UPDATE 1-Cantor: US debt limit debate due after April 15

Wed Mar 2, 2011 4:54pm EST

* Republican leader Cantor says waiting on tax numbers

* Treasury says debt ceiling could be reached on April 15 (Recasts lead, adds quote by Cantor spokeswoman and details)

By David Morgan

WASHINGTON, March 2 (Reuters) - The Republican-controlled House of Representatives will hold off on raising the government's debt limit until Washington is closer to exhausting its $14.3 trillion credit line, sometime after mid-April, party leader Eric Cantor said on Wednesday.

There is often a pitched battle in Congress over allowing the government to borrow more money, but if Congress does not take that step, Washington risks a default on its debt that could damage U.S. access to credit markets, force suspension of government payments, and close federal offices.

The U.S. Treasury Department estimates the debt ceiling could be reached between April 15 and May 31.

"We really don't know exactly when the date will be that we'll have to act," Cantor said on MSNBC's "Morning Joe."

"You know, we're waiting for April 15 and tax revenues to indicate exactly when the date is that the ceiling needs to be raised," he added. The must-pass debt limit increase may be leveraged to rein in future spending, Cantor noted.

Cantor spokeswoman Laena Fallon later said the majority leader was not suggesting the House would act on April 15, a date both symbolically important to tax-conscious Republicans and practically important to the U.S. Treasury as the deadline for income tax payments.

"April 15th isn't a date certain for consideration of the debt limit. But the revenues that come in from tax day will provide a good indicator in relation to when Treasury might determine when we will reach the debt limit," she said.

Some Republicans, including Tea Party conservatives, have said they will not vote to allow the United States to go deeper into debt without agreement on controlling spending with Obama and Democrats.

"Along with that vote, we're going to see a lot of things put in place, whether they be process reforms as far as the budget is concerned, spending caps, whether we can demonstrate that we are tightening the belt this fiscal year," Cantor said.

"Those are all the kinds of things we're going to have to do prior to seeing that that vote happens," he added.

The Republican-run House has passed a budget bill for the current fiscal year that includes $61 billion in spending cuts, but the majority Democrats in the Senate say the cuts would endanger the economic recovery.

A debt limit increase would also have to be approved by the Senate and signed by President Barack Obama. (Editing by Jackie Frank)

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