this is not an abstraction. if the united states government for the first time cannot pay its bills, if it defaults, then the consequences for the u.s. economy will be significant. and unpredictable. and that is not a good thing. >> the president insisted that a legislative deal to raise the debt ceiling is necessary by august 2nd and legislation should include both spending cuts and tax revenue increases. he explained that he does not mean raising income tax rates. instead, he wants to reduce or eliminate some of the corporate and personal loopholes in the tax code.