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Keyword: debtincreaseinmay

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  • For Cruz, Reid & Boehner: If the interest pymt on the federal debt is done 1st, how can we default?

    05/07/2013 7:00:09 AM PDT · by Laissez-faire capitalist · 6 replies
    5/7/2013 | Laissez-Faire Capitalist
    We have had a tax increase implemented. Now, with the additional revenues (taxes) added onto what we were previously taking in each year ($2.3-2.4 trillion dollars), we will still be able to make the interest payment (about $425 billion annally or $35 billion per month) on the federal debt outstanding... And thus we cannot default. After that, we use the remaining tax dollars to pay for Social Security, then Medicare, Medicaid, unemployment benefits, food stamps and a very large portion of our military budget. So... why do we need to borrow another $1 trillion plus in May?