Washington is in the midst of a critical debate over the future of Obamacare – a debate so critical President Obama and Harry Reid were willing to shutdown the government for fear the debate would lead to the unraveling of their unworkable law. At the same time, discussions about the debt limit are taking place.
The Heritage Foundation and other conservatives have explained that U.S. has much more tax revenue coming in on a daily basis than it has to pay each day on interest payments; this means the U.S. has the financial means to cover its debt obligations without incurring more debt. Heritage notes:
The Obama Administration argues that failure to raise the debt limit would lead to a default on federal debts, causing unacceptable harm to the economy. But the President has ample discretion to prioritize debt payments and avoid default. The President has failed to address the more fundamental risk of default: unconstrained increases in entitlement spending.