Republican And Democrat Plans To Raise Debt Ceiling Revealed

by San Antonio Attorney

Republicans and Democrats in the U.S. House of Representatives revealed rivaling plans on Monday to cut down enormous amounts of federal budget in order to raise the debt limit and avoid a default on August 2.

The Republican’s proposal was revealed by House of Representatives Speaker John Boehner. Their plan is to increase the debt limit by $1 trillion before the end of the year, as well as allow a higher limit in the following year. The Congress would be required to pass reductions to the U.S. benefit programs such as Medicare insurance for the aged people and farm financial aid. Budget for domestic agencies will be decreased by $1.2 trillion over the next 10 years. The Republican plan would put together a special panel of lawmakers to suggest cutbacks for a Congress vote by the end of the year.

President Barack Obama has promised to prohibit any plan that did not adequately raise the debt limit to get it out of the agenda until the 2012 election is over.

As Boehner lay out their plan, a press conference was called by Senator Harry Reid to announce the Democrat’s plan.

The Democrat’s plan would cut down $2.7 trillion in spending and lift the debt ceiling by $2.4 trillion in a single step – to give sufficient borrowing power to fulfill the president’s bottom-line requirement. The cutbacks consist of $1.2 trillion from hundreds of government programs. It would also yield $1 trillion in savings that they assume would come from the end of the wars in Afghanistan and Iraq. Also, a special joint congressional committee will be created to propose further savings with an assured vote by lawmakers before 2011 ends.

The Republican and Democrat plans did not include further tax revenues, which Obama had set as a condition for any plan to cut federal spending. Nevertheless, White House press secretary Jay Carney released a statement calling the Democrat’s proposal ‘a responsible compromise’.

President Obama still wanted a plan that would cut deficit and sizable spending that includes more tax revenues.  Such revenues would come from the wealthy and corporations, which have to help stabilize the long-term debt by paying more, said the president.

Our representatives are trying to come up with solutions to improve are economy, but this will take time.  If you are no longer able to pay your bills, and as a result debt keeps accruing on credit cards.  It may be a good time to look into a San Antonio Bankruptcy.

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