DIRECTIONS: Read the following and answer the questions? http://www.americanenglishconversation.com
http://www.freeenglishconversation.blogspot.com
http://www.grammar-help.blogspot.com
http://freeenglishlessons-denise.blogspot.com/
U.S. Treasury Secretary Timothy Geithner is not expected to significantly shift the Aug. 2 date when the government will have exhausted all of its emergency measures to stave off default, a source familiar with the administration's efforts said Monday.
http://www.freeenglishconversation.blogspot.com
http://www.grammar-help.blogspot.com
http://freeenglishlessons-denise.blogspot.com/
U.S. Treasury Secretary Timothy Geithner is not expected to significantly shift the Aug. 2 date when the government will have exhausted all of its emergency measures to stave off default, a source familiar with the administration's efforts said Monday.
 |
Travelif | Photodisc | Getty Images |
That means the Obama administration and Congress still have about a month to reach a deal to raise the $14.3 trillion debt limit on how much the government can borrow.
After that date, the Treasury Department will run out of money to pay government bills, including interest on U.S. debt.
Delayed or missed debt payments would rock financial markets and could send the country into a new recession, top Wall Street and policymakers have said.
The source requested anonymity because the source was not authorized to speak on behalf of the administration and warned the projections were not final.
The Treasury Department is due to provide congressional leaders with an updated forecast as early as Friday.
A significant shift in the Aug. 2 drop-dead date would fuel suspicions among a growing group of Republicans that the deadline can be ignored and that the administration is fear-mongering.
"Delaying it will reinforce the argument that this crisis is a creation of Treasury, the White House and the political establishment," said Stuart Rothenberg, a non-partisan political analyst.
He said it also will fuel arguments that the administration is picking "dates out of a hat to try to put pressure on Republicans to raise taxes." The White House is locked in a battle with lawmakers over how to raise the debt limit and curtail government spending.
Republicans oppose raising taxes and want to focus on spending cuts. Democrats and the administration say the deficit cannot be slashed without increasing tax revenues.
Although the U.S. Treasury has so far received more than $40 billion in revenue in corporate taxes in June, the amount is a fraction of what is needed to keep the government operating.
The Treasury borrows on average about $125 billion per month to meet obligations such as paying elderly and disabled Americans social security benefits.
On top of that, more than $500 billion in U.S. debt is maturing in August. Analysts echoed the administration's interim projections.
"The Treasury's cash balance following the June quarterly tax date is slightly stronger than we expected, which may buy the Treasury a few extra days in August," research firm Wrightson ICAP said in a note to clients.
California Governor Jerry Brown and Democratic legislative leaders have reached a deal that bypasses Republicans and relies on higher tax revenue forecasts and some spending cuts to close a $10 billion gap.
 |
Photo by: Thierry Golden Gate Bridge |
That sets the stage for the state, which has become a symbol of political failure, for the first time in years to start a budget cycle with a spending plan in place. That's largely thanks to an improving economy that has helped California's rich.
Tax revenue is coming in far ahead of expectations, Brown told a news conference, adding that he decided to craft a budget with Democratic allies, who have majorities in both houses of the California legislature, when he determined he could not overcome a "religious reluctance" among Republicans to embrace tax extensions.
The mortgage crisis, high unemployment and a lingering multi-billion-dollar budget gaps had made the Golden State a butt of jokes and derision.
Now California's economy is perking up and rich taxpayers who are the key to state's revenue are doing relatively well and helping replenish the state's coffers.
The new plan projects a $4 billion increase in revenue and spending cuts that will be triggered if the funds fail to materialize, Brown said.
He said he would seriously consider a ballot initiative in 2012 to extend tax increases for several years and to tackle the state government's "wall of debt."
Support from the minority Republicans would have been necessary to put a tax measure in front of voters but Democrats can pass a budget without tax hikes using a simple majority.
State Senate President Darrell Steinberg and Assembly Speaker John Perez, both Democrats, will deliver the necessary votes to advance the plan through the legislature, Steinberg said in the news conference, monitored by webcast.
Legislative aides said lawmakers would begin voting on the plan on Tuesday.
Brown had vetoed a budget plan approved by Democrats earlier this month, saying it included "legally questionable maneuvers, costly borrowing and unrealistic savings."
Elements of the plan for the fiscal year, which starts on Friday, include parts of Brown's budget proposal and parts of the Democrats' budget that he vetoed.
Banking in Economic Rebound
Their joint budget plan features more spending cuts to state universities and courts, revenue from sales taxes that online retailers will be required to collect, assorted fees and deferring payments to schools and community colleges.
The plan also provides for taking $1.7 billion from redevelopment agencies, which they say they will contest in court, along with a reserve of just under $500 million, compared with the $1.2 billion reserve Brown had urged.
Brown initially tackled the state's shortfall, which topped $25 billion at the start of this year, with plans to slash spending. He pushed through $12 billion in cuts and other measures early this year and had hoped to extend tax hikes to avoid more dramatic cuts.
Republicans in the state Senate had offered to back tax extensions as part of a budget compromise if Brown supported their demands for a spending cap and changes to public pensions and state environmental rules. A deal, however, proved elusive and Assembly Republicans ruled out taxes.
"They're not able to enact the governor's massive tax increase because of Republican resolve," said a spokeswoman for Assembly Republican Leader Connie Conway.
Senate Republican Leader Bob Dutton criticized the deal between Brown and Democrat leaders, saying it is far from certain the state's revenue will strengthen as they expect.
"This latest budget is based on the hope that $4 billion in new revenues will miraculously materialize but does absolutely nothing to change government as usual," he said.
If revenue falls short, under the budget agreement, more spending cuts would be imposed, striking at programs Democrats are hoping to spare.
"This is the kind of accounting that can bite you in the backside," said Larry Gerston, a political scientist at San Jose State University.
U.S. Treasury Secretary Timothy Geithner is not expected to significantly shift the Aug. 2 date when the government will have exhausted all of its emergency measures to stave off default, a source familiar with the administration's efforts said Monday?
A. TRUE
B. FALSE
This latest budget is based on the hope that $4 billion in new revenues will miraculously materialize but does absolutely nothing to change government as usual," he said?
A. TRUE
B. FALSE
No comments:
Post a Comment