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Economics Discuss Shutdown & the Debt Ceiling at the Political Forums; Here we go again... ‘The Debt Ceiling Issue Will Get Resolved’ May 25, 2017 | On Wednesday, Treasury Secretary Steven ...

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Old 05-26-2017, 08:52 PM
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Red face Shutdown & the Debt Ceiling

Here we go again...

‘The Debt Ceiling Issue Will Get Resolved’
May 25, 2017 | On Wednesday, Treasury Secretary Steven Mnuchin called for a clean debt ceiling increase by August, but the House Freedom Caucus says it will insist that any increase in the debt ceiling be accompanied “by cutting where necessary.”
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House Speaker Paul Ryan told a news conference on Thursday: We’re talking with our members on this. Every treasury secretary says this and every treasury secretary needs to say this. And we’re going to be talking with our members and with the administration on how we’re going to resolve the debt ceiling. The debt ceiling issue will get resolved. The timing is what I think is the newsworthy thing here. (Tax) receipts aren’t quite what people thought they were, and that’s why Secretary Mnuchin is moving the timetable up. So we’re look at that new timetable. Democrats will insist on a clean debt ceiling bill, which means no “poison pill” riders that curtail future spending.

But in a statement on Wednesday, the House Freedom Caucus wrote: The U.S. federal government is drowning in debt, yet continues to spend into oblivion on the backs of future taxpayers. We have an obligation to the American people to tackle Washington’s out of control spending and put in place measures to get our country on the right fiscal course. In order to accomplish this end, the Freedom Caucus has taken a three-fold position: we oppose any clean raising of the debt ceiling, we call for the debt ceiling to be addressed by Congress prior to the August Recess, and we demand that any increase of the debt ceiling be paired with policy that addresses Washington’s unsustainable spending by cutting where necessary, capping where able, and working to balance in the near future.

The debt ceiling, or debt limit, is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. The debt limit does not authorize new spending commitments. It simply allows the government to finance existing legal obligations that Congresses and presidents of both parties have made in the past. The Treasury Department says failing to increase the debt limit would have catastrophic economic consequences, causing the government to default on its legal obligations.

Ryan: ?The Debt Ceiling Issue Will Get Resolved?
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Old 05-31-2017, 03:02 AM
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Angry Re: Shutdown & the Debt Ceiling

Granny says, "Dat's right - the sky is fallin'...

Duck! Treasury will hit the debt limit soon unless Congress votes to raise it
May 30, 2017 • As Congress deals with battles over health care legislation and the budget this summer, it is looking more and more likely that a fight over raising the country’s debt ceiling will be added to its agenda.
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The debt ceiling is a cap on how much the U.S. Treasury can borrow to pay for government expenses, and it can only be altered by an act of Congress. Lawmakers had been hoping they could put off dealing with it until the fall. But key figures within the Trump administration are asking Congress to take action as soon as next month, saying that tax revenue has been less than expected. The Treasury Department’s power to actually borrow money ran out in March, and it has been operating since then with its cash on hand. “We need to make sure we raise our debt ceiling to pay our debts,” Treasury Secretary Steven Mnuchin told a House subcommittee last week. “My understanding is that the receipts currently are coming in a little bit slower than expected, and you may soon hear from [Mnuchin] regarding a change in the date,” Mick Mulvaney, director of the Office of Management and Budget, told a separate House panel.

Republicans have acknowledged the need to raise the debt ceiling but are hesitant to commit to a vote before they recess in late July. “We have to do it. We can’t let the government default,” Sen. Orrin Hatch, R-Utah, told Politico. A vote on the debt limit could be another headache for Republican leadership, however, as it comes in addition to other hotly contested policy debates. House Speaker Paul Ryan, R-Wis., and Senate Majority Leader Mitch McConnell, R-Ky., will have to reconcile vastly different views on the topic within their caucuses.


Senate Majority Leader Mitch McConnell, center, arrives to talk to the media in Washington on May 23

This is because the most conservative members of the House, known as the Freedom Caucus, have already signaled that they will demand spending cuts as part of any bill to raise the debt ceiling. Other Republicans, as well as most Democrats, want what is called a “clean” increase with no strings attached. “We oppose any clean raising of the debt ceiling, we call for the debt ceiling to be addressed by Congress prior to the August Recess, and we demand that any increase of the debt ceiling be paired with policy that addresses Washington’s unsustainable spending by cutting where necessary, capping where able, and working to balance in the near future,” the caucus wrote in an official statement.

Widespread opposition from the most conservative members of the caucus could force Ryan and McConnell to seek Democratic help in pushing a bill to passage. Some measure of bipartisan support will already be required to clear the 60-vote threshold to squelch a filibuster in the Senate, since Republicans have only 52 members in that house. While Democrats in both the Senate and House routinely voted to raise the borrowing limit under President Barack Obama, some members are indicating that they will look to use their leverage to get policy concessions from across the aisle. “We should consider what additional conditions we might want to consider imposing,” Sen. Richard Blumenthal, D-Conn., told Politico.

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Old 06-30-2017, 11:24 PM
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Angry Re: Shutdown & the Debt Ceiling

Debt climbs faster than tax revenue to pay for it...

CBO: Income Taxes Up 9.5% Next Year; But Debt Climbs More Than $1 Trillion
June 29, 2017 - Unless current laws are changed, federal individual income tax collections will increase by 9.5 percent in fiscal 2018, which begins on Oct. 1, according to data released today by the Congressional Budget Office.
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At the same time, however, the federal debt will increase by more than $1 trillion. In fiscal 2017, which ends on Sept. 30, the federal government will collect $3.315 trillion in total taxes, according to the projections the CBO released with its "Update to the Budget and Economic Outlook: 2017 to 2027." That $3.315 trillion in total taxes will include $1.574 trillion in individual income taxes; $1,164 trillion in payroll taxes; $310 billion in corporate income taxes; and $267 billion in other taxes.


In fiscal 2018, according to CBO’s projections, total taxes will climb by to $3.531 trillion. That will include $1.724 trillion in individual income taxes; $1.195 trillion in payroll taxes; $324 billion in corporate income taxes; and $289 billion in other taxes. The $1.724 trillion in individual income taxes CBO projects the federal government will collect in fiscal 2018 is $150 billion—or 9.5 percent—more than the $1.574 trillion CBO projects it will collect this fiscal year.


The $3.531 trillion in total taxes the federal government will collect in fiscal 2018, according to CBO’s projections, is $216 billion—or 6.5 percent more—than the $3.315 trillion CBO projects it will collect this year. Despite these projected increases in federal tax collections from this year to next, the CBO also sees a massive increase in the federal government’s debt next year. According to CBO’s projections, the gross federal debt will rise from $20.188 trillion at the end of fiscal 2017 to $21.221 trillion at the end of fiscal 2018. That is an increase of $1.034 trillion.


CBO: Income Taxes Up 9.5% Next Year; But Debt Climbs More Than $1 Trillion
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Old 08-16-2017, 11:25 PM
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Default Re: Shutdown & the Debt Ceiling

Not much new here... The do nothing Congress will just kick the debt can down the road a little further.

As long as they get their paychecks and benefits.
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