The House resolved Washington’s most immediate fiscal problem by passing a short-term extension of federal borrowing authority. The Senate is expected to follow suit in coming days, which would set aside for now the potentially explosive question of whether the U.S. government might be unable to borrow money to pay its bills.
But House Budget Committee Chairman Paul Ryan (R., Wis.), at a breakfast hosted by The Wall Street Journal just hours before the debt vote, promised he would in coming weeks submit a budget plan that would erase the annual federal deficit within a decade by cutting government spending—and without raising tax revenue. That commitment helped House GOP leaders to persuade reluctant conservatives to defer the fight over the debt ceiling.
“The president got his revenues,” said Mr. Ryan, his party’s vice presidential nominee, referring to the $600 billion tax increase approved by Congress early this month. “My vision is, in the intervening days and months, that we will have this debate about how to fix this problem, and hopefully, people can come together to agree on getting a down payment on the debt crisis, getting a down payment on spending cuts.”
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