Senate Vote Today
August 2, 2011 by USA Post
Senate Vote Today, Congressional leaders expressed confidence that the Senate ratify a US-limit increases in the debt to avoid a failure during the court today and 2.4 billion dollars in expenses over the next decade.
The Senate is expected to vote at noon, and President Barack Obama is scheduled to make a statement at the White House soon after. The House voted 269-161 for the measure yesterday, raising the debt ceiling to finance the government sufficient until 2013 and threatens to cut spending automatically, if a bipartisan committee does not identify reductions that Congress will to accept.
“Finally, Washington is taking some responsibility for spending money you do not have,” said Lamar Alexander of Tennessee, the third-ranking Republican in the Senate. “Make no mistake, this is a change in the behavior of spend, spend, spend to cut, cut, cut.”
Second Democrat Dick Durbin of Illinois said his vote for the plan “does not come without pain,” it will reduce funding for disease research and education programs for poor children. Lawmakers should “be prepared to increase revenue” in future efforts to reduce the deficit, he said.
Treasuries rose, pushing 10-year note yields to the lowest level this year, a government report showed consumer spending unexpectedly fell in June.
Yields on benchmark 10-year fell three basis points, or 0.03 percentage point to 2.72 percent at 10:13 am in New York, according to Bloomberg prices bond trader. The 3.125 percent securities maturing in May 2021 rose 7 / 32, o 2.19 per 1,000 face value, to 103 15/32.
Stocks extended their losses. Standard 500 & index, fell for the seventh straight day, losing 0.8 percent to 1277.09 at 10:53 am in New York. The Dow Jones industrial average fell 65.05 points, or 0.5 percent, to 12,067.44.
The legislation falls short of the savings of long-term deficit that Obama initially sought. Political obstacles to reach the lower goal are formidable, although the sanctions as improve the prospects for “a little,” said Peter Orszag, a former budget director for Obama.
“The fundamental problem is that they are hyper-polarization, and will not,” said Orszag, now vice chairman of Citigroup Inc. (C) and a contributor to Bloomberg Vista. “This agreement will not solve that.”
Sen. Mark Warner, a Virginia Democrat, said yesterday that the agreement does not address the “central problem” of how to reform the tax system and reduce spending on Medicare benefits such as driving the deficit. However, he said, he plans to vote for him because he “helps us to avoid default.”
Bill Gross, who runs the world’s largest bond mutual fund Pacific Investment Management Co., said the commitment of the debt ceiling is not going to make a “dent” in the U.S. deficit.
“In addition to an existing and nearly $ 10 billion of outstanding debt of the Treasury, the U.S. has a nearly unfathomable 66 trillion dollars of future liabilities to a net present cost,” Gross wrote in a perspective investment newsletter published in Newport Beach, currently the California-based company website.
Representative Paul Ryan, a Wisconsin Republican who is chairman of the Budget Committee of the House, said on CNBC today that lawmakers must confront the rising costs of entitlement programs.
“Medicare is being driven into bankruptcy, Medicaid is bankruptcy states,” said Ryan. “Our health care system, rights are the main driver of our debt. The programs must be reformed and strengthened if they are to be saved.”
A $ 917 000 000 000 down payment on reducing discretionary spending contained in the measure that would focus on more than two thirds of the cuts come after 2016. The reduction in spending next year and 21 billion, less than two tenths of one percent of U.S. gross domestic product.
Amid signs that the economic recovery slowed almost to a standstill earlier this year, Michael Feroli, chief U.S. economist JPMorgan Chase & Co., said he expected spending cuts for next year, “he adds modestly,” the burden on the growth of the provisions of the expiry of the economic stimulus package and the final scheduled December 31 a temporary cut in payroll taxes.
Vice President Joe Biden, who met with House Democrats yesterday to gather votes for the compromise, said the plan has “overwhelmingly positive” – ??the elimination of the threat of a breach of U.S. obligations After months of struggle between the White House and Congressional Republicans on the collection and the limit of 14.3 trillion of debt.
We had to get this out of the way to reach the issue of growth of the economy, “Biden told reporters upon leaving the meeting.
Although the measure does not specify and 917 billion in discretionary spending cuts over 10 years, the rest is left to a panel of 12 members of Congress, divided equally between the two parties.
That “super-committee” is supposed to arrive at the recommendations of November 23, with the vote guaranteed by itself or by Congress to prevent the blockage through parliamentary maneuvers. If Congress does not act, automatically cut spending after 2013.
However, the penalties come across a story of failure, when Congress has tried to motivate the threat of sanctions. No Congress can bind a successor, and the impact of sanctions is based primarily on the political embarrassment of going back.
The 1985 Gramm-Rudman-Hollings budget set enforceable targets for Democrats to push credit Republican President Ronald Reagan to accept tax increases. However, during the five years the law required spending cuts were reduced on a case by Congress and another nullified by a budget agreement next.
Among the sanctions that would trigger political setback if Congress fails to meet its objectives is an automatic cut of up to 500 billion military spending, in addition to 325 billion and the reduction of defense spending, which already in the agreement.
“If the U.S. military is so short, in the worst case, because the proposal would be enough, is the beginning of the end of the United States as an international power very well,” said Sen. Joseph Lieberman, a Connecticut independent In the Senate yesterday.
While the Joint Committee will have broad new powers to reduce the deficit through spending cuts and tax increases, therefore the rules of Congress are obstacles to the use of the tax cuts of the Bush era to accomplish that goal.
Reference to the Congressional Budget Office of income tax cuts assumed expire on schedule in late 2012. The Republicans want a level of income in the future as the extension of all cuts, while the government wants to raise about 1.8 trillion and above this level during the next decade just to let tax cuts for people high-income expire. Compared to the discretion of the CBO, either approach would be seen as a tax, not deficit reduction.
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