MW: Treasury urges extension of debt limit ceasefire
By Greg Robb
WASHINGTON (MarketWatch) -- The Treasury Department on Wednesday pressed Congress to extend the mechanism that has allowed the debt ceiling to be increase three times in the past two years without bitter partisan conflict. First adopted in August 2011, the mechanism, called the "McConnell Provision" by Treasury after Senate Republican leader Mitch McConnell, sets up expedited votes in both houses of Congress on legislation to disapprove debt limit increases. The president would preserve the right to veto the measure. "Extension of the McConnell Provision would lift the periodic threat of default from the U.S. economy and remove politics from future debt limit debates, while preserving Congress' essential rose in spending, revenue, and borrowing decisions," Treasury spokesman Jenni LeCompte said in a blog post. Treasury has estimated that it would hit the $16.4 trillion debt ceiling by the end of the year. In the past, Treasury has been able to put off reaching the borrowing limit for a few months by using several accounting gimmicks. The timing of the increase is playing an important role in the fiscal cliff talks.
