There are intensified debate sessions going on between Democrats and Republicans regarding how to make an agreement over debt limit increase and spending cuts between two political parties. Earlier debate between two parties was started with an initial spending cut offer of $1 trillion as a down payments Read More, but democrats have argued that they will not consider elderly medicare spending cut until republican allow to increase tax.
Also Republicans separately demanded debt limit increase in equal amount of spending cuts. US budget deficit is expected to hit $ 1.4 trillion and stay there for years if substantial spending cut deal will not work out.
According to the different aspects of the debate topics, the deal is far from reach as of now. More than 150 Economists are backing Republicans demand of debt limit increase should be counter balanced with equal amount of spending cuts according a report from Reuters.
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