New are plans now tabled which are being considered by US lawmakers, in order to resolve the impasse on the debt ceiling situation, which been so contentious to date. President Barack Obama of the US, met with senior legislators of Congress for discussions about the budget, said the White House.
First the President met with Democratic leaders and was set to then to meet later with Republicans.
Jay Carney, spokesman for the White House also seemed to signal a shift in position by the President to finally resolve the impasse, in less than the two week deadline when the United States government could possibly default on the debt.
Apparently, the administration could be in favor of accepting an increase, on a short term basis in the $14.3 trillion US borrowing ceiling if an agreement to cut the deficit is included. However, this extension would only last a few days, in order to allow legislators enough time to give approval for the deal. This said, the leading proposal presented, to break the deadlock was received only with mixed reviews.
Nancy Pelosi, House minority leader, gave a mere mildly positive response to the bipartisan plan that came from the Senate. Pelosi said:
“It has some good principles in it.”
Meanwhile Howard McKeon, a senior Republican responded with the complaint that the plan would reduce defense spending to a great degree and would unacceptably stem military retirement and health benefits. In a memo to his peers on the House armed services committee, he wrote:
“This proposal raises serious implications for defense and would not allow us to perform our constitutional responsibility to provide for the safety and security of our country.”
This proposed resolution, compiled by Senate leaders, presently known as the “Gang of Six” cuts the deficit by nearly $4 trillion over the period of a decade, utilizing a combination of new tax monies and spending cuts.
If lawmakers can’t come to a consensus on a deal by August 2nd to raise the country’s borrowing ceiling, the government will default.
It does look like lawmakers are willing to compromise to a degree on the deal, but no hard and firm resolution has been reached to date, leaving Congress in a position where …the discussions still continue…
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