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Tuesday, July 26, 2011

Obama team threatens to veto Boehner debt plan - 26th July 2011

While waiting for Congress to make its next move, the Obama administration today threatened to veto the two-step debt reduction plan put up by House Speaker John Boehner -- though they're pretty sure it won't come to that.

"The speaker's proposal cannot pass the Senate, will not pass the Senate, will not reach the president's desk," said White House spokesman Jay Carney.

Carney had nicer things to say about a plan put forth by Senate Majority Leader Harry Reid, D-Nev., but acknowledged it might not pass the Republican House.

Hence the need for compromise, Carney said, echoing the theme of Obama's speech Monday night.

In those remark, Obama said, "I've told leaders of both parties that they must come up with a fair compromise in the next few days that can pass both houses of Congress -รข€“ and a compromise that I can sign."

Carney said today, "We have a divided government. We have a two-party system. No party controls every branch of government. Compromise is the only option."

Boehner's two-step plan would first increase the nation's $14.3 trillion debt ceiling by $1 billion, along with $1.2 trillion in budget cuts over the next 10 years. The debt ceiling increase would be good for about six months Read More