the third major compromise for Democrats in the past year

July 2, 2011 - PRLog -- Acquiescing to GOP demands would be the third major compromise for Democrats in the past year — a point of considerable frustration for the party's liberal base. Despite Democratic opposition, Congress voted in December to extend the Bush-era tax breaks for the wealthiest Americans and agreed this spring to steep budget reductions to avert a federal government shutdown.Some Democrats believe Obama set the stage for the current situation by opening negotiations on deficit reduction this spring with a proposal that contained a 3-to-1 ratio between spending reductions and tax increases. Administration officials defend that move, saying the president began discussions at what one senior official called a "realistic starting point," not one designed to maximize his bargaining position.

Even as the political battle mounts over federal spending, the end result for federal policy is already visible — and clearly favors Republican goals of deep spending cuts and drastically fewer government services.President Obama entered the fray last week to insist that federal deficits can't be reduced through spending reductions alone.
The current debate involves two issues: As of Aug. 2, the Treasury Department says, the government will hit its statutory ceiling for borrowing money. Administration officials and congressional leaders agree that a failure to raise the ceiling could cause economic chaos by undermining faith in the government's creditworthiness.Republicans have insisted they will not approve a debt-ceiling increase without agreement on a major reduction in the government's long-term deficit, although their spending plan would also require raising the debt ceiling. They have demanded that deficit cuts match the new borrowing authority from http://www.feathershairextension.com/feather-hair-extensi... , dollar-for-dollar, and have vowed to oppose any increase in tax revenue. About $2.4 trillion in new borrowing capacity would be needed through 2012, Treasury officials say.

But even if Obama were to gain all the tax-law changes he wants, new revenue would make up only about 15 cents of each dollar in deficit reduction in the package. An agreement by the Republicans to accept new revenue would be a political victory for Obama because "no new taxes" has been such an article of faith for the GOP.But substantively, budget experts note, the plan would still be dominated by cuts to government programs, many of them longtime Democratic priorities, such as Medicaid and federal employee pensions.

# # #

We are a wholesaler in China, specilized in light industry, such as cloth, shoes, toys. Owning to the high quality and competitve price, our products had won great popularity all over the world. Hope to establish a long pleasant relationships with you.