Speaker of the House John Boehner’s debt reduction plan received the support today of Republican super-funder American Crossroads.  Stephen Law, President and CEO of American Crossroads also wishes that more budget cuts were possible and sympathizes with Tea Partiers who are not satisfied with Republican deals so far.   Law sees few options for Boehner and the House with only days before a default by the U.S. Government on its loans.

Speaker Boehner is facing resistance from newly-elected Republican Congressman, who know that Americans are fed up, and are holding each of them accountable for a full solution, not just an attempt.  Steven Hurst of Associated Press reports just how dire the consequences will be if lawmakers don’t resolve their differences by August 2nd:

“Unless he can wrestle the situation under control, Boehner risks losing leverage in his dealing with President Barack Obama and Democrats controlling the Senate.
Without an infusion of borrowed money, the government faces an unprecedented default on US loans and obligations like $23 billion worth of Social Security pension payments to retirees due on Aug. 3. Congressional telephones and email servers were jammed after Obama urged the public to contact their representatives in his Monday night address to the nation.
The threatened downgrade by credit monitoring agencies of the United States’ gold-plated AAA rating absent a solution to the US debt and borrowing crisis is predicted to add at least $100 billion in interest payments to the already ballooning American debt. That would raise interest rates for Americans seeking home mortgages and auto loans and force up the cost of credit card debt. Obama has called that a silent tax increase, something the Republicans have refused to accept when Democrats have sought increased government revenue to stem the crisis.Today House Republican leaders are digging for votes, in an attempt to put a compromise on the table President Obama will accept.”

With every hour it is clear that a showdown is building between the White House and Congress.  The only question is who will blink first.

Stephen Law and American Crossroads is urging lawmakers to compromise and not making Republicans the villains.

“President Obama may be willing to risk a fiscal Armageddon to get tax hikes, but Republicans need to be the voice of reason and responsibility.”  said Law.   Read here what Boehner’s plan will do, and why Tea Party leaders are unhappy with the deal.

 

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Filed under: Economy, Featured, Inside The KC, Sonja Eddings Brown by Sonja Eddings Brown, Jul 28, 2011