With the recent major drop in the Chinese stock market, the President has ordered Congress to begin emergency planning on how to keep the failing stocks from crashing completely. One of the proposed plans is a national tax hike and even more budget cuts.
In a communication to the house leaders, President Obama states that because the United State's economy is so dependant on the Communist Chinese economy, a total market crash could plunge the U.S. economy into bankruptcy. Because the U.S. economy is already still in the recovery stages from the recent recessions, it would not take much to cause it to crash again and without the support of the Chinese, there would be no saving it this time.
In order to finance this support, President Obama proposes a raise in taxes to go into a fund for the Chinese as well as further budget cuts. It is unclear as to which budgets will be affected by these cuts as all budgets have been stretched already, however some suggestions include military spending, welfare, and education budgets. Both houses are to begin discussion on this matter immediately.
