Wednesday, July 6, 2011

Obama’a meeting with Congressional senior leader over debt issue

US president Barack Obama has explained Democratic and Republican representatives to the White House on Thursday for talks on elevating the country's debt ceiling, as a target for action looms.

The government jeopardizes non-payment on its debt if Congress does not ratify more borrowing authority by 2 August.
Republicans say they deny thinking raising taxes, while Democrats expect to safe favored social programs.
It is not clear how close the both ends are to a deal.
"I consider that right now we have an exclusive chance to do something exceptional," the president said during a news conference on Tuesday.
"This will necessitate two parties to obtain out of their comfort zones."
President Obama said he expected the White House and US representatives would reach of accord on debt within two weeks.
The president said he expected the meeting on Thursday will "make on the work that's already been done and drive toward a ultimate accord.
But House of Representatives Speaker John Boehner said he "questions the worth of the meeting", according to an adviser for the Republican leader.
Mr. Obama said he contrasted any endeavors to "kick the can down the road" with a short-term enhance to the nation's borrowing limit, as some representatives have advised.
He added that any accord over the debt must contain not only spending cuts but also tax amplifies, which Republicans have already ruled out.
At present the US runs an expected $1.5 trillion (£932bn) annual budget deficit, and has already gone beyond the national debt limit of $14.3tn.
The government's borrowing authority is limited by statute.
Historically, Congress lifts the debt limit as a matter of routine, but this year a newly authorized faction of conservative, anti-tax Republicans are keen to remove dramatic cuts in government expenditure as the price of raising the limit, analysts say.
Mr. Obama said Republican and Democratic representatives had recognized $1tn in spending cuts.
And he advocated negotiators to think scaling back tax breaks that advantage wealthy individuals, including low income tax rates for hedge fund managers, benefits for corporate jet owners and financial assistance for oil and gas companies.
"It would be pleasant if we could keep every tax rupture, but we can't afford them," he said.
"Because if we select to keep those tax breaks for millionaires and billionaires... then we'll have to make even bigger cuts somewhere else."
Republican Senator Dan Coats of Indiana said on Saturday that dropping spending was the main to reaching a debt ceiling accord.
"The president and Democrats in Congress must known that their game plan is not functioning," he said.
"It's time to accept that more government and mount taxes are not the answer to our problem. It's time for daring action and a new plan to address our present crisis."
While congressional Republicans remain set against raising taxes, in recent days some senior Republicans have pointed out they might think cutting alleged tax spending- loopholes in the tax code and financial support for special interests.
Last week, Mr. Obama and Vice-President Joe Biden met Senate leaders of both parties, after Republican leaders of the House of Representatives walked out of debt talks.

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