Boehner: Trillions in cuts loom in debt-limit vote

Associated Press

NEW YORK

The top Republican in Congress wants trillions of dollars in spending cuts as part of must-pass legislation allowing the federal government to continue borrowing to keep it operating and meeting obligations to investors. It’s a new, ambitious marker in a battle over the budget that’s expected to consume Congress for much of the summer.

House Speaker John Boehner also said that any legislation to raise the so-called debt limit beyond its current $14.3 trillion cap should be accompanied by spending cuts larger than the amount of the permitted increase in the debt.

The Ohio Republican made the comments in a speech Monday night to the New York Economic Club. Boehner’s comments come as investors and business groups have been seeking assurances that the GOP-controlled House will join with President Barack Obama and the Democratic-led Senate to enact the must-pass debt- limit measure, which is needed to prevent a market-roiling, first-ever U.S. default on its obligations.

Treasury Secretary Timothy Geithner says a failure to increase the federal government’s ability to borrow would have disastrous effects on the economy.

“It’s true that allowing America to default would be irresponsible,” Boehner said. “But it would be more irresponsible to raise the debt limit without simultaneously taking dramatic steps to reduce spending and to reform the budget process.”