The Congressional/Presidential/Fed/Treasury debate over raising the debt ceiling is the very thing that has divided this country from the beginning: the size and scope of government.
The Democrats and current administration favor larger government, hence higher taxes and less personal freedoms. The true Republicans -- not RINOs -- in the form of tea party conservatives and libertarians, believe in small government, hence lower taxes and more personal freedoms.
The Democrats believe that in order to reduce the deficit they need to increase revenues -- directly impose very high taxes on the rich. They only are willing to cut spending as a negotiation tactic. They never want to give up their social programs because it is those programs that keep the masses more and more dependent on the very government they want to control.
Class warfare has served them well so there is no need to stray from the blueprint. They pick on the rich because jealously is easy to manipulate. They do it under the guise of protecting the middle class, because they are the actual voters. All higher taxes even on specific classes impact us all.
-- Higher marginal rates influences incentives in the economy because financial decisions are based on after-tax returns.
-- As tax rates rise, the tax base shrinks and ultimately reduces revenue.
Taxes are stifling to everything except larger government, a government that will ultimately cave in on itself. Payroll taxes, federal income taxes, state income taxes, local/city income taxes, Medicare, Social Security (Ponzi scheme), corporate taxes (a hidden tax we all pay), property taxes, sales taxes, etc. are unrelenting for the producers of society.
Democratic policies are easier to sell because they play on emotions. Most vote on emotion, not on facts and logic. The Obama/Pelosi/Reid plan is to increase taxes. Higher taxes fail every time. They do nothing to shrink the size of government.
This debate is to the core of our ideologies. If anything, taxes need to be decreased. Tax loop-hole eliminated as they are nothing more than the product of American political corruption.
Long-term, America would be best served by not raising the debt ceiling. It would be best served by reducing tax rates, but forcing everyone to share in the burden. It would be best served by eliminate tax loopholes. It would be best served by reducing expenditures across the board. it would be best served if entire departments were done away with -- Energy, Education, Labor, Housing & Urban Development to name four.
It will never happen because politics and want to do things; doing thing requires money; money means higher taxes.