Obama declares end of tax breaks for wealthiest as debt deal passes Senate

Indonesia stock info - Obama declares end of tax breaks for wealthiest as debt deal passes Senate ; Mr Obama declared war on tax breaks for wealthy Americans yesterday after emergency legislation to avoid an economy-rattling government default was finally passed in the Senate.

On deadline day, after months of fierce struggling, the Senate's top Republican and Democratic leaders swung behind the bill, voting 74-26 to raise the debt ceiling by more than $2trillion.

The bill, which will cut federal spending by a similar amount over the next decade, passed despite Republican accusations that the deal was simply a sly façade before a brutal tax hike on the people.

Fears intensified today that the deal to raise America's debt ceiling will not stave off a credit rating disaster after the leading Chinese credit agency downgraded U.S. sovereign debt.

As an official downgrade of the country's crucial AAA rating inches closer, the Dagong Global Credit Rating Company announced a slide from A+ to A, citing doubts over Washington's ability to pay off its debts.

It comes after yesterday's debt deal triggered gloom in Wall Street where the stock market is on its longest losing streak since the financial meltdown of 2008. The Dow Jones yesterday had its worst day in more than two months, and closed below 12,000 for the first time since June 24.
It was the eighth consecutive daily drop for the Dow, which plunged 266 points, and seventh for the Standard & Poor's 500 index, which yesterday sunk to a 2011 low.

Rating agencies Moody’s and Fitch have confirmed their vital AAA credit ratings but warned of a downgrade if debt reduction measures are not put in place and the economy weakens.

Despite accusations of bias, the Chinese agency insisted its rating reflected market concern caused by the debt ceiling stalemate over the past week in Washington.

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