Obama schedules potentially ‘catastrophic’ debt-ceiling ‘fiscal cliff II’ for February

GOP legislators say they won’t allow him to borrow more money unless he agrees to reform long-term government spending.

For example, various GOP leaders say Medicare should be reformed to give recipients and providers financial incentives to avoid wasteful medical spending, and fewer payments should be made to the wealthiest retirees.

Other activists say the GOP should end the subsidies and tax breaks enjoyed by Democratic-affiliated groups. These include Hollywood companies, universities and nonprofit groups exempt from many income taxes, investors in taxpayer-funded green-energy companies, and the unions’ lobbyists who are indirectly funded by local government’s tax-free bonds, as well as state tax levies that are now exempted from federal taxes.

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