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SoCalDem

(103,856 posts)
Wed Jul 18, 2012, 10:08 AM Jul 2012

Found an interesting discussion of how republicans handled debt limit in 2005

hypocrites

http://www.godlikeproductions.com/forum1/message19858/pg1

Needs to go over 8 TRILLION!!!

I love it!!

WASHINGTON - The Bush administration announced Wednesday that it will run out of maneuvering room to manage the government´s massive borrowing needs in two weeks, putting more pressure on Congress to raise the debt ceiling when it convenes for a special post-election session.


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"Due to debt limit constraints, we currently do not have the capacity to settle our four-week bill auction scheduled to settle on Nov. 18," Timothy Bitsberger, acting assistant Treasury secretary for financial markets, said in a statement.

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The Republican-controlled Congress put off dealing with the debt ceiling before adjourning in October, preferring not to force members to vote on the politically sensitive issue of adding to the national debt before the November elections. The government hit the current debt ceiling of $7.384 trillion on Oct. 14, forcing Treasury to begin a series of bookkeeping maneuvers to keep financing the government´s normal operations without breaching the debt ceiling. But Treasury Secretary John Snow has warned that those special measures would last only until mid-November. The Treasury Department´s actions have included reducing the amount of debt in government trust funds to free up room for further borrowing from the public. The nonpublic debt is then replaced in the trust funds once the debt ceiling is increased along with any lost interest payments. Republicans have proposed that the debt ceiling be raised by $690 billion to $8.074 trillion, an amount that would get the government through next September, when the 2005 budget year ends.


The need to raise the debt ceiling reflects the record budget deficits of the past two years. The deficit for the 2004 budget year, which ended Sept. 30, was an all-time high of $413 billion, surpassing the old mark, in dollar terms, of $377 billion in 2003. Democrats blame the surging deficits on Bush´s tax cuts, while the administration contends the tax cuts provided critical economic stimulus to help lift the economy out of the 2001 recession. The administration says the president has a plan to cut the deficit in half by 2009, but critics contend that the real problems will come in later years as retiring baby boomers put unprecedented strains on Social Security (news - web sites) and Medicare.

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Found an interesting discussion of how republicans handled debt limit in 2005 (Original Post) SoCalDem Jul 2012 OP
if they do it... MrDiaz Jul 2012 #1
Instead of focusing on our debt, we need to focus on developing jobs. JDPriestly Jul 2012 #2

JDPriestly

(57,936 posts)
2. Instead of focusing on our debt, we need to focus on developing jobs.
Wed Jul 18, 2012, 11:45 AM
Jul 2012

The Republicans' argument that tax cuts help the rich create jobs has failed. So we need to try something else. Government restrictions on trade or at least a VAT that evens the tax burden on US and foreign manufacturers would be a good idea. Why should the manufacturers and laborers who produce washing machines made in the USA pay taxes to support health care and pensions and Social Security in the US, but manufacturers and laborers who produce washing machines made in China pay nothing to support those necessary social programs? It makes no sense. Europeans charge VAT at the point of sale to pay for social programs and other things. We should do the same. We should do away with some of our other taxes and charge VATs.

The difference in labor costs would still be a problem, but at least we would have a way of recouping some of the lost income for social programs that has resulted from outsourcing and importing.

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