How One Senator Would Avoid DefaultOct 11 2013
The nation would not default were Congress to refuse to raise the debt ceiling according to Richard Burr, the Republican senator from North Carolina. There’s the steady stream of payroll taxes flowing into Washington, he says, and besides:
“We always have enough money to pay our debt service. You’ve had the federal government out of work for close to two weeks; that’s about $24 billion a month. Every month, you have enough saved in salaries alone that you’re covering three-fifths, four-fifths of the total debt service, about $35 billion a month. That’s manageable for some time.”
So let’s take away the paychecks of the 800,000 furloughed government workers and have them pay the interest on government borrowings. Thanks to the senator for helping to explain why we have already called his state the “nastiest” in the union.
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