Beyond The Shutdown, There’s A Bigger Battle Brewing

by Scott Horsley October 01, 2013 5:02 PM

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The Capitol is mirrored in its reflecting pool early Tuesday, as the partial federal shutdown began. But there’s a battle still to come in which the stakes are even higher.

J. David Ake/AP

This week’s government shutdown could be just a warmup for an even bigger budget battle in a couple of weeks.

Congress has to raise the limit on the amount of money the federal government is allowed to borrow by Oct. 17. If the debt ceiling is not raised on time, President Obama warns that Washington won’t be able to keep paying its bills. Continue reading “Beyond The Shutdown, There’s A Bigger Battle Brewing”

Experts Forecast the Cost of Failure to Compromise

By NELSON D. SCHWARTZ

Published: December 30, 2012

Even if President Obama and Republicans in Congress can reach a last-minute compromise that averts some tax increases before Monday’s midnight deadline, experts still foresee a significant drag on the economy in the first half of 2013 from the fiscal impasse in Washington.

David Goldman/Associated Press

Shoppers in Atlanta. The confidence of consumers has eroded in the absence of a deal to avert a harsh budget package on Jan. 1.

While negotiators in the capital focus on keeping Bush-era tax rates in place for all but the wealthiest Americans, other tax increases are expected to go into effect regardless of what happens in the coming days. For example, a two percentage point jump in payroll taxes for Social Security is all but certain after Jan. 1, a change that will equal an additional $2,000 from the paycheck of a worker earning $100,000 a year. Continue reading “Experts Forecast the Cost of Failure to Compromise”