The Debt Debate

By: Joel Brown - CBS News Email
By: Joel Brown - CBS News Email

Senate Democrats are considering canceling next week's holiday recess in the wake of President Obama's public scolding.

President Obama says:

"They're in one week, they're out one week, and then they're, they're saying 'Obama's gotta step in' - you need to be here! I've been here."

Wednesday, he blasted lawmakers for planning to skip town without reaching an agreement on raising the debt limit.

The President called on Republicans to accept tax increases as part of the deal or risk the devastating consequences.

"August 2nd we run out of tools to make sure that all our bills are paid. "

He said even his daughters get their homework done ahead of time.

"They don't wait til the night before, they aren't pulling all nighters. Congress can do the same thing."

But after the news conference, republicans dug their heels in even more. They accused the president of shirking his responsibilities and trying to force them into raising taxes.

Senator Orrin Hatch (R) Utah says:

"We know that if we increase taxes this bunch of democrats in Washington will spend every dime of it without cutting back on the things that really deserve to be cut back on."

Despite the stalled debate, some economists believe a true default is unlikely. Still, Treasury Secretary Tim Geithner has warned even the uncertaintly of one could do just as much harm.

Economist Peter Morici says:

"He's convinced that the world's gonna come to an end. Well if you do that with financial markets it happens."

But President Obama is hoping it won't come to that confident both sides will find a way to meet in the middle.

While some senators say they'll most likely have stay in Washington next week, canceling the recess altogether could be difficult. Many lawmakers already have trips planned and obligations in their home states.

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  • by anon on Jul 1, 2011 at 01:15 AM
    in reply to Elmo: Do you realize that every person in America, including children, would have to write a check for $45,000 plus to bring the current debt under control. Don't know how you blame this mess on the Bush Tax Cuts for Americans that actually pay Federal Taxes every year? Did you know that more than 50% of Americans do NOT pay any federal taxes and a large amount of Americans actually get free money every year at tax time because of EICC? Why not have ALL Americans pay taxes to contribute to the Federal budget. We need implementation of a FLAT TAX. BTW Pres. Obama has increased the Federal Debt in fy2009 to the highest level comparative to GDP in forty years!! Wake up America.... It has come down to the workers against the non workers. The Government workers against the Private Sector. What sad times!
    • reply
      by Elmo on Jul 1, 2011 at 12:06 PM in reply to anon
      Do YOU realize that we have so much debt because the top earners have not paid their share of taxes in years? Not to mention the trillions of dollars we have spent on two pointless wars. Do YOU realize that the Bush tax cuts were supposed to be temporary and were meant to stimulate job growth? So eliminating the Bush tax cuts is only raising taxes to where they used to be. BTW I'm not a fan of Obama or ANYONE in Washington. They are all greedy self serving buffoons. You think a congress comprised of millionaires that vote to extend tax cuts for the rich really have your interests in mind?
      • reply
        by anon on Jul 3, 2011 at 06:34 PM in reply to Elmo
        ELMO: The more money the politicans get the more they spend, spend, spend. We have a spending problem not a revenue problem. Go research the facts.. Why don't you just change your name to Elmo the "socialist?" Top earners are the people paying the taxes for ALL Americans for the Federal budget and that is money they earned and it doesn't belong to the Government. I guess the top earners(upper middle class and above) should just sign their paycheck over to Elmo? Did you know the extension of the Bush tax cuts was because of an agreement from Pres. Obama to extend unemployment benefits for two years. I agree that we need to get our troops home, as of yesterday but America had no choice but to counter respond to the attack on Sept. 11th. Did you know that the "war" in Libya has already cost us over 1 BILLLION dollars. You conveniently didn't mention that in your criticism of spending on wars. Do you think politicians who want the Government to control and spend the people's money instead of the people who earned the money is in YOUR best interest. Greece would be a good place for you to visit to see how socialism does NOT work.
  • by William Location: San Diego on Jun 30, 2011 at 01:03 PM
    The way I see it is simple, the Republicians and Tea Party members are a bunch of paid mercenaries by corporations, who's interest is to make money and doesn't care who suffer as long as it not theirs family. These politicians should be ostracized with contempt as same as the Talibans, theirs ideology is the same----- to destroy America. The difference is these politicians are homegrown and wear suits and pantsuits. Same Same
    • reply
      by anon on Jul 1, 2011 at 01:21 AM in reply to William
  • by 57 Nole Location: Tallahassee on Jun 30, 2011 at 08:32 AM
    Dear Senator Hatch In case you haven't been told, the Republicans control the House of Representatives and can stop any spending bill by simply voting NO and killing the bill. Oh, I see, your Alzheimer disease kicked in and you never heard of the House of Representatives.
  • by ga. Location: ga on Jun 30, 2011 at 08:05 AM
    lets go broke and just start over !!!!! chapter 11 sounds good to me. tired of working my a#@ off for low lifes that want a hand out. as far as the gov. you are a joke its only about parties, its not whats good for the country anymore.. FEDeral government is run by wallstreet and they have ruined this country, ITS TIME TO TAKE BACK OUR COUNTRY PEOPLE....WAKE UP CAUSE ITS ONLY GOING TO GET WORST !!! its time to elect people who are just hard working folks into office. politicians are the problem...FILE BANKRUCY AND LET IT ALL GO TO HELL.......BETTER YET LET ALL THE ILLEGAL MEXICANS START PAYING TAXES
    • reply
      by Anonymous on Jun 30, 2011 at 12:52 PM in reply to ga.
      The flat (fair) tax would get all the Mexicans, as well as all the other immigrants (illegal or not) paying taxes. If the U.S. defaults the effects not only to the U.S., but to many other countries will be devastating. The world does not want the U.S. to default because we give too much away.
  • by Mindless Location: Tallahassee on Jun 30, 2011 at 07:48 AM
    Most of the posters here are clueless to the truth. The tax rate for the wealthy is higher right now than in the 80's and 90's. And there are no Big Oil Subsidies, only tax incentives. This president has no idea what he is doing, he has painted himself into a corner, and has not more parlor tricks in his bag. His strategy now is to keep telling us everything is ok and hope you believe it, and some of you still buy into the propoganda.
  • by dog Location: gone on Jun 30, 2011 at 06:53 AM
    They are not giving up anything they will be off Sat Sun and MONDAY and come back Tu. Like the rest of us . They should stay till they get it fixed. YOU CAN'T SPEND YOUR SELF OUT OF DEBT. STOP SPENDING.
  • by A on Jun 30, 2011 at 06:52 AM
    Obama says he has been there! I guess he means between golf games and vacations.
  • by Anon Location: Tallahassee, FL on Jun 30, 2011 at 06:44 AM
    I a fiscally conservative independent and probably voted more republican than democrat in recent years and this hogwash both sides are playing is pitiful. Seems to me just a few months ago, the bipartisan debt commission said the hole we've dug ourselves into is soo deep, spending cuts alone won't solve the problem. I'm not completely sold on supply side economics raises more revenue. It's simple accounting at this point, if the US truly wants to get rid of the debt, will have to raise more revenue AND CUT spending. That's how I was taught to balance my budget!
  • by Elmo on Jun 30, 2011 at 05:46 AM
    If the Bush tax cuts for the wealthy were allowed to expire then we wouldn't have this problem. Source: Congressional Budget Office. The counter argument to eliminating the Bush Tax cuts is that lower taxes for the top earners will stimulate the economy with job creation. This has never been proven to be true. We've heard politicians say "tax cuts help the economy", but have they ever backed it up with evidence? No.
    • reply
      by Anonymous on Jun 30, 2011 at 12:47 PM in reply to Elmo
      It worked during the Reagan Presidency.
    • reply
      by truth on Jun 30, 2011 at 01:38 PM in reply to Elmo
      I think the democrats had the power to stop the bush tax cuts and did not,At that time they became the obama or democrats tax cuts.Step up and except your votes for not stoping them.
      • reply
        by Elmo on Jul 1, 2011 at 05:58 AM in reply to truth
        Last time I checked the legislative branch was majority republican. Also, party affiliations aside, 95% of congressmen are millionaires. So the rich voted to extend tax breaks for the rich. Typical.
  • by just do it on Jun 30, 2011 at 04:48 AM
    Stop the politics and stop the spending. If you raise the debt ceiling, they will just run the debt right up to it again. Quit wasting OUR money.
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