Blount County Democrats

Talking Points: Reducing the Deficit and Meeting our Obligations
· For the sake of our economy we must take action to reduce our nation’s deficit and get our fiscal house in order.
· President Obama wants the biggest deal possible and will meet with Congressional leaders every day until they come to an agreement.
· The President believes the best solutions to our fiscal problems will include shared sacrifice from all Americans. We can’t ask middle-class families and seniors to bear the brunt of higher costs and budget cuts. · The American people agree we need to find a balanced solution to our fiscal problems; one that asks the wealthiest Americans and specials interests to pay their fair share. That means ending tax breaks for millionaires and billionaires, and closing tax loopholes for oil companies, hedge fund managers, and corporate jet owners.
· Republicans in Congress, business leaders, and conservatives agree that we need to find a balanced approach that increases revenues so that we can reduce the nation’s deficit.
* Earlier this week, Senator Graham voiced support for generating revenue by closing tax loopholes.
* Conservative commentator Bill O’Reilly said this week, “Republicans need to accept the need to raise more revenue.”
* And recently, Warren Buffet said, “there is plenty of room on the revenue side with wealthy people like me. We’ve never had it so good. I mean our tax rates have never been lower than this and we’ve had it for 10 years and it’s shown in the great disparity of wealth that’s occurred in the last decade or so.”

· The President is open to making hard decisions and tough choices- now it’s time for members from both sides of the aisle to do the same. The President has expressed a willingness to make the tough choices when it comes to entitlement reform. That is why he put together a framework to make Medicare and Medicaid more efficient and stronger in the long run without shifting the cost of care onto our seniors or people with disabilities.

•The President also supports finding bipartisan solutions to strengthen for future generations the Social Security program.

· Both sides have made progress. To back off now would not just mean we haven’t solved our fiscal challenges, but also confirm the cynical view Americans have of their political leaders in Washington.
· The President believes that would be a mistake and that now is the time to show the American people that Washington can rise above cynicism and do big things for the future of the country.
· It’s unacceptable to keep kicking the can down the road- that’s what caused these problems in the first place.
· We must find balanced solutions that include shared sacrifice to make sure our government lives within its means and puts our economy in a better position for the future.
· A deal has to be struck before August 2nd so that America does not default on its obligations. Never before has America defaulted on its obligations, and to do so now would be catastrophic to our economy and our financial system.
· The plan that Senator McConnell put forth yesterday reiterates what leaders of both parties have already said, that defaulting on our bills that are past due is not an option. The President still believes this is a singular moment for leaders in Washington to significantly reduce the deficit in a responsible and balanced way.
· If we default on our obligations it will:
1. Force the government to stop, limit, or delay payments on a variety of legal obligations, including Social Security and Medicare benefits, salaries for the military, tax refunds, and interest on the national debt.
2. Cause interest rates for mortgages, car loans, and credit cards to rise.
3. Hurt families who have been saving money into their 401(k)s for their retirement or putting aside money for their children’s education.