President signs debt deal.

The most recent news from Capitol Hill is the passing of the Budget Control Act of 2011 from both the House and the Senate. Headlines have been streaming with news of the bipartisan Budget Control Act agreement, but with so much information out there it is hard to understand the impact the bill will truly have on businesses and citizens.

The bill entails a $900 billion debt ceiling raise and a government spending cut of about $2.4 trillion that will take place over the next decade. Taking a look at raising the debt ceiling by $900 billion makes some citizens jump but understanding its reasoning is important.  Prior to the last minute passing of this bill our great country was in a red-flag warning of having our AAA credit rating becoming downgraded. If our credit rating had been downgraded we would see the impacts as taxpayers in several forms including: