As politicians in Washington continue to debate how to prevent an unprecedented debt default on Aug. 2., House Republicans plan to push through a bill Thursday that aims to raise the U.S. debt ceiling while cutting $900 billion in spending over the next decade. The legislation, however, faces the threat of a presidential veto. U.S. President Barack Obama supports an alternative plan put forward by Senate Majority Leader Harry Reid. That plan offers comparable cuts, but would raise the debt ceiling by a record-breaking $2.7 trillion, thus avoiding a replay of the borrowing-limit debate until after the 2012 elections. Reid’s plan is also unlikely to pass without compromise, since Democrats don’t have enough votes to overcome Republican opposition. Analysts predict that failure to raise the nation’s debt ceiling by next Tuesday could be catastrophic for the still-recovering U.S. economy. It could also further de-stabilize the global economic climate.
Categories: Need to know
Boehner pushing through Republican plan to prevent U.S. default
Obama likely to use veto, support Democrat’s plan