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New battle brewing over government spending

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    Lawmakers speak out on Capitol Hill

  • Duration 3:00
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Good evening I'm -- -- A new congress warning today is getting ready for a familiar fired up against a new deadline it's the way dividing government in Washington has work to work.

Not worked in recent months.

A reelected house speaker said today the American dream is in -- because of growing deficits and the national debt the senate majority leader talked about.

Thoughtful spending reductions balanced with revenue from the wealthiest in the country.

The messages could not be different today the divide is great but the fight.

It's really of the same.

Senior White House correspondent Wendell Goler has our lead story.

States against all Senate Minority Leader Mitch McConnell welcomed the new congress and presented the lawmakers with an old problem that we tackle our -- spending problem.

Or it's going to tackle.

If -- couple hours before President Obama electronically signed the tax deal -- -- keeping the nation from sliding all the fiscal cliff.

McConnell says the agreement settles the revenue debate for good with the rich now paying their fair share.

And the expiration of the payroll tax cut will mean higher taxes for three quarters of the country.

But with no significant spending cuts in the fiscal -- deal.

McConnell made clear the coming fight over raising the nation's debt ceiling is where Republicans will make their stand -- We cannot agree to increase that borrowing limit without agreeing to reforms that lower the avalanche of spending.

That's creating this debt.

In the first bush but mr.

Obama has already warned lawmakers that's a fight he doesn't intend to have -- negotiated over many things.

I -- not have another debate with this congress over whether or not they should pay the bills.

That if they've already racked up through the -- that they passed.

The last debt ceiling debate flirted with the first ever US government default that cost us a slightly lower credit rating.

Today Moody's the rating agency said it expects congress will take measures to reduce budget deficits in the next debt ceiling debate and warned quote.

The debt trajectory resulting from this process is likely to determine whether the AAA rating is returned to a stable outlook or downgraded to -- one.

Former Obama budget director Peter Orszag admits Republicans will have more leverage in the debt ceiling debate than they did in the fight over the fiscal cliff.

Ironically the government's rising debt problem comes as families are reducing consumer debt but while there's widespread agreement entitlement programs like Medicare are driving the debt.

There's less agreement on who's to blame for not fixing it.

The president but everyone in the room and looking at -- this was part of the big deal I would call Eric Cantor walked down.

And -- John Boehner walked down.

Speaker Boehner majority leader cantor say they gave up trying to negotiate with the president because he moved the goalposts on them.

We'll have all the same players and mr.

-- second term.

-- undergo -- traveling with the president in Hawaii Wendell thank you.

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