GOP May Hold Debt Ceiling Hostage To Enact Paul Ryan’s Budget

http://thinkprogress.org/economy/2013/07/07/2262381/gop-may-hold-debt-ceiling-hostage-to-enact-paul-ryans-budget/

By Igor Volsky posted from ThinkProgress Economy on Jul 7, 2013

House Republicans will hold the national debt ceiling increase hostage until President Obama agrees to mandatory spending cuts to Social Security, Medicare, and Medicaid, the National Journal reports, and will seek to use the leverage of default to force Democrats to enact the policies in Rep. Paul Ryan’s (R-WI) budget.

Since slashing discretionary spending to historic lows — the discretionary side of the ledger has grown at a slower rate than inflation since 2007 and now makes up a smaller share of the economy than it did before the Great Recession — the GOP has shifted from demanding dollar-for-dollar immediate spending cuts and is now focusing on drafting a range of options to significantly restructure mandatory benefit programs.

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For a medium-sized increase in the debt-limit, Republicans want Obama to agree to cut spending in the SNAP food stamp program, block-grant Medicaid, or tinker with chained CPI.

For a smaller increase, there is talk of means-testing Social Security, for example, or ending certain agricultural subsidies.

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