Boehner: Spending Cuts Must Offset Debt Limit Hike
WASHINGTON (AP) — House Speaker John Boehner says that when Congress raises the nation's borrowing cap he will again insist on spending cuts and budget reforms to offset the increase.
The Ohio Republican took the same stance a year ago during last summer's debt battle. That measure produced a 10-year, $2 trillion-plus package of spending cuts. But with the failure of the so-called deficit supercommittee to reach a deal, automatic spending cuts are set to hit the Pentagon and other Cabinet agencies next year.
Treasury Secretary Tim Geithner says the government will hit its borrowing cap late this year but that Treasury can use accounting maneuvers to buy time for the newly elected Congress to deal with the issue early next year.