In his weekly address to the nation, President Obama spoke about the looming debt ceiling, and the discussion presently going on between Democrats and Republicans. The President detailed what both sides have already agreed to, saying;
“The good news is, we agree on some of the big things. We agree that after a decade of racking up deficits and debt, we finally need to get our fiscal house in order. We agree that to do that, both sides are going to have to step outside their comfort zones and make some political sacrifices. And we agree that we simply cannot afford to default on our national obligations for the first time in our history; that we need to uphold the full faith and credit of the United States of America.”
Mr. Obama also spoke about the differences between what he believes must be done and the position the Republicans have taken to protect the rich, saying, “I believe we need a balanced approach. That means taking on spending in our domestic programs and our defense programs. It means addressing the challenges in programs like Medicare so we can strengthen those programs and protect them for future generations. And it means taking on spending in the tax code – spending on tax breaks and deductions for the wealthiest Americans.”
And there lies the problem, the stumbling block between Democrats and Republicans. Mr. Obama’s wish to take on the spending in the tax code is what Republicans are strongly against. It must be noted here, that taking on this tax code equals a 3% tax raise on millionaires, essentially taking their tax rate from 36% to 39%, which is what the rate was under the Clinton Administration.
Republicans are saying no to that 3% raise for the rich, but they are all for spending cuts in programs that benefit the middle class, like cuts in Medicare and social Security.