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Lawmakers Ready to Resume Debt Talks
(IRN) -- U.S. senators are returning to Washington Tuesday to resume talks about the debt ceiling.

Democrats and Republicans remain split on raising the debt ceiling. Republicans say they will approve an increase only if it doesn’t rely on tax increases and includes major spending cuts. Democrats want to cut tax breaks and loopholes for the wealthy.

The two senators from Illinois are split on the issue. "The debt ceiling is America renewing its mortgage," said U.S. Sen. Dick Durbin (D-Ill.) "It really says we will pay our bills."

"I'm against providing a $2.4 trillion blank check to the executive branch," said U.S. Sen. Mark Kirk (R-Ill.)

The Treasury Department warns of rising interest rates and a falling dollar value if the debt ceiling is reached and the U.S. defaults on its debt obligations. Strictly speaking, the ceiling of $14.3 trillion was reached in May, but the Treasury has used inter-fund borrowing and other mechanisms since then to avoid hitting a wall. The deadline beyond which those maneuvers will no longer be possible is Aug. 2.

Increasing the debt ceiling allows the country to borrow money to pay existing debt.

The House of Representatives is set to return to Washington on Wednesday to take up the issue as well.

(Illinois Radio Network)
07 05 11 by Newsroom
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