tattoo empek empek: [New post] Daily CFR.org Roundup: Debt deal stalls over taxes

[New post] Daily CFR.org Roundup: Debt deal stalls over taxes

Daily CFR.org Roundup: Debt deal stalls over taxes

amarcnn | July 11, 2011 at 9:36 am | Tags: CNN Editors | Categories: Daily Roundup | URL: http://wp.me/p1bJgh-258

Editor's Note: The following is reprinted with the permission of the Council on Foreign Relations.

U.S. Speaker of the House of Representatives John Boehner abandoned plans (NYT) to continue negotiating a broad deficit-reduction plan with President Barack Obama--designed to reduce spending by $4 trillion over ten years--in the face of fierce opposition from fellow Republicans over a potential rise in tax revenues.

A meeting at the White House yesterday ended in a stalemate, as Republican congressional leaders pushed for ascaled-down budget package (WSJ) that would include $2 trillion in savings over the next ten years, absent the $1 trillion in tax increases for which Obama continues to argue.

A deficit-reduction agreement is essential for Congress to move ahead with raising the nation's debt ceiling ahead of an August 2 deadline. U.S. Treasury Secretary TimothyGeithner warned yesterday (WashPost) that if a compromise to raise the debt ceiling is not reached in time, the U.S. could default on its debt obligations, severely damaging the domestic and global economies. Similarly, IMF Chief Christine Lagarde warned that a failure to raise the debt limit could trigger interest hikes (AP) and see "stock markets taking a huge hit." Read more of this post

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