As the final deadline gets closer, the parties move further apart
Thursday 28 July 2011
Related articles
High anxiety over a possible default by the United States on its mountainous debt was undiminished last night, amid further wrangling on Capitol Hill on a possible way out of the crisis, with Republicans still pitted against Democrats and even against each other.
The US Treasury slapped down market hopes that there could be leeway in its 2 August deadline, when it says that tax receipts will no longer be sufficient to cover expenditures and it will have to stop paying some bills, or even interest on the national debt. The country will be "running on fumes" after next Tuesday, White House spokesman Jay Carney said.
In a closed-door meeting withparty members, the Republican House Speaker, John Boehner, pleaded for party solidarity, saying he needed an "army" behind him as he faced further negotiations with Democrats in both chambers and with the White House. Aides indicated that more Republicans would fall in line with Mr Boehner's own blueprint to end the crisis and suggested that a vote in the House that had been put off from yesterday could come as early as today.
The delay in the vote, announced late on Tuesday, highlighted the difficulties Mr Boehner has been facing because of a rebellion from the Tea Party faction of his party, which has been reluctant to support his own plan for ending the stand-off, calling it insufficient. Even if Mr Boehner could muster enough Republican votes for his plan, there is little hope of it winning approval in the Democrat-controlled Senate. Aware that all paths to a deal on Capitol Hill remained strewn with obstacles, the White House said it was crafting its own version that would incorporate elements both of the Boehner plan and of a competing plan by Senator Harry Reid, leader of the Democrat majority in the upper chamber. "We're working on a Plan B," Mr Carney said.
Matters for Mr Boehner were made worse late Tuesday when the non-partisan Congressional Budget Office determined that his plan initially to cut $1.2 trillion (£731bn) in spending over 10 years while raising the debt limit by a first tranche of $900bn, would in reality trim only $850bn from spending projections. That stiffened opposition to it by radical conservatives.
The CBO similarly found that the Reid plan was overstating its own potential for cutting the deficit by about $500bn, and would cut just $2.2trn from the country's deficit.
In the wake of the CBO analysis, aides to Mr Boehner were last night scrambling to rewrite parts of his plan to ensure that the cuts it would deliver would outstrip the amount by which the debt ceiling would be raised. A spokesman promised to keep the "no tax rises" pledge.
The White House meanwhile has served notice that even if the Boehner plan were to pass Congress it would face a veto from President Barack Obama, because it represents only a start to the process that would inevitably require further negotiations on a longer-term solution next year, when the President will be in the throes of seeking re-election.
-
Gay couple beaten in park urge MPs to moderate language on gay marriage
-
Strewth mate. Aussies wave goodbye to Britain as it becomes too pricey to stay
-
World news in pictures
-
Far-right French historian, 78-year-old Dominique Venner, commits suicide in Notre Dame in protest against gay marriage
-
Oklahoma tornado latest: Obama pledges support for 'as long as it takes' to rebuild the suburb of Moore
- 1 'He was lucky he didn't die' - George Michael fell out of speeding car onto M1 motorway, according to eye witness
- 2 Gay couple beaten in park urge MPs to moderate language on gay marriage
- 3 After woman sells virginity for $780,000, here are the results of our prostitution survey
- 4 Far-right French historian, 78-year-old Dominique Venner, commits suicide in Notre Dame in protest against gay marriage
- 5 'It was just like the movie Twister': Man survives Oklahoma tornado by taking refuge in horse stall
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
Visit York
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
iJobs Money & Business
Programme Change Manager
£850 - £1000 per day: Orgtel: Programme Change Manager - Banking - London - £8...
Operations Analyst
£180 - £230 per day: Orgtel: Operations Analyst - Leading Bank in the City of ...
Finance Business Analyst - Banking - £500pd
£500 per day: Orgtel: A top tier banking client urgently requires Finance Busi...
Senior Finance Project Manager
£425 - £550 per day: Orgtel: Senior Finance Project Manager - £550 - Bristol -...
Day In a Page
The price of pacifism
Jason Isaacs: Groupies, theatre bores and James Bond
Sealand: 'Micronation' or illegal fortress?
Legend of James Hunt has set Hollywood hearts racing
Macklemore: 'I don't have moderation'



Comments