It’s all about controlling debt in Washington these days. Congress battles it out over raising the U.S. government's borrowing limit.
For investors the buzz word is "default." As the U.S. Treasury says, it will be forced to default on its obligations if Congress does not raise the $14.3 trillion debt ceiling, which caps how much it can borrow by August 2.
In an exclusive interview with Maria Bartiromo, House Budget Committee Chairman Paul Ryan (R-Wis.) told Bartiromo that "spending is the problem."
He said he believes that both sides can work it out, but “the problem is we haven’t gotten any counteroffers,” Ryan said. “If we don't get a handle on spending, we will have a debt crisis," Ryan warned.
Ryan proposed $6.2 trillion in cuts.
"We have offered a budget that lays it out. We have no budget from the Senate and no proposal from the White House that deals with this problem. We haven't had credible alternatives from the other side of the aisle," Ryan said.
Ryan also pointed out "the president wants a $2.4 trillion increase in the debt limit to get through 2012."
When asked about taxes, Ryan told Bartiromo that the administration is bringing the tax rate up to 45 percent.
Ryan pointed out with state taxes added to that figure, "We are taxing small-business owners over 50 percent in 2013. And 50 percent of Americans get their jobs from small businesses." That "will kill jobs and growth," Ryan said.
With the battle now on party lines, House Minority Whip Steny Hoyer (D-Mary.) offered advice for both parties before tomorrow's meeting at the White House, to ensure progress on a deal on the debt ceiling and cutting the deficit. Hoyer said, "We need to check our rhetoric and our politics at the door on Thursday and every day after, until we get this thing resolved."
House Speaker John Boehner said the meeting will be "fruitless until the president recognizes economic and legislative reality."
Donna Burton contributed to this article.
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