The agreement between the Democrats and the Republicans aims to prevent a catastrophic default on the US national debt. It was concluded on Saturday, but the text of the agreement was only known on Sunday. The International Monetary Fund (IMF) has warned several times against the “serious” consequences it would have for both the American and global economy if the parties did not reach an agreement. The US Treasury Department said the parties had until June 1 before the US would start defaulting on the debt – a situation that has never happened before. The US has a national debt of around 31,000 billion dollars. By raising the debt ceiling, which has been 31,400 billion dollars, the parties have prevented the country from defaulting on its debt. The negotiations have dragged on for several weeks. Indeed, the Republicans have demanded that the state sharply cut its expenses before agreeing to raise the debt ceiling. They believed that it is the expenses of the democratic government that must be kept down – not the debt ceiling that must be increased. Cuts for the tax authorities Finance Minister Janet Yellen has warned that the US money bin was about to run out. Photo: Shuji Kajiyama / AP Now, however, the political wings have reached a compromise. This means, among other things, that the tax authorities, the IRS, will receive less money than previously promised. Actually, the Democrats had promised the IRS a whopping $80 billion package, according to Politico. The money was supposed to go to America’s richest men more closely. Now the Democrats and Republicans have agreed to cut 21.4 billion of the 80 billion dollars, writes The Washington Post. – All Joe Biden is trying to do is find every single coin in every sofa of every single American to pay for his radical spending. Why should we, however, Republican Byron Donalds has stated, according to Politico. The well-known American think tank Brookings Institution calls the cut “a gift package for America’s richest tax evaders”. They believe the IRS has had too little money for decades, which means they don’t have the resources to investigate those who use more sophisticated methods to evade taxes. Several of the richest also hand in such long and cumbersome documents as documentation of income and expenses that it takes a long time to review them thoroughly enough, writes Politico. According to the newspaper, however, the cuts to the IRS may backfire, increasing the US national debt. Less money for those who have to collect taxes from America’s richest, could lead to less tax revenue, writes the newspaper. This means that the country will receive less money to pay off the debt. Increased demands on social security recipients The agreement also limits federal spending somewhat, but the result is far from the extensive cuts that the right wing of the Republicans demanded, and that the most liberal Democrats strongly opposed. The expenditure side, apart from what goes to the defence, remains more or less the same throughout the tax year 2023/2024. The increase will be one per cent the following year. At the same time, the requirements for those who receive food vouchers are increased. In the United States, around 40 million Americans receive help to obtain food with the help of food vouchers, which can be exchanged in shops for food. There are a number of requirements for who can get such coupons. As of now, childless adults ages 18-49 only get food stamps for three months over three years, unless they work at least 20 hours a week, according to CNN. Now the upper age limit is increased to 55 years. As a result, there will be even more people who are subject to requirements to work in order to receive food stamps. However, exceptions are made for war veterans, young people with a background in the child welfare system and the homeless. The work requirements for social security recipients are also being increased, according to the channel. The Republicans will probably consider this a victory. The Republican leader in the House of Representatives, Kevin McCarthy, must now get his party colleagues to vote for the compromise. Photo: Evan Vucci / AP Ensure that the agreement passes through Congress The agreement in principle will be voted on in Congress on Wednesday, but Republican leader Kevin McCarthy in the House of Representatives has claimed that 95 percent of his party colleagues will vote for the agreement. President Joe Biden also says he is confident of an agreement on the debt ceiling, and that he can thus sign the law so that it comes into force. – The agreement represents a compromise, which means that not everyone gets what they want. Such is the responsibility of governing, Biden wrote on Twitter after the news of the conclusion of the agreement first became known. The agreement stipulates that the debt ceiling can be raised for a two-year period. Thus, Biden and his administration avoid doing this exercise once again before the November 2024 presidential election.
ttn-69
Called a “gift package” for the richest tax cheats – news Urix – Foreign news and documentaries
