Here's where I'm struggling. The raising of the limit doesn't mean that the spending automatically increases. Spending is on the Congress.

 

Why are we playing politics with such a sensitive issue? Play hardball after the limit is raised ie we can still pay our obligations and THEN have at it on spending.

By refusing any ideas that do not include tax hikes...

McConnell has flat out admitted that the Republicans are using the tax hikes as their own stalling tactic. It's a two way street.

McConnell has flat out admitted that the Republicans are using the tax hikes as their own stalling tactic. It's a two way street.

But we don't need tax hikes.. It's the run away spending thats the problem..

But we don't need tax hikes..

In your opinion (and many others)

 

It's the run away spending thats the problem..

 

Agreed, but I think it is going to take a combination of tax hikes and spending cuts, and other initiatives like spurring the economy to solve the economic issues of the US.

So how much more of your income are you willing to give to a government that has proven they can't spend it wisely?

Here's where I'm struggling. The raising of the limit doesn't mean that the spending automatically increases. Spending is on the Congress.

 

Why are we playing politics with such a sensitive issue? Play hardball after the limit is raised ie we can still pay our obligations and THEN have at it on spending.

 

It may not be be atuomatic, but they always seem to reach it and ask for a higher limit.

It is time to say no to increased spending. I have been saying that for 30 years. Under Reagan he agreed to tax increases and there were to be spending cuts, but the Dems lied and never passed the cuts.

That is why there must be spending cuts only.

You may increase income, but cutting the extra, nonsense spending is a quicker way to put your budget back in balamce.

More income for Dems just means more to spend on social enigineering, not balancing the budget.

In your opinion (and many others)

 

 

Agreed, but I think it is going to take a combination of tax hikes and spending cuts, and other initiatives like spurring the economy to solve the economic issues of the US.

 

They don't need to raise taxes, just completely overhaul the system so that what people pay, which could be significantly less, is actually a tax and not an interest free loan. Plus get rid of the welfare tax payment better known as Earned Income Credit.

Interesting article on Tax Cuts and Revenue Increases is linked here http://www.slate.com/id/2297513

There is no single-sided answer to the problem with the debt ceiling.....we cannot tax our way out of debt, nor can we hope tax cuts will increase revenue to the point of paying down the debt. Spending must be brought under control and that includes the "spending" that is done by granting tax breaks that are not needed or beneficial.

Here's where I'm struggling. The raising of the limit doesn't mean that the spending automatically increases. Spending is on the Congress.

 

Why are we playing politics with such a sensitive issue? Play hardball after the limit is raised ie we can still pay our obligations and THEN have at it on spending.

 

You are making the assumption that our government knows how to handle money. Experience has shown us that raising the debt limit to the US Government is like handing a new credit card to shopaholic.

The more I think about it the more I feel like investing in solar energy panels and other self sufficient planning such as gardening etc may be something alot of us should be considering. All it's going to take is one bad move by the shot callers and we're all gonna be in world of hurt.

This is the problem with fighting the debt ceiling: the spending has already been approved, the debt ceiling is entirely about whether the US will meet its legal obligations.

 

Having a national debate about cutting spending or raising revenues is necessary, to hold hostage the US's obligations in expenditures - most especially whether it will be a deadbeat country and fail to service its debt - is absolutely not the way to go about this and comes with perilous consequences. That is not hyperbole. If the US defaults, and that will be the eventual result if it is not approved, the US will be paying both massively higher interest rates on its debt, the dollar will be a far riskier investment than the euro, pound, or yen, and the economy will suffer a crushing blow. The ramifications of that and the prospect of recovery is utterly bleak. And make no bones about this, it is solely Congress's directive and it is the Republicans demanding promises before they will agree to the US meeting its obligations. If they want to do this during budget negotiations then that's fine, force the Democrats hand and work toward making some compromises. The debt ceiling, again, is not the venue. It was playing with fire several months ago, it's much more severe now.

Let there be no doubt that one of the core components of the world economy is the belief by everyone globally that the United States will never default on debt. If the US defaults, it will likely be the worst economic catastrophe since the depression. It is not a place to play politics. What we went through starting 3 years ago will look like a walk in the park if we don't get the debt ceiling issue resolved. Both sides have to give. There have to be spending cuts and there has to be additional revenue (tax increases).

Yesterday the Bipartisan Research Council released a Debt Ceiling Analysis that showed that even if the August 2 deadline is missed, the federal government would still have enough revenue to pay for: “all interest on Treasury securities (thus avoiding default), all Social Security obligations, all Medicare and Medicaid obligations, all Defense contractor bills, all Veterans payments, and all active duty troops, and still have almost $7 billion left over for other items....

Yesterday the Bipartisan Research Council released a Debt Ceiling Analysis that showed that even if the August 2 deadline is missed, the federal government would still have enough revenue to pay for: “all interest on Treasury securities (thus avoiding default), all Social Security obligations, all Medicare and Medicaid obligations, all Defense contractor bills, all Veterans payments, and all active duty troops, and still have almost $7 billion left over for other items....

 

You left out the part where the govt has to decide by 8.15 if they're going to pay $29B interest on previous debt.

 

In addition, another group who I have not heard of issued a report that is gloomy to say the least.

 

http://www.bipartisanpolicy.org/news/press-releases/2011/06/bipartisan-policy-center-releases-new-analysis-debt-limit