Obama calls for tax hike; GOP says no

Dan Tuohy
New Hampshire Union Leader

With dueling debt limit plans facing stalemate, President Obama warned Monday night of the economic calamity of missing a default deadline of Aug. 2 to pay all the country’s bills.

Interest rates would skyrocket on credit cards, mortgages, car loans and student loans, costing America jobs and business growth, Obama said in a national address.

“We would risk sparking a deep economic crisis, this one caused almost entirely by Washington,” he said.

As he promoted the need for a compromise, Obama criticized those Republicans in Congress who insist on “a cuts-only approach” to raising the debt ceiling. He again called for tax increases for Americans who make $250,000 or more, as part of what he called a balanced, fair plan.

The tax increases have become a non-starter for Republicans, even as Republicans and Democrats presented modified plans to raise the debt limit and make deep spending cuts. House Speaker John A. Boehner, R-Ohio, proposed a two-step plan to have an immediate $1 trillion cut, followed by deeper spending cuts over 10 years. Senate Majority Leader Harry Reid, D-Nev., introduced a plan for $2.7 trillion in cuts coupled with raising the debt limit through 2012.

Boehner, in a televised address following Obama’s, criticized the President for wanting “a blank check” and ignoring the economic peril of bloated government bureaucracy.

“The solution to this crisis is not complicated,” Boehner said. “If you’re spending more money than you’re taking in, you need to spend less of it.”…

The article continues at the New Hampshire Union Leader.

H/T Nh Teaparty


The Daily Caller has the full text of the President’s address and on their Facebook page note, “Krauthammer on Fox says Obama’s speech was ‘political’ and ‘campaign’ style.”

The verbally economical Zip at Weasel Zippers did a live blog of Obama’s address. It reads like the old Cliff’s Notes version of Wuthering Heights.

The Daily Caller also has the full text of John Boehner’s rebuttal to tonight’s speech. The Speaker has more or less held the line longer than most observers imagined he would, but the Heritage Foundation warns Conservatives Beware: The Boehner Plan Leads to Tax Increases:

Conservatives have a clear objective: Debt limit legislation should drive down federal spending on the way to a balanced budget, while preserving the ability to protect America, and without raising taxes.  The plan suggested by Speaker of the House John Boehner fails to meet that objective — indeed, it sets America up for tax hikes…

Congress Warned of Credit Downgrade if Senate Dems Use Accounting Gimmick to Claim War Savings Count As $1 Trillion in Deficit Reduction…

UpdateKrauthammer on Obama’s Address: “I Thought I Was Cynical Until I Heard That Speech” (Video)

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