House Speaker John Boehner's debt plan was put on hold Thursday night after lacking the needed votes to pass, but he may try again Friday. The frustration about the inability of Congress and President Barack Obama to reach a deal to raise the debt ceiling and prevent a possible government default has sparked a firestorm of anger directed toward Washington.
But there's no shortage of people who believe they have the answer to solving the crisis or who is to blame for it.
As Washington struggles to reach a deal, CNN is listening to what you have to say about the debt fiasco as well thoughts from influential voices, politicians and analysts.
iReport: Your message to Congress
With the both chambers of Congress seemingly unable to come up with a debt-ceiling solution, constitutional law professor Jack Balkin wrote about three ways Obama could bypass Congress and try to solve the crisis on his own.
"We are having a debt-ceiling crisis because Congress has given the president contradictory commands," Balkin said in a CNN.com opinion piece. "Congress has ordered the president to spend money, and it has forbidden him to borrow enough money to obey its orders." But Obama may be able to save the United States from defaulting, he suggests, perhaps by issuing two $1 trillion coins or selling the Federal Reserve an option on $2 trillion in property.
CNN.com readers jumped right into the conversation, discussing whether it would be the right move for Obama to sidestep Congress. One commenter named svscnn said: "I don't know if I'm relieved or concerned about some of the revelations in this article. While they all seem a bit shady, I suppose it's good to know that there are still some executive options on the table to keep us from going over the brink that Congress has brought us to."
Marc J. Yacht said he thinks that Obama is being “held hostage” and that he should stand his ground in the debt-ceiling debate.
“Use your power of the executive order to break the impasse, if you can,” Yacht told CNN's iReport. “Not raisng the debt ceiling undermines this country's stability. Equity and balance has to be the driving force in this debate.”
Skip Wininge, another iReporter, got so fed up with Congress’ inability to reform the tax structure that he has devised a plan of his own. He uploaded his thoughts to iReport, explaining, “Don’t pay for wars and tax cuts on the backs of senior citizens who barely get by on Social Security and Medicare. They have already paid their dues."
Another solution? "If far-right conservatives can't listen to reason, maybe they will listen to Ronald Reagan," CNN contributor John Avlon argues.
"Because Reagan had stern words for Congress when it tried to play political games with the debt ceiling in 1987. They still ring true today...," he wrote before quoting the late president's exact words. "Congressional Republicans should read that paragraph (from Reagan's speech) out loud twice before going to vote on the debt ceiling in the next few days. It is essentially the same argument Obama has been making. But in our current hyper-partisan environment reason doesn't resonate across party lines. Instead, there is too often an overheated impulse to oppose Obama at any cost. Hearing the same argument from the Gipper might inspire a needed sense of perspective."
Candy Grossi has someone else in mind that Congress should call for help. She said she is weary of the “Washington political game playing” because she doesn’t think that politicians really care what average Americans have to say.
Her advice to Washington? Enlist the help of people who are used to balancing their household budgets.
“Advice for Washington: Bring some normal housewives who have to really work a budget, putting food on the table ... ," she told iReport. "Maybe then our budget will get in line. We need people who don't have any special interest. We need people who really care for the good of our nation, which means our people (all of us).”
CNN also asked former officeholders for their views on how to resolve the debt crisis. What do they think should happen?
Former Sen. Arlen Specter of Pennsylvania said he thinks Obama should hold in reserve the prospect of using the 14th Amendment to get around the debt ceiling.
“This extraordinary assertion of executive authority could be justified because the Congress has, in effect, abdicated its constitutional responsibility to agree on legislation through the bicameral conference before the drop-dead date leaving a vacuum which must be filled if the government is to function,” he said.
Ex-Reagan budget director David Stockman said, “The crisis lies in the debt, not the ceiling. Kicking the can with a six months' ceiling increase is the worst possible alternative because it allows the politicians of both parties to continue making the big fiscal lie.”
Former Sen. John Danforth said the real issue is the size of government. He urges Congress and the president to agree on raising the debt ceiling and to make the 2012 election a vote on the size of government – between Obama’s plan for a government that spends nearly 24% of the gross domestic product and Rep. Paul Ryan’s plan for a smaller government, amounting to about 20% of GDP.
“The appropriate size of federal spending as a percent of GDP will not be resolved by politicians without input from the American people. In other words, it will not be decided before the 2012 presidential election,” Danforth said.
Meanwhile, iReporter Valerie Bass, a Middleburg, Florida, teacher and the wife of an Afghanistan veteran, offers this advice to Congress: “This is not a game. Cut the benefits the politicians have as we can't afford them.”
Bass has a lot more to say in her impassioned iReport: "My husband lost his health and his ability to have a normal life due to his deployment to Afghanistan. We also have two children in college and are counting every penny. We have given our future and our health for this country. We are the military families!"
"My basic point is that this is a crisis that we have manufactured out of whole cloth. We have created a circumstance in which the world doubts our credibility, rating agencies are thinking of downgrading our debt and the dollar's role as the world's reserve currency could be jeopardized," Zakaria writes. "Please understand that none of these things are happening because the United States is running deficits. There was no indication – by any metric – that the United States was having difficulty borrowing money one month ago. In fact, the world has been lending money to the United States more cheaply than ever before.
"We face downgrades and investor panic not because of our deficits but because we are behaving like deadbeats, refusing to pay our bills, pouting while the bill collector waits at the door."
Many iReporters said they are sick of the politics behind the crisis and want lawmakers to put aside their differences and just solve the economic problems.
Steve Rokowski said he is tired of elected officials “hiding behind statements” about how the American system of government works. Those elected officials are the most to blame, according to Rokowski.
“Compromise is essential to get things done," Rokowski told iReport. "We all have to do it daily in our lives; it’s more important for Congress as their decisions are supposed to be for the greater good of the country. Stalemate is not an option. I am tired of our government officials always hiding behind the statements that, 'This is the system our forefathers have put in place.' They didn’t set up a government that was this dysfunctional.”
Lawrence R. Jacobs, a professor and director of the Center for the Study of Politics and Governance at the University of Minnesota's Humphrey School of Public Affairs, takes a look at the implications across the board and who could walk away a winner or a loser in this war over the debt.
He said that Americans are turning against the GOP in the debt debate because of the party's insistence on cutting government programs only without any tax hikes. And Democrats are winning the argument on Medicare and Social Security. Obama also has a lot at stake here. His talk about the inability of government to get anything done implicates him, too, Jacobs argues. Any talk of a dysfunctional government is hurting his cause, he writes.
"The president's flagging of Washington's 'dysfunction' reinforces the distrust of government that many Americans harbor, oddly making it harder for him to rally support behind government programs such as Medicare and Social Security," he writes. "This may help to explain why the GOP is losing the debt-ceiling debate and yet three-quarters of Americans favor a constitutional amendment to balance the budget."
He adds, "The lessons moving forward are clear. Republican leaders intent on winning the White House and strengthening their position in Congress need to steer their party back to the views of mainstream America or squander what may be setting up as a propitious opportunity in 2012 to run against the 'in' party in a time of deep discontent. As for Democrats, they need to focus like a laser beam on the concrete programs that many Americans rely upon and steer away from the sweeping conclusions about government waste and dysfunction that undergird a genuine philosophical conservatism in America."
But Jeffrey Miron, author of "Libertarianism, from A to Z," writes this public spectacle is a blemish on both parties in part because neither side will concede on their big issues. Democrats won't accept that Medicare is the primary driver of the fiscal nightmare, he argues, and Republicans won't distinguish between two kinds of tax revenue – that from higher tax rates and that from fixing tax loopholes.
"Will the Democrats and Republicans be able to set aside their prejudices?" asks Miron, a senior lecturer and director of undergraduate studies in Harvard University's Economics Department and a senior fellow at the Cato Institute. "Alas, both parties are doing what their respective constituents seem to want, so compromise will not come easily.
"But something must change, and soon. Otherwise, nothing will stop the U.S. fiscal train wreck."
© 2012 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
| Advertising practices | Advertise with us | About us | Work for us | Help
I have voted republicans in past. After seeing this, I shall never ever unless something really convincing comes out. This drama has poluted the image of country big time already...which will take its own time to fix if ever regardless of outcome of deal.
It's heartening to see the government media complex has an audience.
Are you sure? Remember this………
.
“The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the US Government can not pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America's debt weakens us domestically and internationally. Leadership means that, "the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.” - Senator Barack H. Obama, March 2006
It is amazed to see how media affect people's judgement......People need to think clearly what a default means.The only way that we will default on our debt and default on the service of our debt is if the president and Secretary Geithner choose to default. It’s irresponsible for anyone to talk about defaulting on our obligations because we’re not going to unless we choose to......
My family used to vote for Republicans because we believd they represented fiscal responsibility. We were wrong...this mess has been completely created by extremist conservatives and Tea Party ideology. They are willing to sacrifice the middle class to keep the welathy from paying an additional 2% in taxes! Republicans in the House no longer have any common sense. Suddenly the Democrats are the are the fiscally responsible group in govenrment, how crazy is that?
Stand firm Team Party Representatives. Comprimising is exactly what got this country to where we are at. You are people who are true and who love this country. Please, please adhere to your principles. We can not let this country get into a disaster in 5 years. Continue borrowing and spending beyond our means will lead us exactly to this disaster. take control now.
and you'll end up controlling nothing. The world economy looks to the USA...and it's a domino effect. Take your fingers out of your ears and start paying attention to economics.
You do not really believe that, do you? Please tell me you do not.
Yes please adhere to your principles and in the meanwhile take this country to the precipice, but continue to adhere to your principles. That is what Americans are seeing. Your lack of being reasonable. your continuous behaviour of my way or no way.
I am a Republican, probably older than you. 45 years to be exact. I am embarrassed by what the Republican Party has become, and yes, I will not vote for any Republican that has any ties to the Tea Party.
You are clueless – what will be your answer when the economy goes in the toilet, interest rates skyrocket, and the stock markets crashes? Will you tell my family it is good for while us when we go under? Are your principles more important than my family? I think not – pull your head out. Call you Tea Party rep and tell him/her to put our Pledge of Allegiance above their Pledge to Grover Norquist! Compromise! Raise some revenues and cut some spending, it ‘s that simple...
You can't be serious. You are going to destroy the party and the country with this type of ignorance. The definition of politics is to compromise. If it is your way or nothing, then you will get nothing. The tea party is going to get booted out of every office that we gained and then we give the Democrats the House back. Keep listening to the 30% of the people that the tea party does and that is all the votes that they will get next election. It is moderate republicans and Independents that gave these candidates the votes needed to win. The tea party will not get past the primary in 2012.
That's a lovely thought. A nice balanced budget. Shame that a country cannot be run like a household. Your average household doesn't have to worry about little things like wars, diplomacy, or trade.
If they Tea Party's view is that we should never fight a war, even if attacked and turn isolationist, and NEVER import anything, then by all means push for a balanced budget amendment.
If you don't believe in those things, don't support such an amendment. Otherwise every time we go to war your taxes are going to SKYROCKET. Just like in the old days when goverments expenses were limited to their income.
Who can understand this stuff, not me. You need to be a Philadelphia lawyer!
In a nutshell, the debt ceiling needs to get raised because this allows the country to not default on the payments from the past overspending (including the Bush tax cuts and rebates that are just another form of spending). Boehner and the House is wasting time passing the Cut, Cap and Balance bill as well as this current Boehner bill. This is just theater because neither bill has a chance of becoming law. Just a huge waste of time, so they can say that we passed a bill but the Senate and the President killed it. The senate could waste it's time proposing one sided bills also but they realize that it is just theatrer. The way the system is supposed to work is that they should be spending their time working with the Senate on a compromise bill that both the House and the senate will have enough votes to pass it. It then goes to the President to get signed into law. I have been a Republican for over 50 years but the dysfunction is coming from the Republicans and not the Democrats or the President. The Democrats and the President have come very far to reach a compromise but the Republicans have shown no interest in any compromise. I am disgusted by what our party has become. Ronald Reagan is rolling over in his grave!
Republicans need to remember John McCain's slogan, Country First. They are acting like it is party first, big money second and country last. I am a small/middle sized business owner so I am not speaking in my best interest but I believe in Ronald Reagan and John McCain's philosophy of Country first.
Get the Facts Now
Read the April 11 issue of Business Week which lists five of a number of strategies that you can use to pay NO TAXES !! The catch is that the laws have been written to prevent any middle class riff raff from using them. Its only for the wealthy. AND, the top tax on capital gains is only 15 per cent. How can the Republicans defend this??? The wealthy and those who make money off of stocks should pay the same rate of taxes as people who work for salaries.
In the 1950s corporations paid 36 percent of the tax revenue of the U.S. government; due to a number of tax breaks they now pay less than 7 percent (you can verify this by googling it). This includes companies like GE that paid no taxes for atleast the last five years despite making tens of billions of dollars each year (cited in New York Times article). The 7 percent is no doubt paid by small and medium sized corporations that cannot use the tax loopholes created for big business. These firms use the roads, infrastructure, fire department, police department and other government services without paying for them. Guess what? The middle class with its taxes is subsidizing these firms. With the middle class paying all the bills, these firms can give out huge bonuses to their executives. How can the Republicans justify not raising the taxes on the wealthy and on firms??? How long do they think the middle class can continue to foot most of the bill for essential government services while the wealthy and big business free load ?
Its simple, repugs don't get it. They allow themselves to be manipulated by others!
Benjamin Franklin wrote that "Judas sold only one man, Arnold three millions", well, the Tea Party is about to sell out the entire American middle class just to save the rich from paying an additional 2% in taxes. Here a just a few statistics:
• 83 percent of all U.S. stocks are in the hands of 1 percent of the people. • 61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007.• 66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.• 36 percent of Americans say that they don't contribute anything to retirement savings.• A staggering 43 percent of Americans have less than $10,000 saved up for retirement.• 24 percent of American workers say that they have postponed their planned retirement age in the past year.• Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.• Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.• For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.• In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.• As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.• The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.• Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.• In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.• The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.• In America today, the average time needed to find a job has risen to a record 35.2 weeks.• More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.• or the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.• This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.• Approximately 21 percent of all children in the United States are living below the poverty line in 2010 – the highest rate in 20 years.• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.• The top 10 percent of Americans now earn around 50 percent of our national income.
Put our Pledge of Allegiance above your Pledge to Grover Norquist. Put out country and our people first, not the wealthy and big business. Compromise! Raise revenues, cut some spending, and protect Social Security, Medicare & Medicaid.
What are you talking about? Yes, the wealthy could and should pay more taxes, but it is an outright lie to say that middle class can't use the loopholes and credits only the wealthy.
In terms of federal income tax:
The top 1% pays more than the bottom 95%.
The top 1% makes 18% of the wages but pays nearly 40%.
The top 10% pays 70%.
47% pays NOTHING and its mostly from the lower and middle class (40% made a profit)
It is inaccurate to pretend like the middle class isn't finding loopholes, my sister in law makes over 50K a year and she paid NOTHING in federal income taxes.
I agree! I will also tell you as a business owner that has hired thousands of employees in my life, no one, including me factors in the top tax bracket being 35% or 39% in deciding whether to hire people or not. If I can make more money by hiring more people, I do it. We would rather not pay the extra 4% but to say that we factor that into our hiring decision is a bold faced lie.
By the way...I agree in shared sacrifice. I am fine with paying higher taxes and having less loopholes but I also think that the 40% of the country that is paying no taxes should also pay something. I don't care if you are poor, you should pay something. I know people who file their taxes because they get a refund for every child they have. They pay nothing in but they get $7,000 from the government for 2 kids. Why? Why not get rid of the IRS completely and go to a Value Added Tax like they have in Europe. That way, everything except food has a 15% tax on it. With this, everyone pays the same percentage. If you buy a little amount of items, you pay only a little tax. If you are wealthy and you buy cars, boats and airplanes, you pay more. It is more complicated than this but it could be done. You would have to find a way to tax people who take their money out of the country to buy things for example. Don't tax people for making money, Tax them when they spend it. No more having to file taxes on April 15th! Wouldn't that be awesome!
A very simple solution to debt crisis is to deevaluate US currency by 25% so that $$$ held by Chinese in US are liquidated immediately by 25%. This will make my home mortgage easy to pay as all of a sudden, the value of my home is 25% bigger than what it used to be. Once it is done, Chinese will start selling US equity held by their banks which will put a more pressure on the US dollar to deevaluate it to further and we will plunge into a higher recession and US will lose its grip on the financial system. The only reason US Congress (particularly Tea Party new comers) is not allowing a solution because they want to see Obama disappear in disgrace from the next election. They have never reconciled a fact that a Black president is leading a country. They can not say it openly but this is their hidden agenda. It will be interesting to see how dollar depreciate quickly if the debt ceiling is not raised. This is all about perception and our great country has been hijacked by Tea Party new comers who have no experience running the country. We appreciate that there has to be balanced budget and they have put a stop to it which is good but they are going too far by jeopardising our National interests. This is all petty politics now to make sure that Obama disappears from 2012.
Well said, and oh how true it is, tea baggers hate!
The enemies/discractors will be happy if the debt ceiling crisis is not resolved. I do not understand why the Tea Party Congressmen can be so dumb. US rating will be downgraded and we common people will suffer
I think that if these people cannot come up with a solution then they should be the first to not get a paycheck. I think things would be getting done a lot faster if that were the case. The political posturing here is completely ridiculous and I cannot adequately convey how disgusted I am with it. Republicans and Democrats alike are to blame, although it seems to me that Democrats have tried a lot harder to come to a compromise. These tea party guys are really an obstacle.
Take care of this thing now...raise the ceiling to get through this short term. Then, work on the budget and GET RID of a lot of bloated budgets.
Honest to God, don't you think it's easier to cut a few hundred million from a 550 BILLION dollar defense budget than trying to chisel out a bucks from nickel-and-dime budgets. Time to revamp the military...it's a license to print money there.
Secondly, do something with the IRS. Start getting people and corporations to pay their rightful amount of tax. Too many people and corporations write off EVERYTHING, yet demand all the services. Corporations that go offshore and take jobs away from the USA get NO tax relief whatsoever. There are so many companies that have offshore banking, it's disgusting.
Start cutting bloated budgets, and start getting people and corporation to pay their fair share.
No offense, but are you that naive, Do you really believe that if the Tea Party and the Republicans win this political game they will make their political friends the big corporations pay more taxes? Haven't you heard, it is a tax increase to take out the subsidies given to the oil companies. Please, I think you need to research a little more.
A short term extension will cause our credit rating to be downgraded. It is the dsame as a default! All the GOP has to do is compromise! Raise revenues & cut some spending. It is that sinple. No need to destroy our economy because of an extremist ideology...
All of this maneuvering by that bunch of babies in Washington to solidify their success in the next election has backfired. I want them ALL out. Republicans, Democrats, Tea Party...ALL OF THEM.
We're going to go down to the wire, end up with a package that nobody is happy with, and for what? To disgust the voting public and embarrass the country in front of the world?
I work at the Capital. Obama/Reid want MASSIVE TAX INCREASES. That's why the House bill s are dead before arriving. Boehner refuses to put tax increases in the bill.
When/if the House passes their bill Reid will take it gut it and put everything he and Obama want. When the House receives the bill from Reid it will be unrecognizable. The House will be pressured to pass the bill without reading it and the people of America will have a MASSIVE TAX INCREASE BLAMED ON THE REPUBLICANS.
WRONG!!!!!!!!!!!!!!!!! There are no massive tax increases in any bill yet, and if they are going to be any it will be ONLY for the WEALTHIST Americans. You know, the Wall Street slickers who got us into this mess to begin with. GET Your FACTS STRAIGHT and your wording. Remember, not tax increases on Americans, but tax increases on the WEALTHIEST Americans. There is a big difference.
Love how you are angling your statement as "who will get blamed." I'd like to discuss these massive tax increases, since it evidently involved closing loopholes and ending subsidies for people and companies that are posting giant profits yet not hiring anyone.
How much are you being paid to say that? Please, Americans are not stupid. come up with a different tune.
Bull!!! Boehner and his gang are spinning and you are buying it along with so many others. Obama wants to tax the wealthy and close tax loopholes that they take advantage of. NO taxes for the others (like 95 per cent of the people) The President has been bending over backwards (way too much IMHO) to please these idiots. I say to him, bend no more and pass a straight debt ceiling bill and end this Republican Clown Show. THEN perhaps once he's done playing adult to all the kiddies, he can concentrate more on problems that are NOT manufactured problems like this one that the R's brought..
If you worked there, surely you'd know how to spell it.
Since nothing else is working for the economy, why not go a little further in debt and try giving each tax payer $150,000 plus and that way people would pay off their mortgages, but a home, buy cars so on and so forth but bottom line the economy would start moving with people spending money. Maybe we could get back to the USA we have always loved and been proud of.
The Boehner Republicans should all resign and become Independents for a few days leave out the tea dweebs vote then return to the party.
I am bone sick & tired of all of the rhetoric about "who is winning the debate on the debt ceiling." I can tell you who is NOT winning, us, US. THE PEOPLE. We lose our credit rating and we all lose. Credit becomes more expensive for everyone: farmers will have to pay more for advances for growing crops, small and large business will have to pay more for expansion loans and start up loans (talk about ruining jobs!), home owners and people who own property will have to pay more for mortgages. Every time anyone has to pay more, they will have to make up the costs somewhere, which means they raise prices. We all pay more. So DC stop with the whole blame game, you are all to blame. Stop trying to position for the next election because if you keep this up we will vote ALL of you out. Cut the budget (including military, medicare and SS), raise revenues (including eliminating tax breaks for oil companies and corporate jets), find a reasonable compromise in your many plans (and it doesn't matter if it is the Democrat's, the Republican's, Obama's or the White House cat's), but GET IT DONE. We don't have the time for you to continue wasting time playing politics!
Hmmmmm, Let's see!!!!! How about raising/implementing corporate taxes and maybe even a slight raise in income tax for the top 20% richest?????
Sure. Why not OR maybe the 50+% that is not paying any income tax should start paying. The top 20% pays 80% of the tax collected. We have become a nation of free loaders
Republicans – Put our Pledge of Allegiance above your Pledge to Grover Norquist. Put out country and our people first, not the wealthy and big business. If you can't do your job now, what difference will a Balanced Budget Amendment make? It is a total copout! Compromise! Raise some revenues and cut some spending, it ‘s that simple...
Well put Allen!