Daily Tax Update - June 20, 2011: Short-Term Debt Ceiling Increase May Be Considered

SHORT-TERM DEBT CEILING INCREASE MAY BE CONSIDERED:  Senate Republican and Democratic leaders hinted yesterday that they may consider a short-term debt ceiling increase if agreement cannot be reached on a longer-term debt reduction deal.  Negotiators are hopeful to reach a consensus by July 1st.

Senate Minority Leader Mitch McConnell said yesterday, "The president and the vice president, everybody knows you have to tackle entitlement reform.  If we can’t do that, then we’ll probably end up with a very short-term proposal over, you know, a few months.  And we’ll be back having the same discussion again in the fall."

Senate Majority Whip Richard Durbin said that he hopes the Biden participants can agree "at least on a short-term budget agreement that leads to passing the debt ceiling ahead of time."  Durbin added, "Progress is being made.  We shouldn’t wait until high noon" to raise the debt ceiling because "it will mean higher interest rates if we don’t."

PRESIDENT ISSUES STATEMENT ENCOURAGING FOREIGN INVESTMENT:  Today, President Obama issued an official statement encouraging foreign direct investment in the United States.  The statement said, "The United States reaffirms our open investment policy, a commitment to treat all investors in a fair and equitable manner under the law, and I encourage all countries to pursue such a policy.  My Administration is committed to ensuring that the United States continues to be the most attractive place for businesses to locate, invest, grow, and create jobs.  We encourage and support business investment from sources both at home and abroad."  The statement added, "In a global economy, the United States faces increasing competition for the jobs and industries of the future.  Taking steps to ensure that we remain the destination of choice for investors around the world will help us win that competition and bring prosperity to our people.  Consistent with our national security and while ensuring a level playing field for American investors, we will do just that."

The President’s statement can be accessed here.

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