Parties Seek for an Economic Debate

The week witnessed the Senators getting back to Capitol in a bid to enter the long standing debate over the economy, prior to getting home for the upcoming summer break.

The Obama White House and Democratic Congressional leaders have claimed their main focus was on triggering the recovery from the troubling waters of recession.

The recent data compiled by the Government last week, extended a formal confirmation on the earlier signs of recovery becoming sluggish, with a 2.4% second-quarter growth rate that is deemed to be insufficient in order to pose a significant impact on the 9.5% jobless rate.

Surging budget deficits are claimed to widen the debt to some implacable levels, without resorting to reductions, higher taxes or both, claimed a new analysis by the Congressional Budget Office, last week.

However, Republicans have posted that the tax cuts imposed by Bush should be implemented on permanent basis, despite mulling over the fact that doing away with such taxes could lead to a significant reduction in deficits over the long term.

As per the budget terms unleashed by Mr. Obama in February, $33.5 billion would be included in the 2011 deficit, if the Bush tax cuts were imposed for yet another year.