Debt limit deadline now seen at end of 2015

A stronger than expected tax season will give policymakers more time to haggle over an increase to the debt limit, according to new analysis.

An unexpected influx of revenue means that the nation is not expected to be at risk of a catastrophic default until November of December of 2015, after the Bipartisan Policy Center had previously pegged the deadline as sometime in the late summer or early fall.

The 2015 tax season closed with the government bringing in roughly $40 billion more revenue than originally anticipated, which likely will buy the government a bit more time under the existing cap before the Treasury Department will no longer be able to pay all of Uncle Sam’s bills.

{mosads}Previously, the Congressional Budget Office had estimated that the U.S. would need a borrowing boost likely in October or November, but with the revenue boost, the Bipartisan Policy Center scrapped the earlier part of that window.

At the same time, the group noted that there still is “substantial uncertainty” over timing, and the potential deadline could move forward or back as time progresses and a clearer picture emerges.

In March, the federal government was again subjected to an $18.1 trillion borrowing cap, forcing the Treasury Department to begin employing its set of “extraordinary measures” to free up room under that ceiling.

Leaders from both parties have emphasized that there is no interest in putting the nation at the risk of a disastrous default, but the GOP-led Congress and the Obama administration still remain far apart on many fiscal issues, and in fact whether to include outside policy measures with a borrowing increase.