White House debt talks collapse

[Gerald]

Top Republican John Boehner and leading Democrat Harry Reid are tweaking their budget plans after nonpartisan analysts said their sums did not add up.

The US Congressional Budget Office (CBO) said neither Mr Boehner's plan nor Mr Reid's would cut the deficit by as much as they had both estimated.

House Republicans have been meeting behind closed doors to discuss the Boehner plan.

Mr Reid said Mr Boehner's proposal could not pass the Senate.

The US runs a budget deficit that topped $1.5tn (£920bn) this year, and has amassed a national debt of $14.3tn.
'No off-ramps'

Lawmakers have been locked in weeks of bitter negotiations over raising the US borrowing limit by the deadline of 2 August.

The bill proposed by Mr Boehner was being rewritten on Wednesday after the CBO said it would cut spending less than had been advertised - about $850bn over 10 years, rather than $1.2tn.

Republicans planned a House vote for Thursday on the reworked plan.

Mr Reid's office told the BBC the Senate majority leader was also revising his plan after the CBO said the proposal would cut $2.2tn from deficits, about $500bn less than had been claimed.

Mr Reid has not said when his bill would reach Congress for a vote.

The White House warned on Wednesday that time was quickly running out to reach a compromise on the US debt limit.

"That deadline is hard and fast," White House spokesman Jay Carney said of next Tuesday's expiry date on the debt ceiling.

"People keep looking for off-ramps. They don't exist," he added.

http://www.bbc.co.uk/news/world-us-canada-14318377


Note: Update Record,27 July 2011 Last updated at 19:14 GMT

[Gerald]

A revised Republican bill to raise the US debt ceiling, cut spending and avert a federal default is set for a crunch House of Representatives vote later.

But House Speaker John Boehner's bill faces a conservative revolt, unanimous opposition by Senate Democrats and a White House veto threat.

Republicans hold 240 of the 433 votes to be cast, and need 217 of their members to back the bill to pass it.

Mr Boehner told dissenting colleagues on Wednesday: "Get your ass in line."

The US Treasury has warned the government will run out of money to pay all its bills unless a $14.3tn borrowing limit is increased by next Tuesday.



Mr Boehner's plan would trim $917bn from the US budget deficit over 10 years and raise the debt limit by up to $900bn.

President Barack Obama supports another plan by top Senate Democrat Harry Reid, which would cut $2.2tn from deficits, and raise the debt ceiling by $2.7tn.

But that is thought unlikely in its current form to pass the Republican-controlled House.

Both Republican and Democratic plans underwent revisions on Wednesday after congressional budget analysts said the savings advertised by each one had been overstated.

The Boehner and Reid plans overlap in key ways - trimming spending over 10 years, shunning President Obama's call for tax increases on the wealthy and creating special lawmaker committees to craft future cuts.

But Mr Boehner's approach would force another debt-limit showdown during next year's presidential campaign, something Mr Obama has fiercely opposed.

Senate Majority Leader Reid's plan would see the ceiling lifted until after the November 2012 elections.

http://www.bbc.co.uk/news/world-us-canada-14328183


Note: 28 July 2011 Last updated at 14:07 GMT

[Tchocky]

Great Leonhardt piece - http://www.nytimes.com/2011/07/27/bu...s-malaise.html

The place where economic knowledge gets murkier is how to best deal with many of our biggest problems.

We cannot know, for example, what would happen if the government raised taxes to cut the deficit. A moderate increase seems unlikely to do much damage to economic growth, given that the increases by George H. W. Bush and Bill Clinton did not prevent the 1990s boom — and that George W. Bush’s tax cuts were followed by mediocre growth. All things equal, though, tax increases do not lift growth.

The basic point has been lost that while raising more revenue from taxes isn't going to automatically solve anything, it won't be catastrophic to the economy either. That's why it breaks my mind to hear politicians referring to a minor revenue increase as "JOB-KILLING".

[Gerald]

A Republican bill to raise the US debt ceiling, cut spending and avert default on US debt is set for back-to-back votes in the House and Senate.

But House Speaker John Boehner's bill faces a conservative revolt, unanimous opposition by Senate Democrats and a White House veto threat.

Ahead of the votes, Republicans challenged Democrats to back the bill or take political blame for default.

Congress must raise the US debt limit by a deadline of next Tuesday.

http://www.bbc.co.uk/news/world-us-canada-14328183



Note: Update Record,28 July 2011 Last updated at 19:49 GMT

[Jimbuna]

Cut and paste rules

[Gerald]

Originally Posted by jimbuna

Cut and paste rules

THANKS A very respectfully, sir, but here it is that the news is need to kept up to date, and then it works hand in force and not "cut and paste".... but on the other hand, no one reads anyway ....

[Jimbuna]

Originally Posted by Vendor

THANKS A very respectfully, sir, but here it is that the news is need to kept up to date, and then it works hand in force and not "cut and paste".... but on the other hand, no one reads anyway ....

Of the latter part you are mostly correct

[mookiemookie]

Originally Posted by Tchocky

Great Leonhardt piece - http://www.nytimes.com/2011/07/27/bu...s-malaise.html




The basic point has been lost that while raising more revenue from taxes isn't going to automatically solve anything, it won't be catastrophic to the economy either. That's why it breaks my mind to hear politicians referring to a minor revenue increase as "JOB-KILLING".

You're right. Absolutely brilliant piece. Shame that most people can't see the forest for the trees.

[Gerald]

Nothing unusual in other words.

[Armistead]

Doesn't matter what they do, it will all change in 4 years and we'll be in a bigger mess with both still blaming.

[Gerald]

but they must understand the meaning of the word, compromise, and there certainly a political expression.