By Andrew Taylor, AP, Sep 4, 2012
WASHINGTON (AP)—The Treasury Department said Tuesday that the national debt has topped $16 trillion, the result of chronic government deficits that have poured more than $50,000 worth of red ink onto federal ledgers for every man, woman and child in the United States.
The spiraling debt means that lawmakers and the eventual winner of the White House in November will have to pass a law early next year to raise the government’s borrowing cap from the current ceiling of $16.39 trillion. Passing such legislation last year proved enormously difficult and the nation’s credit rating suffered.
First, however, lawmakers will try during a post-election lame duck session to renew Bush-era tax cuts and head off a round of forced budget austerity as automatic budget cuts are scheduled in January to slam both the Pentagon and domestic programs. Those cuts were required by another failed set of budget talks last fall by a bipartisan “supercommittee.”
Treasury Secretary Timothy Geithner has said the government will likely reach its debt limit at the end of the year. However, Geithner has said he will be able to employ various “extraordinary measures” to keep the government operating until sometime early next year. Geithner would need to use these measures if Congress, as expected, fails to tackle the debt limit by year’s end.
GOP presidential nominee Mitt Romney promises sharp spending cuts and a balanced budget by 2020 if he wins the White House, but has provided little detail about how that might be accomplished.
For his part, Obama has declined to tackle the spiraling growth of benefit programs like Medicare and the Medicaid health program for the poor and disabled. His proposals to hike taxes on upper income earners have been repeatedly rejected by Republicans, but he promises to insist on them if he wins re-election.
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