3. CONGRESS:

House GOP considering short-term debt limit extension -- Ryan

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WILLIAMSBURG, Va. -- House Republicans are considering a short-term debt limit extension as a way to provide more time for broader negotiations between the White House and Congress to succeed, House Budget Chairman Paul Ryan (R-Wis.) told reporters here this afternoon.

The move could offer a bit of breathing room in the looming battles over budgetary matters, but the White House has already indicated that President Obama won't negotiate over the full faith and credit of the United States.

"The fact is, default is not an acceptable option here," White House spokesman Jay Carney said today. "Congress has to simply do its job and pay the bills that they've already racked up, meet the obligations that they have already made. ... The president has made clear he's not going to negotiate over raising the debt ceiling."

Experts currently predict that without a debt ceiling increase, the country could default on its bills between Feb. 15 and March 1. If that were to happen, the United States would likely be in line for a credit downgrade.

Ryan said a short-term debt ceiling extension is just one option being discussed at today's House Republican retreat as party leaders facilitate a wide-ranging conversation among members about the various fiscal deadlines that are quickly approaching. The goal, he said, is to get everyone on the same page about the mechanics and consequences of the debt ceiling issue as well as the still-looming sequester cuts that are scheduled to kick in March 1 and the end of the current budget continuing resolution in late March.

Ryan acknowledged today that it's still possible one of those fiscal issues could become a vehicle to institute a major tax code reform effort.

"That's definitely one option that's going to be discussed," he said. "Speaking as a Ways and Means [Committee] guy ... we are serious about doing tax reform this year. We think it's among the best ways to create jobs and grow the economy."

Part of fixing the tax code, Ryan said, would involve getting rid of the "crony capitalism" that exists in the current code.

"We see tax reform as an important step to grow the economy and therefore reducing debt," he said.

He added that even if tax reform isn't tied to one of the looming fiscal debates this spring, Republicans will still pursue the issue during this Congress.

E&ENews PM headlines -- Thursday, January 17, 2013

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