Taxes, Social Security fears cited in debt ceiling talks
July 12th, 2011
01:40 PM ET
3 years ago

Taxes, Social Security fears cited in debt ceiling talks

Washington (CNN) - GOP leaders insisted Tuesday they will not yield to Democratic demands for tax increases on the wealthy as part of a deal to raise the debt ceiling, bringing new doubts about the ability of Washington to pay all of its bills next month.

President Barack Obama, in a CBS News interview scheduled to air Tuesday night, warned that, absent a deal, he can't guarantee older Americans will continue to receive their Social Security checks.

FULL STORY

Filed under: Congress • Debt • Deficit • President Obama
soundoff (21 Responses)
  1. SecedingfromTexas

    Eric Cantor owns stock in Proshares ETF, which will earn him a bundle if America defaults on its debts. Sounds like a
    conflict of interest to me and he should recuse himself.
    His close ties to the Koch Brothers and his obvious desire to take over Boehner's job, along with the stock ownership
    add up to an untrustworthy sleeze bag.
    Mitch McConnell wants Harry Reid's job and "to destroy President Obama"
    So, they will meet, decide nothing, and come out droning on and on about how "the American people" want this or
    that.
    These backstabbing, ornery, cantakerous, manipulative, self-centered, lying, haters do not, speak for me!

    July 12, 2011 08:42 am at 8:42 am |
  2. GonzoinHouston

    In a democracy, government operates by compromise. Those who absolutely refuse to compromise are absolutely opposed to the democratic process.

    The GOP has painted itself into a corner on this one. They cannot give an inch on taxes, but they insist on cutting democrat-friendly spending. This is called trying to get something for nothing, and it won't work.

    July 12, 2011 08:49 am at 8:49 am |
  3. GI Joe

    McConnell has a very rare disease. Symptoms are that when he lies, part of his chin goes away.

    How many lies has he told? Geeeeeez.

    July 12, 2011 08:50 am at 8:50 am |
  4. The Elephant in The Room

    It is always instructive to dissect the public spin of the GOP.

    Kudos to Sniffit, RudyNYC, G.I.Joe, MarieMD, Seceeding From Texas, & ALL the other dedicated patriots who use their honesty and intellect to reveal the gapping holes in the positions of Republican politicians.

    Here are some things to keep an eye on:

    1) Boehner says "we`re agreeing to give the Democrats the Debt Ceiling increase THEY WANT in exchange for the spending cuts the `American People` want". He attempts to re-define their concession. Gee, I didn`t know that only the Democrats wanted to pay our prior obligations.

    2) Boehner complained yesterday on Ingrahams show that the President was " in campaign mode" whne he talked about governing – – about doing the BIG $4T deal – – about facing his base and Boehner facing the Republican caucus.

    Mr. Speaker is worried. Folks, don`t call off the dogs.

    July 12, 2011 09:13 am at 9:13 am |
  5. Rudy NYC

    We do not have a revenue problem.
    We have a Republican problem.

    July 12, 2011 09:13 am at 9:13 am |
  6. The Obama Recession Continues Unabated, Obama Depression on the way

    When Obama pointed out that the Republican-controlled U.S. House had already passed a proposal that would overhaul the government-run Medicare health insurance program for senior citizens, the GOP aide said, Boehner responded: "Excuse us for trying to lead."
    ===================================================================================================
    YES! I am SO glad to see John Boehner not take any guff from the Demonizer-in-Chief. Obama hasn't lead on one single issue. He's the inventor of "leading from behind", aka NOT LEADING. What do you expect from a person who repeatedly voted "present"?!! The guy is totally useless.

    Obama said, he wants to ensure that the current progressive nature of the tax code is maintained, with higher-income Americans assessed higher tax rates
    ===============================================================================================
    OF COURSE! How else will they maintain their great entitlement society to foster government dependence? The tax system is no longer "progressive", it is discriminatory and confiscatory. When nearly half of the people in the country pay no income tax, then the tax code has been hopelessly perverted. "progressive" means "redistribute" when it is turned into rules and regs. The Democrats class warfare strategy depends on all this. They divide the American people into "greedy rich" and "poor" and then play the same game with race. The Democrats are the ultimate divisve party.

    July 12, 2011 09:19 am at 9:19 am |
  7. Chipster

    Taxing Social Security is a pretty cruel way to cut the budget. Social Security recipients have not had a cost of living increase in at least two years and I'm sure we can all agree that costs HAVE increased. My husband, after more than 35 years in the foundry industry, was forced to retire at 65. He paid for his retirement benefits for more than 35 years, so don't tell me that he is not ENTITLED to his whopping $1316.61 after paying the monthly Medicare payment.

    My blood boils when Republicans try to make Social Security and Medicare sound like handouts when we have paid into the system for so many years! Now, Congressional Republicans want to TAX my husband's benefits; cut his monthly payment, so that the wealthiest people in the nation won't be asked to pay more? Reducing the amount he receives is exactly the same as a TAX on his benefits that haven't increased in 2 years!

    If I were not still working and paying for benefits since I was 15 yrs old, we would probably be homeless. It is unbelievable to me that Republicans can convince the public that Seniors should pay the TAX on behalf of the wealthy!

    Please note that Congress has any cuts in their benefits or that they should have to pay for their health insurance and 401K.

    July 12, 2011 09:25 am at 9:25 am |
  8. FDA

    If you think the top two percent of the so called "job creators" are creating jobs with their tax cuts, and loop holes you better look closer. They are investing their money, and creating jobs over seas, and they have been doing it at an alarming rate for over fifteen years. I have more than a few friends that have taken full advantage of the GOP tax breaks for the rich. If Obama lets the GOP take anything more from the middle class in this country, he will be out in 2012.

    July 12, 2011 09:34 am at 9:34 am |
  9. Mindie in Indie

    why are they all smiling? I thought we had a crisis on our hands. Just goes to show it's all for show. They pretend in front of the camera and then when it's off they all best buds. While America crumbles. Disgusting all of them.

    July 12, 2011 09:37 am at 9:37 am |
  10. Dahly

    Remember the last deal involving raising the debt ceiling? The GOP was looking for $100 billion in cuts, settled for $68 billion, which turned out to be about $3 billion in reality? Can the Dem's/Obama really be trusted? Quite a situation has evolved when the GOP becomes the more trusted!

    July 12, 2011 09:37 am at 9:37 am |
  11. Mindie in Indie

    It was under Reagan that jobs started being shipped overseas. Trickle down economics was under Reagan in an effort to give yours and my tax money to the rich to create jobs. So we see now that money did create jobs – IN INDIA. Trickle down economics was the biggest snow jobs this country has ever fallen for. Trickle down indeed.

    July 12, 2011 09:41 am at 9:41 am |
  12. Former Democrat, now an Independent

    We do not have a revenue problem.
    We do not have a Republican problem.
    We have a liberal entitlement problem.

    July 12, 2011 09:48 am at 9:48 am |
  13. Rudy NYC

    Imagine the US has two bank accounts, a savings and checking account. The checking account is where income taxes go, and where discretionary spending is paid out. The other account is used for entitlements like Social Security and Medicare.
    From time to time (Reagan was really bad, which is why he had to fix it) we have dipped into those funds to "invest" in things which are supposed to return a profit. Sometimes those "investments" were used as part a trickle down tax cut. In other words, the checking account borrowed from the savings and has not paid all of it back yet. This is why some of the entitlments are coming out discretionary spending.
    We are told the funds are running out, which is true. But, they are running out because they have been raided in the past and not repaid.

    July 12, 2011 09:50 am at 9:50 am |
  14. Four and The Door

    FDA
    If you think the top two percent of the so called "job creators" are creating jobs with their tax cuts, and loop holes you better look closer. They are investing their money, and creating jobs over seas, and they have been doing it at an alarming rate for over fifteen years.
    __________________________________________________________________________________________________
    You are complaining about American companies doing business overseas? Do you also complain about the foreign companies doing business in America and taking all of the profits from American labor and shipping them to their home country?!?! Welcome to 2011, FDA. It's a global economy and hopefully American companies are participating in it.

    July 12, 2011 09:55 am at 9:55 am |
  15. Patrick from Minnesota

    The Republicans need to learn the word comprimise. How bout this. We come up with a plan that is half spending cuts and half tax increases on top earners and corporations that send our jobs overseas. While we're at it, let's actually enforce the tax code on corporations. Two thirds of corporations don't even pay their taxes! If they manned up and paid their taxes, we probably wouldn't even be in this mess!

    July 12, 2011 10:05 am at 10:05 am |
  16. Randy

    Chipster all I can say is, I glad I'm planning for my retirement instead of relying on someone else to pay for my retirement.

    July 12, 2011 10:12 am at 10:12 am |
  17. Patrick from Minnesota

    @ The Obama Recession Continues Unabated, Obama Depression on the way

    Are you really trying to pitch the failed "trickle-down" policies of the Bush and Reagan administrations? Look at unemployment numbers from the Reagan and Bush administrations compared to that of the Clinton and Obama administrations. You will notice that in the Reagan and Bush administrations, there was a consistant increase throughout their terms. You will find the opposite with Clinton and Obama (coincidence?).

    You will also find that during the Reagan and Bush adminstrations, there was a significant increase in the federal deficit. During Clinton however, not only did he shrink the deficit, he turned it into a surplus.

    Therefore I conclude that the "supply-side economics" policies of Republicans do not work. If you actually want to sound smart on this forum (you don't right now in any way), enroll in a high school economics class and learn for yourself how our economy actually works.

    July 12, 2011 10:12 am at 10:12 am |
  18. GI Joe

    @FDA – I totally agree. I won't vote for a republican EVER, But if we have a republican president, at least we can bash him. ha ha ha ha ha (And we will)

    July 12, 2011 10:17 am at 10:17 am |
  19. Sandy

    FDA:
    "If Obama lets the GOP take anything more from the middle class in this country, he will be out in 2012."

    So you're going to vote for Republicans or at least stay home on election day? That only insured a GOP win, which would make things worse. You better go to the polls and vote Obama (while holding your nose if you have to). However, I will be voting for Obama without holding my nose!

    July 12, 2011 10:19 am at 10:19 am |
  20. Rudy NYC

    Four wrote:
    You are complaining about American companies doing business overseas?
    --------------
    Yes. Because any taxes paid on those overseas investments are 100% deductible here in the US. That effectively makes overseas investments tax free for US companies.

    July 12, 2011 10:25 am at 10:25 am |
  21. 'merica ruined by rethugs

    Former Democrat, now an Independent

    We do not have a revenue problem.
    We do not have a Republican problem.
    We have a liberal entitlement problem.
    -------------------------------------------–
    Nice try Always Been a Rethuglican.
    Entitlement refers to something that one has not worked towards nor paid into. We do indeed have a regressive Rethuglican problem.

    July 12, 2011 03:09 pm at 3:09 pm |