The 2011 debt limit standoff will cost taxpayers $18.9 billion in higher interest payments over the next decade, according to a new analysis from the Bipartisan Policy Center.
The center also warned that the country is expected to his its borrowing limit in February, a bad month for the federal government because taxpayers will be filing for income tax refunds. Additionally, the Treasury Department will have fewer “extraordinary measures” at its disposal to maneuver around the debt ceiling, which means a shorter grace period for Congress, the report stated.
“Last year we were lucky because we had months that were pretty predictable because we didn’t have a huge outflow of money,” said Steve Bell, senior director of economic policy for the Center and co-author of the study. “This time we aren’t so lucky.”