Path To A Debt Limit Deal

Path To A Debt Limit Deal
8:44 pm July 14, 2011, by Jamie Dupree

While a lot of rhetorical barbs are still being tossed around Washington, D.C., suddenly the way seems clear for a modified plan from the Republican Leader of the Senate, which may lead to an increase in the the debt ceiling and lay the groundwork for sizeable budget cuts.

While the proposal from Sen. Mitch McConnell (R-KY) was roundly rejected by many Republicans earlier this week, it is gaining more traction in both parties, as Senate Majority Leader Harry Reid is working with McConnell on the matter.

"What may look like less than optimal today, if we're unable to get to an agreement, might look pretty good a couple of weeks from now," said Speaker John Boehner, when asked about the McConnell plan at a Thursday news conference.

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The plan would give President Obama the authority to raise the debt ceiling in three parts, by $700 billion, $700 billion and $900 billion.

The Congress would not vote directly on those increases, but could reject them with a resolution of disapproval - an unlikely outcome.

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http://blogs.ajc.com/jamie-dupree-washington-insider/2011/07/14/path-to-a-debt-limit-deal/

The downside would be:

1) Republicans aren't forced to vote to raise the debt ceiling. This would be devastating for them, but if they don't give power up to Obama it's something they'll have to do.
2) It obviously makes Obama solely responsible for increased debt. The ads will say "Barack Obama raised the debt ceiling by X.X trillion dollars to fund his out of control government spending.

The upside would be that if no deal is reached and there's a financial catastrophe, that obviously would be very bad for him (but- potentially- good for democrats in general).

explaining a lot about this (he actually wrote a bill that was passed in Congress!). If you didn't see it, watch the repeat or check it out on his site. It's the opening segment of the show.

Thanks! :hi:

Maybe because he's into the cuts.

why is that?