Cornyn: Short-term debt-limit increase might be needed

A short-term debt-ceiling extension might be necessary, Sen. John Cornyn (R-Texas) suggested Tuesday, in light of an impasse between Republicans and Democrats over compromising on a long-term extension.

Speaking on local Dallas KRLD radio station, Cornyn echoed a suggestion former President Clinton made this weekend when he said that if lawmakers can't agree on a permanent extension, President Obama should seek to pass a shorter debt-ceiling extension that would last for six or eight months.

"I think that's more likely than not at this point because we're basically running out of time," Cornyn said, "because the House has to pass it as well as the Senate and really we're coming up against an Aug. 2 deadline, so it may be we'll get sort of a mini-deal as President Clinton said, but really we need to deal with the problem as a whole and that means not just kicking the can down the road which is what a mini-deal would be."

Cornyn's comments come as Democrats and Republicans continue a standoff over a debt-ceiling extension as Aug. 2 deadline approaches, the date the Treasury Department says is the absolute latest a debt-ceiling extension can be passed before the U.S. defaults on payments due.

Republicans have demanded that any compromise on extending the debt ceiling be revenue neutral and not include any form of taxes. Democrats, meanwhile, have said that a debt-ceiling increase must include additional taxes.

Last week Obama called on Republicans to agree to a deal that included raising taxes on some of the wealthiest Americans as well as consent to ending tax subsidies for big oil-and-gas companies.

On Saturday Clinton said that he didn't think Republicans would agree on any kind of "mega-deal" compromise and that Democrats should instead seek to pass a short-term deal.

"I don't think you can agree to some mega-deal on [Republican's] terms," Clinton said. "And so I think as they get closer I believe they will agree on a more modest package of cuts and the Republicans, if I were in their position, I would say this only counts for six months or eight months or whatever, but we don't want to let the American people's credit go under, let our credit get downgraded."

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