Tax-law-challenged Treasury Secretary Timothy Geithner sent a letter today to Harry Reid, Mitch McConnell, and all members of the U.S. House of Representatives to explain that we’re on track to hit the debt limit on New Year’s Eve.
For context on Geithner letter, during previous debates "hitting" debt ceiling usually means Treasury has couple months before $ runs out
— Ed Henry (@edhenry) December 26, 2012
Oh, a couple of months? Great. No need to worry, then.
https://twitter.com/RussCroteau/status/284050606430244864
Here is the full text of the letter:
I am writing to inform you that the statutory debt limit will be reached on December 31, 2012, and to notify you that the Treasury Department will shortly begin taking certain extraordinary measures authorized by law to temporarily postpone the date that the United States would otherwise default on its legal obligations.
These extraordinary measures, which are explained in detail in an appendix to this letter, can create approximately $200 billion in headroom under the debt limit. Under normal circumstances, that amount of headroom would last approximately two months. However, given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it is not possible to predict the effective duration of these measures. At this time, the extent to which the upcoming tax filing season will be delayed as a result of these unresolved policy questions is also uncertain. If left unresolved, the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures. Treasury will provide more guidance regarding the expected duration of these measures when the policy outlook becomes clearer.
Sincerely,
Timothy F. Geithner
“Extraordinary measures”? Like reducing spending, perhaps?
https://twitter.com/jeffemanuel/status/284046558801063938
https://twitter.com/amandacarpenter/status/284049280057094144
Nah. Perish the thought.
https://twitter.com/jimmiebjr/status/284046993154797568
Move over fiscal cliff. The big dog is back. RT @RamCNN: Just In: Treasury Secretary Geithner says U.S. to reach debt ceiling Monday
— Debt Limit (@Debt_Limit) December 26, 2012
Obama now playing games with debt ceiling. Says today that country will hit limit on 31st of Dec.They just figured that out w a week to go?
— Pete Hoekstra (@petehoekstra) December 26, 2012
I, for one, am shocked that we're hitting the debt ceiling again so soon. Obama said he cut spending. #sarcasm #tcot
— RBe (@RBPundit) December 26, 2012
https://twitter.com/DismantleFed/status/284048673233592321
Time for the trillion dollar coin RT @RamCNN: Just In: Treasury Secretary Geithner says U.S. to reach debt ceiling Monday
— Scott Warheit (@swarheit) December 26, 2012
Why not, right?
Tim Geithner during college: "Hey Mom, I just wasted all the money you gave me on blow. Send me more, NOW!"
— jon gabriel (@exjon) December 26, 2012
https://twitter.com/amandacarpenter/status/284047206456107008
https://twitter.com/SpoaSteph/status/284056746815799296
Happy New Year, everyone!
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