Upper limit of the national debt rose from U.S. $ 14.3 trillion to a maximum of U.S. $ 16.7 trillion
President of the United States, Barack Obama, finally adopted a new debt limit once supported the Congress, in both the House and Senate. Thus, the current U.S. to avoid debt default status (default).
According to the Associated Press, Obama signed a law that regulates the maximum limit new debt (debt ceiling) on August 2, 2011 when Washington DC, or right at the deadline the government’s debt payments to creditors. Through tough negotiations for weeks, this decision was supported by the House and Senate by voting earlier this week.
“We have done as much as possible to raise the economy of this country and bring America back to productive,” Obama said in announcing the ratification of the new debt.
BBC reveals news station, the Congress supports the U.S. government’s proposal to raise the limit on state debt, from U.S. $ 14.3 trillion to a maximum of U.S. $ 16.7 trillion. Raise the debt limit is crucial for the U.S. to support the routine financing of state and government programs, whose costs are greater. According to projections, the U.S. debt in 2011 alone could reach U.S. $ 15.5 trillion.
However, according to pressure Republicans who control the House, the government must save on the budget spending at least U.S. $ 2.1 trillion for a period of ten years. Items which must be saved will be discussed by a special commission, which will make recommendations later this year.
The following problems for the government is thinking about how to pay new debts and how to tighten the budget, as required by Congress. Obama hopes the opposition would also be willing to compromise by raising taxes, as proposed by the government, to pay the debt and budget deficit.
Problem of raising taxes continues to be a serious debate in Congress. Powered businessmen, Republicans during this objection should raise taxes. Instead, they asked the government to reduce subsidies social services and health for the people, as championed Obama administration with the support of the Democratic Party because it is considered inefficient and wasteful budget.
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