Posts

Lew Asks Congress for Debt Increase, Says it’s ‘Not Open to Debate’

/9 Comments/in , /by

Treasury Secretary Jack Lew on Friday urged congressional leaders to raise the debt limit and insisted that the White House is not going to negotiate over the increase because lawmakers have “no choice.”

“We will not negotiate over the debt limit,” Lew wrote. “The creditworthiness of the United States is non-negotiable. The question of whether the country must pay obligations it has already incurred is not open to debate.”

Lew said that while President Obama is willing to discuss plans to reduce the nation’s deficit with Congress, those talks must be kept separate from any effort to raise the nation’s debt cap.

Read more from this story HERE.

CBO: ‘Fiscal cliff’ Deal Carries $4 Trillion Price Tag Over Next Decade

/1 Comment/in , /by

The Senate deal to avoid the “fiscal cliff” will add roughly $4 trillion to the deficit when compared to current law, according to new numbers from the Congressional Budget Office (CBO).

The CBO determined Tuesday that the package, hammered out late Monday evening by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.) would — over the next decade — come with a $3.9 trillion price tag.

The agreement, which is pending before the House after passing in a 89-8 Senate vote early Tuesday, would extend lower tax rates on annual household income under $450,000 and postpone automatic spending cuts for two months.

The extension of lower tax rates for a bulk of the nation’s taxpayers and the addition of a permanent patch to the alternative minimum tax would add roughly $3.6 trillion to the deficit over the next decade, the CBO said. Other individual, business, and energy tax extenders would add another $76 billion. The extension of unemployment benefits would cost roughly $30 billion, and the so-called “doc fix” would tally another $25 billion through fiscal 2022.

The CBO says the budget agreement will lead to an overall increase in spending of about $330 billion over 10 years.

Read more from this story HERE.

Bait and Switch: In Face of Fiscal Cliff, Obama Demands Spending Boost for 2013

/2 Comments/in , , /by

President Barack Obama smashed a completed fiscal-cliff deal with a last-minute demand for increased spending in 2013, according to an e-mail from the GOP’s Senate leader, Mitch McConnell.

Under the deal, planned tax increases on middle-class Americans would be cancelled, but Obama insisted on raising tax rates on Americans earning more than $400,000 per year.

“They’re holding that [deal] hostage” to boost 2013 spending, GOP Sen. Bob Corker said shortly after Obama lauded the pending agreement.

“The tax piece is complete and done as of last evening at 1:45 a.m. I thought the entire deal was sealed. Early this morning, the White House called demanding that we also turn off the sequester,” said the email, signed “Mitch.”

The sequester refers to scheduled cuts in spending during the first nine months of 2013. Half of the $109 billion in cuts are to be imposed on the Pentagon.

Read more from this story HERE.