Some thoughts as the debt limit nears

May 13, 2023
Cloudy day over US Capitol building_harold-mendoza-6xafY_AE1LM-unsplash1

The outlook remains a bit cloudy for reaching an agreement to prevent the United States from defaulting on its debt. (Photo by Harold Mendoza on Unsplash)

Many think the debt ceiling debate is just political posturing in Washington, D.C. However, the head of the nation's top consumer watchdog agency says we all should be worried.

"It's a big worry. Every family should be concerned,” Rohit Chopra, director of the Consumer Financial Protection Bureau, told CNN in an interview last week.

So, as we await Congressional action to keep the United States and its residents out of financial freefall, this weekend's multiple Saturday Shout Outs go to stories on the debt ceiling.

Some look at how defaulting could affect those of us well beyond the national capital's Beltway. Others are more hopeful, providing suggestions on how to get past this latest episode of the recurring debt ceiling saga.

Enjoy! Or freak out. The mood and choice is yours.

Social Security, Medicare, federal salaries: What payments may be delayed in debt ceiling standoff from CNBC personal finance reporter Greg Iacurci.

These states will be hit the hardest if the US debt ceiling standoff isn't resolved from CNN's congressional correspondent Lauren Fox.

If The US Avoids Default, You May Want To Thank Car Dealers, Real Estate Agents, and Local Bankers writes Howard Gleckman for Tax Vox, the blog of The Urban Institute and Tax Policy Center, where Gleckman serves as a Senior Fellow.

Of course, there are some tax-specific items.

Congress Should Raise Taxes on the Rich, But That’s a Totally Separate Issue from the Debt Ceiling says Steve Wamhoff at the website for the Institute on Taxation and Economic Policy (ITEP), where he's federal policy director.

Debt Limit Crisis Might Go Badly for the IRS writes tax historian Joseph J. Thorndike, director of the Tax History Project at Tax Analysts. His analysis is published in Tax Notes.

Some folks are getting creative as the deadline nears.

The Ingenious Lawsuit That Could Break the Debt Ceiling Impasse is discussed by The New Republic staff writer Timothy Noah in the left-leaning publication's The Soapbox feature.

Finally, here's your shot to reduce the debt. OK, not exactly.

It's an interactive article (the link will let you in without a subscription) from The Washington Post where you get to decide how to raise and spend money if you ran the federal government.

I hope these pieces and authors shed some light on the debt ceiling and what's at stake. Or at least keep you entertained while we wait for the standoff to end.

To that last point, let's all keep our fingers crossed that Congress, notably the hardcore right-wing segment of the GOP that's pressuring House Speaker Kevin McCarthy (yes, I am being judgy and picking sides), will agree on a deal that will keep the economy from tanking.

You also might find these items of interest:

 

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