Late Thursday afternoon the White House and House Speaker John Boehner office both said reports of a possible deal are not true.
Washington, D.C. –
Word has been slipping out that a deal on raising America’s debt ceiling and reducing the debt is in the works in order to avoid a government default, which has never happened before, on the nation’s debt.
The plan would involve an immediate rise to the nation’s debt ceiling, plus cuts to various programs, closing tax loopholes, while slowing the integration of entitlement program reforms to Social Security and Medicaid. It would also permanently extend the Bush-era tax cuts for people making less than $250,00 per year, but raise taxes on those earning more over a period of time.
Some of the measures will take years to fully implement, but once done, would ax over $3 trillion in spending, while having a higher debt limit, which would reduce the nations debt-to-income ratio.
Currently, the government borrows $0.40 of every $1 it spends and the debt is over $14.5 trillion.
Partisan politics continue with no signs of abating, both sides hoping to cash in on any deal and an achievement for them. It would seem this deal allows both to say they won. However, the Tea Party House Representatives are not happy with the deal because it raises taxes, something they have vowed to stop. It remains unclear whether they have enough votes and support to stop a deal from being approved. Democrats and some center/moderate Republicans support it.
Opinion polls show a clear majority of all Americans and of likely voters blame Republican for the gridlock over the debt drama. How the Tea party will fare in the 2012 general elections among Republican voters could be deduced by who is getting the blame among polled Republican voters.
Democratic voters have been howling about possible cuts to entitlement programs, but also say compromise is necessary.