly Every Significant Deficit Reduction Law Of The Past 27 Years Has Been Linked To A Debt Limit Debate’

43 U.S. SENATORS: “The 1985 Gramm-Rudman-Hollings Act, which helped reduce the deficit, was attached to a debt limit bill. The three largest deficit reductions bills in the 1990s – in 1990, 1993, and 1997 – were each linked to debt limit legislation, as was the Statutory Pay-As-You-Go Act of 2010. Finally, the debt limit was the impetus for the 2011 Budget Control Act, estimated to save $2.1 trillion over the decade. In short, nearly every significant deficit reduction law of the past 27 years has been linked to a debt limit debate. For Congress to surrender its control over the debt limit would be to permanently surrender what has long provided the best opportunity to enact bipartisan deficit reduction legislation.” (Sen. Portman, Letter To President Obama, 12/5/12)

2011: “The Congressional Budget Office has estimated the impact on the deficit of the Budget Control Act of 2011… Total Effect on the Deficit, 2012-2021: -2,117 [billion dollars].” (Douglas Elmendorf, CBO Director, Letter To Rep. Boehner & Sen. Reid, Congressional Research Service, 8/1/11)

• “The legislation would … increase the debt limit… $2.1 trillion...” (Douglas Elmendorf, CBO Director, Letter To Rep. Boehner & Sen. Reid, Congressional Research Service, 8/1/11)

1997: “Balanced Budget Act of 1997 and Taxpayer Relief Act of 1997… 5-Year Deficit Impact: - $118 billion.” (“Savings In Mandatory Outlays In Selected Reconciliation Acts,” Congressional Research Service, P.2, 12/29/06)

• “Increase in the debt limit… August 5, 1997, Public Law 105-33 … Change from previous limit $450 [billion].” (“The Debt Limit: History And Recent Increases,” Congressional Research Service, 5/22/12)

1993: “Omnibus Budget Reconciliation Act of 1993… 5-Year Deficit Impact: -$433 billion.” (“Savings In Mandatory Outlays In Selected Reconciliation Acts,” Congressional Research Service, P.2, 12/29/06)

• “Congress… raised the debt limit from $4.37 trillion to $4.9 trillion.” (“If Ends Don't Meet, Move Them,” Orlando Sentinel, 10/13/1993)

1990: “Omnibus Budget Reconciliation Act of 1990… 5-Year Deficit Impact: -$482 billion.” (“Savings In Mandatory Outlays In Selected Reconciliation Acts,” Congressional Research Service, P.2, 12/29/06)

• “The signing of the budget-tax package also triggered a $950 billion increase in the statutory debt limit that was included in the budget package…” (“Bush Signs Bill That Reinstates Mortgage Bond, IDB Exemptions,” The Bond Buyer, 11/7/1990)

1985: President Reagan: “Today I have signed H.J. Res. 372, which increases the statutory limit on the public debt and includes the Balanced Budget and Emergency Deficit Control Act of 1985, also known as the Gramm-Rudman-Hollings amendment. With the passage of this landmark legislation, the Congress has made an important step toward putting our fiscal house in order. Deficit reduction is no longer simply our hope and our goal -- deficit reduction is now the law.” (President Reagan, Statement On Signing H.J. Res. 372 Into Law, 12/12/1985)

• “…the legislation's declining deficit targets estimated to require $11.7 billion in spending cuts for the current year and $50 billion to $60 billion next year.” (“Survey: Economists Pessimistic About Balanced-Budget Plan,” UPI, 12/16/1985)

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