Monday, June 27, 2011

US lawmakers at odds over debt crisis



US President Barack Obama

Source: Press TV
http://www.presstv.ir/detail/186393.html

US Republican and Democratic lawmakers are at loggerheads on how to deal with the country's overflowing 14-trillion-dollar debt.

Ahead of scheduled meetings between both parties and US President Barack Obama on Monday, the only three options on the table for discussion remain to be raising the debt limit, increasing taxes, and cutting spending on public services, AFP reported.

Treasury Secretary Timothy Geithner has warned lawmakers that if the US does not take the necessary steps by August 2, the country will be at a risk of defaulting on its loans.

The meetings come as Republicans walked out from talks regarding the issue, in protest to the idea of raising taxes for the nation's wealthiest.

"I wish they (Republicans) would get beyond their talking points and really get honest with the American people as to what these discussions are about," Democratic Congressman James Clyburn said.

"We ought not [to] have these oil subsidies. We ought not [to] have all these ethanol subsidies. We ought not [to] have all these new breaks for millionaires and billionaires. We ought to be honest with the American people and have an effective tax rate that will be fair to everybody," he added.

Republican Senate Minority Leader Mitch McConnell, on the other hand, says the country should “cut spending now” as the US is heading towards bankruptcy, according to “president's own trustees”.

“Republicans don't like to raise taxes; Democrats don't like to either,” McConnell noted, adding that the US does not have a problem with low taxes, but that the problem is high spending.

He also stated that his rival Democrats are willing to cut the Medicare health coverage spending for the elderly, adding that such measures could pass at the US House of Representatives.

The White House, however, claims that Republicans are merely looking for ways to secure the current tax loopholes for the rich and corporations, as well as maintaining the subsidies for oil and gas companies.

Earlier in month, Republican-controlled US House of Representatives turned down a draft bill intended to raise the country's borrowing limit, which currently stands at the whopping USD 14.3 trillion.

Experts, however, insist that failure to increase the debt limit could be devastating for the US and other economies around the world.

As US lawmakers continue heated arguments on whether to cut spending for public services such as education and elderly healthcare, increase taxes or raise the borrowing level, they have authorized the US government to spend tens of billions of dollars to engage in military invasion of other countries.

No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russian / Ukraine War - (Mar 08th, 2024)

How the Ukraine War Changed the World - (Mar 01st, 2024)

Redacted - Egypt's betrayal of Palestine - Vanessa Beeley

CrossTalk | Magical thinking - (Feb 28th, 2024)

Hillary Clinton Interrupted & Called Out in Berlin

We don’t want war with Israel, but if they impose it on us, we are ready – Hezbollah

ICJ delivers ruling in favour of South Africa

ICJ ruling | Court stops short of ordering Gaza ceasefire, demands that Israel prevent genocide

South Africa's Closing Argument Against Israel for Genocide at the ICJ

Wider Middle East war. US, UK strike Yemen

U.S., UK Start Another Unwinnable War In Yemen

Geopolitical Storm Brewing from Palestine to Ukraine

How the US Global Order is Challenged - With Pepe Escobar (Nov 20, 2023)

Shahid Bolsen - Message to the Israeli people

Roger Waters - To Whom It May Concern: Please Stop.

US policy slowing down China's economy w/ Jeffrey Sachs

Max Blumenthal s destroys RFKJr's outrageous Israelí Propaganda

Totalitarianism, Censorship and Syria with Peter Lavelle, Vanessa Beeley & Kevork Almassian

Putin shows treaty on Ukraine’s neutrality, signed by Kiev but dumped under Western pressure

Assad's speech at the Arab League Summit - what it means for the future of the region

Assad returns to Arab League

HUGE China brokered deal, Iran & Saudi Arabia restore diplomatic ties

Nord Stream pipeline & sabotaging peace w/Jeffrey Sachs

The Tragedy of Ukraine

Historical Events that Led to the Start of the Ukraine Conflict

Your Wars Will Destroy the Planet - Roger Waters

Healthy Athletes suffer Heart Problems After Getting the Jab