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Thursday, October 14, 2004

Congress looking at raising debt ceiling; $7.4 trillion debt not enough to pay Bush Administration bills

It's a high price to pay to obtain tax cuts for the wealthy and 1,074 dead American soldiers in Iraq.

CNN reported today that Congress will have to raise the debt ceiling again to make room for a soaring national debt.

Noted during the Lou Dobbs show:

"Congress has already raised the debt ceiling twice during the Bush Administration shattering all previous records."

The Associated Press reports:
Treasury Secretary John Snow announced Thursday that the government has begun using various accounting procedures to avoid hitting the $7.4 trillion national debt limit.
Snow made the announcement in a letter to Congress, which has not passed legislation needed to boost the government's borrowing authority, which now stands at a statutory limit of $7.4 trillion.

"Given current projections, it is imperative that the Congress take action to increase the debt limit by mid-November," when "all of our previously used prudent and legal actions to avoid breaching the statutory debt limit will be exhausted," Snow wrote in the letter to House and Senate leaders of both parties.

Democrats used Snow's announcement to attack the Bush administration's record budget deficits, which will force Congress to increase the debt ceiling for the third time in three years...

"This is the burden Republican policies are passing onto next generations, and there is no plan or prospect for confronting it," said Rep. John Spratt of South Carolina, the top Democrat on the House Budget Committee.

Congress is expected to come back in a special session after the Nov. 2 elections to deal with the debt limit and pass a massive spending bill to keep the government running.

Republican leaders did not want to take up the debt issue before the election and open themselves up to Democratic attacks about the record federal budget deficits run up during President Bush's first term in office.

Full story here.

Remember, this is a president who entered office with a SURPLUS.


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