Dems.Introduce Bill To Outlaw Defaults

A trio of Democratic Senators introduced a bill on Tuesday that they claim would permanently take the threat of a U.S. government default off the table.

The bill from Sens. Charles Schumer, D-N.Y., Barbara Boxer, D-Calif., and Mazie Hirono, D-Hawaii, would permanently allow the president to raise the debt ceiling without Congressional approval.

The Congress would instead have the option to vote to disapprove of the debt ceiling increase, although the resolution of disapproval would likely be vetoed by the president.

"The way it works right now, the debt ceiling is like a ticking time bomb that threatens massive economic destruction," said Schumer. "This bill would defuse it."

"By forcing Congress to disapprove debt ceiling increases, we greatly reduce the risk of default that would be a crushing blow to our economy - taking money out of middle-class pockets and destroying middle-class jobs," he added.

The Senators claimed that the bill was modeled after the so-called “McConnell Rule,” noting that Senate Minority Leader Mitch McConnell, R-Ken., proposed a similar process to end the budget fight in 2011.

 How do you thing the GOP is going to react? Particularly when it gets to the house they are going to need some Republicans and all Democrats to make into a bill that can become law.

Speaking of Republicans, McConnell was quick to dismiss the proposal, saying the real “McConnell Rule” is to tie increases in the debt ceiling to reductions in spending.

"If the Senator from New York is interested in working with me to enact another $2 trillion in bipartisan cuts, then let's get down to brass tacks," McConnell said. "The American people would love to see us working in a bipartisan way to help them."

"But if he insists on pushing this 'Schumer-Obama Plan,' he's not going to find any dance partners on this side of the aisle," he added.

Earlier this month, lawmakers passed legislation temporarily raising the debt ceiling and narrowly avoiding a default by the U.S. government.