Congress finally took action this week, to keep us all from going over the fiscal cliff. But there are still several big financial challenges looming.
We are inching ever closer to the debt ceiling. President Obama wants Congress to raise the ceiling to keep America afloat. But Kentucky Senator Rand Paul opposes that idea, except under one specific condition.
Sen. Paul: "Ya know we owe $16 trillion. We're borrowing over a trillion dollars every year. And it just seems like we had that battle last year; we're gonna have it again this year. I've said there's one condition I would vote to raise the debt ceiling, and that's if we attach a balanced budget amendment to it and amend the constitution to say you can no longer borrow money that you don't have. You have to actually balance your books every year."
Gene Birk: "But what are the chances of that happening?"
Sen. Paul: "Hm, pretty slim."
Senator Paul says the biggest drain on our budget is entitlements: Medicare, Medicaid, and Social Security, which he says takes up two-thirds of our budget.