US Politics: Debt Debate 2011

Currently, in our country we are in a national crisis.  We have been able to raise the debt ceiling in the past 77 times.  President Obama is doing something to actually prevent this from happening again.  He said in his address to the people, that if we raise the debt ceiling we are only postponing it from happening again for six months.  He then commented, 

"Understand –- raising the debt ceiling does not allow Congress to spend more money.  It simply gives our country the ability to pay the bills that Congress has already racked up.  In the past, raising the debt ceiling was routine.  Since the 1950s, Congress has always passed it, and every President has signed it.  President Reagan did it 18 times.  George W. Bush did it seven times.  And we have to do it by next Tuesday, August 2nd, or else we won’t be able to pay all of our bills."    

President Obama told the nation what would happen if we didn't raise the debt ceiling.  The government would not be able to pay Social Security checks, veterans' benefits, and contracts that the government has signed with businesses.  If you do not receive Social Security checks, veterans' benefits, or have a contract with the government for your business you will still be affected.  Our country's credit rating would decrease and investors would second guess the United States.  Interest rates would heighten on mortgages, car loans and credit cards.  So it would become harder for us to pay for the mortgage on our houses because it would constantly be rising.  The same for car loans and credit cards.

There are two different approaches that have been suggested in order to raise the debt ceiling and prevent it from happening again.  

Approach One

President Obama believes that we should make "historic cuts in government spending."  He believes that these cuts involve thoroughly decreasing spending in the Pentagon, get rid of the waste in the Medicare program, and ask the wealthiest Americans to give up their tax breaks and tax deductions.  President Obama said that this approach was bipartisan.  Bipartisan means that both parties had a say in the approach and the ideas of both parties are combined into this approach.  Speaker of the House John Boehner and President Obama have worked together on this approach.  This approach is not being accepted because several Republicans disagree with one large piece in this approach.

Approach Two

The second approach is what the Republicans in Congress believe is the better way to solve the problem.  They believe that wealthier Americans should not give up any tax breaks or tax deductions.  This is a cuts-only approach.  President Obama believes that this approach would place a greater burden on American families because no one at the top of the "income level" would be contributing.  

President Obama told the leaders of both parties that they must reach a compromise and create an approach that will solve the problem that they will both agree on.  

To read President Obama's address: http://www.whitehouse.gov/the-press-office/2011/07/25/address-president-nation

My opinion is that I believe that the wealthy should give up their tax breaks and deductions.  They don't need deductions!  They don't need a break!  There is a majority of families in the United States that make under $250,000 a year and the majority needs the break.  We need the deductions!  If the wealthy are taxed the same amount that we are taxed they will still be wealthy.  If a standard working class family continues paying these taxes they will eventually hit a bump in the financial road of life and will struggle paying for college, food, housing and other necessities.  Republicans believe that the wealthy will invest in the expanding businesses (which they believe will eventually create jobs) if we give them these tax breaks and deductions.  They believe if we do tax them, then the wealthy will be discouraged in starting or expanding businesses.  Well, here is a little logic for you, is the amount of investments that they wealthy have made, worth the tax breaks and deductions?

Approach Three?

Speaker of the House, John Boehner, has created a plan called the Cut, Cap, and Balance Act.  On the website of this approach, this is what is states as this "act."

1. Cut - Substantial cuts in spending that will reduce the deficit next year and thereafter.
2. Cap - Enforceable spending caps that will put federal spending on a path to a balanced budget.
3. Balance - Congressional passage of a Balanced Budget Amendment to the U.S. Constitution -- but only if it includes both a spending limitation and a super-majority for raising taxes, in addition to balancing revenues and expenses. 

  Out of 100 senators, 40 sponsor this.  40%

115 house members, out of 435 sponsor this.  26.44%

183 groups support this,  80 of these are tea party advocates.  43.72%

Out of 37 presidential candidates, including interested candidates, 9 support it. 24.32%

Out of 56 governors, 5 support it.  8.92%

12 senators, support it. 12%

39 house members support it.  8.97%

28 of 33 candidates for the U.S. Senate support it 87.5%

240,804 U.S. citizens out of 311, 863,921 support it. .077%

If I have any more information or anything worth posting about this, I will post as soon as possible.