“We have reached an agreement,” declared U.S. President Barack Obama during a packed press briefing at the White House Sunday night. In his brief announcement, Obama said the new deal to raise the debt ceiling “will allow us to avoid default and end the crisis that Washington imposed on the rest of America.”
Obama’s announcement, which came just hours before the government’s deadline for paying social security and EBT checks, reflected a positive uptick in the stock markets and a rise in the value of the dollar abroad.
But the black middle class — which is rapidly shrinking in America — will likely bear the brunt of the hefty tax increases that are sure to come as a result of the new deal.
While the dramatic resolution briefly lifted a cloud that had threatened the still-fragile economic recovery, critics said in the long run the middle classes would bear the brunt of the country’s massive debt, with increased taxes set to cover for the White House’s reluctance to cut public spending. Source
“It isn’t the greatest deal in the world,” said House Speaker John Boehner, “but it shows how much we’ve changed the terms of the debate in this town.” He added the agreement was “all spending cuts. The White House bid to raise taxes has been shut down.”
But experts warn that the 12-person bipartisan committee, which will meet to approve the agreement, could still opt to impose a hard-hitting tax hike, which would likely be a crushing blow to the black middle class.