Why Washington’s “Debt Limitation” Issues Can Affect You – Lexington-Fayette, Kentucky

Lexington-Fayette, Kentucky 2021-09-15 18:45:53 –

Washington — Terms and phrases such as “debt cap”, “reconciliation”, and “continuous resolution” may sound like complex government policies and procedures.

But problems and policies are consuming Washington rapidly, each of which can affect your life.

Debt problem

The debt cap is a legal limit on the total amount of federal debt that the government can incur.

It currently amounts to $ 28.4 trillion.

Treasury Secretary Janet Yellen told Congress last week that “special measures” are currently being taken to keep U.S. debt below that number, but she has run out of resources and needs to procure it. Said there is.

Yellen emphasized that “the United States will not be able to fulfill its obligations for the first time in our history” unless Congress raises it by the end of October.

How does it affect you?

Social security checks and veteran benefits can be delayed.

People’s 401k can lose value as default threats disrupt the market.

As for where the debate is, Democrats can raise their debt limits themselves. But they want the Republicans to raise it with them, and the Democrats claim they did it when former President Trump took office.

Republican leaders said they were no longer interested in contributing to Democratic spending.

Keep the government open

The next important discussion involves “continuous resolution”.

This is important because, in addition to debt issues, the federal government has been set to run out of funds on October 1.

A “continuous resolution” is required to maintain the operation of the federal government. If that doesn’t happen, national parks will be forced to close and federal workers may lose their salaries temporarily.

The Democrats so far appear to be ready to go through something to keep the government running. However, the vote is not yet scheduled.

Reconciliation controversy

All of this is happening as the Democratic Party is trying to pass President Biden’s trillion-dollar spending bill through the “reconciliation” process without Republican support.

What is a settlement?

It allows the bill to pass with a simple majority vote in the Senate, rather than the usual 60 votes normally required to break filibuster.

The bill imposes taxes on high-income earners and businesses that earn more than $ 400,000, creating new programs such as paid family vacations and free community colleges, while taxing you and your employer. May affect.

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