Chip Somodevilla/Getty Images
Chip Somodevilla/Getty Images

Though the fiscal cliff has been averted, Democrats and Republicans are preparing for the next possible budgetary impasse: raising America's borrowing limit, reports the New York Times.

Democrats have warned Republican leaders not to use the debt authorization for political leverage. In his weekly address, President Obama again said he would not trade spending cuts for an increase in the debt limit.

"One thing I will not compromise over is whether or not Congress should pay the tab for a bill they've already racked up," he said. "If Congress refuses to give the United States the ability to pay its bills on time, the consequences for the entire global economy could be catastrophic."

Mr. Obama also repeated his new demand that future spending cuts be met with commensurate tax increases. "Spending cuts must be balanced with more reforms to our tax code," he said. "The wealthiest individuals and the biggest corporations shouldn't be able to take advantage of loopholes and deductions that aren't available to most Americans."


Read more at the New York Times.

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