The impasse continues in Washington on raising the countries debt ceiling,  with Republican Leaders refusing to increase government revenues, "We can't raise taxes on the very people who create jobs, and keep spending money that we don't have," said House Speaker John Boehner (R-Ohio) on Friday.

President Obama has told his Democratic Caucus that he refuses to budge on letting the Bush-era tax cuts expire – namely the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the  Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) – and its all for a very good reason.

The Bush tax cuts had sunset provisions that made them expire at the end of 2010. Whether to renew the lowered rates (and how) became the subject of extended political debate, which was resolved by President Obama agreeing to a two-year extension that was part of a larger tax and economic package, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 – however it has come at a heavy price to our countries foreign debt.

The non-partisan Congressional Research Service has estimated the 10-year revenue loss from extending the 2001 and 2003 tax cuts beyond 2010 at $2.9 trillion, with an additional $606 billion in debt service costs (interest), for a combined total of $3.5 trillion.

In late July 2010, analysts at Deutsche Bank said letting the Bush tax cuts for those earning more than $250,000 expire would greatly slow economic recovery. However, Treasury Secretary Timothy Geithner said allowing the expiration would not cause such a slowing.

The Obama administration proposed keeping tax cuts for couples making less than $250,000 per year.