No deal yet over US default as deadline looms

An immediate deal to prevent the United States from falling into a devastating default remained out of reach today as political factions - congressional Republicans, Democrats and President Barack Obama - remained unable to overcome differences on spending and taxes.

The Democratic-controlled Senate is all but certain to kill a tea party-backed bill passed in the Republican-controlled House of Representatives earlier this week. The legislation insists on deep government spending cuts and congressional passage of a constitutional balanced budget amendment in return for raising the US debt ceiling by Aug. 2.



House of Representatives Speaker John Boehner said today that Republicans controlling the lower chamber are willing to compromise on legislation increasing the government's borrowing authority.



"Frankly, I think it would be irresponsible on behalf of the Congress and the president not to be looking at back-up strategies for how to solve this problem," Boehner said. "At the end of the day, we have a responsibility to act."



A Senate plan resurrected by the so-called "Gang of Six," a bipartisan panel of three Republicans and three Democrats, lost much of its luster Thursday after members of Congress from both parties heaped criticism on the measure. Obama had said on Tuesday the deal met the broad outlines of his vision for reducing the debt.



One small opening appeared Wednesday when White House spokesman Jay Carney said Obama would agree to a short-term debt ceiling increase - for a matter of days - but only if a plan like the one drawn up by the Senate panel was already agreed to in principle. Obama had previously insisted he would veto any interim measure. He is looking for a comprehensive deal that includes big spending cuts and large increases in tax revenue.



Many Republicans are bound by a pledge to constituents not to increase taxes and to lower them when possible.



An interim deal that could produce a fallback compromise is the work of Senate Minority Leader Mitch McConnell. It would give Obama broad new powers to obtain increases in the government's borrowing unless blocked by veto-proof two-thirds margins in both the House and Senate. It calls for modest spending cuts and no new tax revenues.



Many conservative Republicans are in an uproar over the McConnell plan, and more than 70 House members signed a letter circulated by Republican Rep. Jim Jordan promising to oppose the proposal.



Any deal that finally is reached - and there was not assurance one would be - must come together quickly.



Reid said Tuesday that the head of the Congressional Budget Office has told him it could take two weeks to come up with an official cost estimate for even a relatively modest package of spending cuts. That means lawmakers may end up voting on a measure without knowing for sure how much it would save.



Then there are the problems of moving the debt limit increase through the Senate, where the rules allow any single member to force delays.



Parliamentary experts say that if the Senate takes up the debt limit measure on Saturday, it could take more than a week, until Monday, Aug. 1, to pass the measure through that chamber, give the House time to consider it and make changes and then gain Senate approval one more time.



"It's daunting, but it's doable," said Marty Paone, a parliamentary expert with three decades of Senate experience. "If you want to assume the worst, that's how long it will take."



Obama met separately with congressional Democratic and Republican leaders at the White House Wednesday afternoon. None of the participants reported any progress.

AP

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Installation Manager

£35000 Per Annum: The Green Recruitment Company: The Green Recruitment Company...

Tax Investigations Manager/Senior Manager

£60000 - £70000 per annum + Benefits: Cameron Kennedy Recruitment: This rapidl...

Scrum Master - Southampton, Hampshire - Excellent Package

£40000 - £60000 per annum + Excellent benefits: Deerfoot IT Resources Limited:...

Senior Scrum Master - Hampshire - £47k

£47000 per annum + Excellent benefits: Deerfoot IT Resources Limited: Key skil...

Day In a Page

A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

A History of the First World War in 100 Moments

Peace without magnanimity - the summit in a railway siding that ended the fighting
Scottish independence: How the Commonwealth Games could swing the vote

Scottish independence: How the Commonwealth Games could swing the vote

In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

A writer spends a night on the streets

Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

UK's railways are entering a new golden age

New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

Conchita becomes a 'bride' on Paris catwalk

Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
Pétanque World Championship in Marseilles hit by

Pétanque 'world cup' hit by death threats

This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

Why did we stop eating whelks?

Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
10 best women's sunglasses

In the shade: 10 best women's sunglasses

From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

World Cup final: Messi? Mascherano is key for Argentina...

No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice