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John Boehner, Harry Reid Debt Ceiling Plans Create Stalemate In Congress

CHARLES BABINGTON   07/27/11 12:09 AM ET   AP

WASHINGTON — Stung by revelations that his plan would cut spending less than advertised, House Speaker John Boehner on Tuesday postponed a vote on a debt-ceiling measure that was already running into opposition from tea party conservatives. The move came just a week before an Aug. 2 deadline for staving off the potential financial chaos of the nation's first-ever default.

With time running short, the speaker promised to quickly rewrite his debt-ceiling legislation after budget officials said it would cut spending by less than $1 trillion over the coming decade instead of the promised $1.2 trillion. The vote originally scheduled for Wednesday is now set for Thursday. That may give Boehner more time to hunt for votes, but it gives Congress and the White House even less time for maneuvering.

Meanwhile, public head-butting between Democratic President Barack Obama and the Republicans showed no sign of easing. The White House declared Obama would veto the Boehner bill, even if it somehow got through the House and the Democratic-controlled Senate.

For all that, it was the tea party-backed members of Boehner's own party who continued to vex him and heavily influence the debt and deficit negotiating terms – not to mention his chances of holding on to the speakership.

Their adamant opposition to any tax increases forced Boehner to back away from a "grand bargain" with Obama that might have made dramatic cuts in government spending. Yet when Boehner turned this week to a more modest cost-cutting plan, with no tax increases, many conservatives balked again. They said the proposal lacked the more potent tools they seek, such as a constitutional mandate for balanced budgets.

Rep. Jim Jordan of Ohio, chairman of a large group of conservative Republicans, sent a tremor through the Capitol Tuesday when he said he doubted Boehner had enough support to pass his plan. The Boehner bill would provide an immediate debt ceiling increase but would require further action before the 2012 elections.

Obama strongly opposes that last requirement, arguing that it would reopen the delicate and crucial debt discussions to unending political pressure during next year's campaigns.

The president supports a separate bill, pushed by Majority Leader Harry Reid in the Democratic-controlled Senate, that would raise the debt ceiling enough to tide the government over through next year – and the elections.

Boehner wasn't helped when presidential candidate Tim Pawlenty and the groups Tea Party Patriots and Tea Party Express criticized his plan. A worse blow came when a congressional analysis said his plan would produce smaller savings than originally promised. Of particular embarrassment was a Congressional Budget office finding that Boehner's measure would cut the deficit by just $1 billion next year.

Boehner's office said it would rewrite the legislation to make sure the spending cuts exceed the amount the debt limit would be raised. Adding a political touch, it accused the Democrats of declining to put forward specifics subject to the same sort of review.

Earlier, responding to the conservative Republican opposition, Boehner quickly went on Rush Limbaugh's radio show, then he began one-on-one chats with wavering Republicans on the House floor during midday roll call votes.

"He has to convince a few people," Rep. Tom Petri, R-Wis., observed dryly from a doorway.

A serious, almost dire urgency ran through Boehner's efforts. The clock was ticking down to next Tuesday's deadline to continue the government's borrowing powers and avert possible defaults on U.S. loans.

Congressional veterans say a final-hour bargain can't be reached until both parties irrefutably prove to themselves and the public that neither the Democrats' top goals nor the Republicans' can be reached in the divided Congress.

Moreover, Boehner's grasp on the speakership could be weakened if he fails to pass the debt-ceiling plan that bears his name. Assuming no more than five Democrats support the measure – the same number that backed a GOP balanced-budget bill last week – Boehner can afford to lose no more than 28 of the House's 240 Republicans.

His allies predicted he'll make it, and Boehner got a vocal endorsement from his sometimes rival, Majority Leader Eric Cantor, R-Va. But holdouts were not limited to the much-discussed freshman class, elected in the tea party-fueled 2010 elections.

"He can't get my vote because I felt like that, for long-term solutions to this problem, all these promises we make in cutting spending never seem to occur," said Rep. Phil Gingrey, R-Ga. " I've been here nine years and I've never seen it happen yet."

Six-term Rep. Jeff Flake of Arizona, a long-time critic of deficit spending, said he also was leaning against Boehner's bill even though he knows a tougher measure cannot be enacted. "Obviously you have to weigh that against passing something that just doesn't solve the problem," Flake said.

Major business groups weighed in. The U.S. Chamber of Commerce urged support of Boehner's bill, while the conservative Club for Growth denounced it as too weak.

While Boehner searched for votes, some Americans seemed to edge closer to notion that the Aug. 2 deadline might pass without a solution. The stock market fell again, although not dramatically. California planned to borrow about $5 billion from private investors as a hedge against a possible federal government default.

The White House spoke with veterans groups about what might happen to vets' benefits if a deal isn't reached. Obama has said he can't guarantee Social Security checks and payments to veterans and the disabled would go out on schedule.

The Senate worked on other issues, waiting to see if Boehner's bill would pass the House and come its way. Reid, D-Nev., said the Boehner bill could not pass his chamber.

Reid has his own plan. Like Boehner's, it would identify about $1.2 trillion in spending cuts to the day-to-day operating budgets of government agencies. Reid's proposal, however, would require only one congressional vote to raise the debt ceiling before the 2012 elections. And it counts an extra $1 trillion in savings from winding down the wars in Iraq and Afghanistan.

Both proposals would create a bipartisan congressional commission to identify further deficit reductions, especially in major health care programs such as Medicare and Medicaid.

For seven months, tea party-backed House members – freshmen and veterans alike _have rewritten congressional traditions. Speakers typically can twist arms, offer favors and issue veiled threats to round up the needed support on tough votes. It's possible Boehner will be able to do so on the debt-ceiling matter.

But many tea party activists abhor political compromise. They insist that their elected officials stand on principle, regardless of the consequences.

"A lot of the tea party guys owe certain support groups," said Rep. Walter Jones Jr., R-N.C. He said he had not decided how to vote on Boehner's bill.

Freshman Rep. Trey Gowdy, R-S.C., bristles at the notion that tea party-influenced newcomers are sheep-like ideologues willing to risk default. "We're not a bunch of knuckle-dragging, mouth-breathing Neanderthals," Gowdy said. "We're interested in answering what we perceive to be the mandate, which is to stop the spending and change the way Washington handles money."

Gowdy said he was leaning against Boehner's proposal.

But freshman Rep. Allen West, R-Fla., a tea party favorite, felt otherwise.

"This Boehner plan, does it have everything that I want in it?" West said. "Absolutely not. It is the 70-75 percent plan that we can go forward with."

Petri, a 33-year House veteran, said Boehner may need the votes of 35 to 40 Democrats, which Democratic leaders say is impossible.

Asked how Boehner will get out of his predicament, Petri paused and said: "When I think of it, I'll give him a call."

___

Associated Press writers Laurie Kellman, Jim Abrams, Steven Ohlemacher, Alan Fram, Donna Cassata and Larry Margasak contributed to this report.

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WASHINGTON — Stung by revelations that his plan would cut spending less than advertised, House Speaker John Boehner on Tuesday postponed a vote on a debt-ceiling measure that was already running...
WASHINGTON — Stung by revelations that his plan would cut spending less than advertised, House Speaker John Boehner on Tuesday postponed a vote on a debt-ceiling measure that was already running...
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COMMUNITY PUNDITS

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murphthesurf3 12:50 PM on 07/26/2011
There is significant consensus in the Reid and Boehner Proposals
The key difference: how to raise the debt ceiling

Common Points:
$1.2 trillion in reductions to discretionary spending.

The formation of a bipartisan “supercommittee,” which would try to find consensus on a larger deficit-reduction package immune to  Read More...
02:17 PM on 07/31/2011
Surferlaments:

You are the closest to the truth. In general when constituents fail to look at the broad picture you continue to believe the lies. Look at the numbers--who's benefitting the most, where and to whom is the money centrally located and who's governing. Following the money is your likely bet. When did the elderly and those recipients on Social Security/Medicare/Medicaid ever acquire enough money let alone riches, to send our nation into a spiraling deficit? When did their pockets abundantly overflow with wealth and riches to send Wall Street, the Corporations and mainstreet into a tailspin crash? Or, when did they amass such gross power that through their decisions and lobbying their congress, policies were legislated that deregulated all the financial arms of the US government, thereby rendering these same people helpless with no protections to speak of? Washington DC is there to do the bidding of financial institutions, big business, Wall Street, the Fed and the Treasury, and the global construct. It's behavior and attitude of the politicians you really should focus on. We are not the priority -- only to the extent that these politicians keep their jobs are we any consideration.
10:44 AM on 07/29/2011
In reply to Rockhard:

We are in some agreement on the time lines. You, however, have not been able to access the information of our direct experience with the program. Because Dempster Street is also a State Highway and a heavily, constantly traveled commuter route, there were three entities involved in the construction: Stim, the Village of Morton Grove, and the State of Illinois. We were an early accepted project because monies had been allocated in previous years in planning for this reconstruction. The village is significantly older than 100 years, and the infra-structure was both out of date, and worn out. We suffered with the strike in 2010 but the "under-pinnings" were in place before its onset. The street was driveable during the winter - no detours or blockages. The greater share of the "visible" was completed prior to our legendry 4th of July celebration. At this time the final "top coat" is complete and we are all enjoying the improvements in traffic.

I mention all of these things to illustrate to you that one should never TAR and FEATHER an entire project system because SOME failed to abide by all of the stipulations prior to beginning the project. My illustration of a successful project is provided to encourage (and hopefully guide) others on the ways in which to achieve a successful project in their own community.
09:55 PM on 07/27/2011
The Republicans created this deficit during the previous president's time in office. They created the horrible economy. They fight against anything this President tries to do because their number 1 objectiuve is to see him fail. Nothing else matters. This President Obama must go down in history as a failure, according to Repubs. They will do NOTHING to cooperate with anything he presents. President Obama, I say to you: GET FIRED UP! Be strong, sir. You cannot fix the country's deficit on the backs of the middle class and elderly. Insist that we go back to the Clinton's tax rates. Businesses made money. Wall Street made money. The Middle class went to work. I am a CAPITALIST. But, I believe in Capitalism with a CONSCIENCE. Come on , Mr. President. YES YOU CAN!!!
12:25 PM on 07/27/2011
People elected Obama because he would work better with others than Repubs do, and/or for his progressive agenda. We had better decide which one we want when. I totally agree that Obama has given a lot more than he's got as he tries to work with others, and want him to stop somewhere, but if we criticize him if he gives anything up, or compromises at all, then we might as well join the Tea Party.
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HUFFPOST SUPER USER
haimchaim
11:07 AM on 07/27/2011
Tension over US debt .. Pres Obama's keen abilities to organize & analyze haven't slowed .. it's only thru becoming more deeply connected to the role of healer that the US will find true path in financial history ..
08:42 AM on 07/27/2011
Your article is so incorrect.

The Federal Government spending under W Bush and Obama has been driven by outrageous spending levels on Defense. The rise in the debt service is also becoming ridiculous.

At this point, a downgrade helps our major creditors which include China and OPEC (Saudi Arabia) If we pay more interest, they will buy more of our Treasury Bonds. Plain and simple
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HUFFPOST PUNDIT
dragonlady620
My karma will run over your dogma
07:00 PM on 07/27/2011
The only way to increase revenue in the short run is to raise taxes, which suck any gas left in the economy. Economic activity is stagnant.

If you agree that revenues are flat back to 2002~2004 timeframe then the government must take a hard look at itself to right size and downsize.
04:54 AM on 07/27/2011
Actually, who can protest or oppose the idea that the GOP is using to obstruct Mr Obama`s wishes about the debtceiling? They are right, the budget must be in balance. So lets bring it in balance. Make the teenmum in Paris Texas pay the trillions of debt or, the disabled soldier that lost his legs in Bush`s wars. The swim in dollars, they have to pay. And do not touch the income of the rich, they have been working for their money. Don`t make Banks pay tax, that idea will ruin the nation. Don`t tax the people that export jobs, they are good for the economy.
Maybe the average american should spend some timme on internet, I found a good place to visit: October2011.org it might get some asses from chairs and, rescue the Nation
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HUFFPOST PUNDIT
dragonlady620
My karma will run over your dogma
HUFFPOST SUPER USER
Fran04
01:07 AM on 07/27/2011
The Republican want a balanced budget amendment. Well, California has a balanced budget act, Proposition 58, or the California Balanced Budget Act which was Gov. Arnold Schwarzenegger's plan to resolve California's budget problems. Well guess what California's problems got worst. The people reelected Jerry Brown who is trying to implement a package of spending cuts and yes, tax increases to fix California's problems. Californians found out the hard way that you can't "cut" your way out of a fiscal problem.
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HUFFPOST PUNDIT
dragonlady620
My karma will run over your dogma
02:01 AM on 07/27/2011
It didn't work for Reagan, Bush 1, or Bush 2 either. They never learn. This was posted earlier: http://www.theatlantic.com/politics/archive/2011/07/the-chart-that-should-accompany-all-discussions-of-the-debt-ceiling/242484/ This is a loophole that Obama wants to close, and that the Republicans have rejected: http://www.epi.org/publications/entry/pm120
HUFFPOST SUPER USER
Fran04
12:48 AM on 07/27/2011
This nation has gone down the wrong path. The Tea Party and Republican Party have shown themselves to be composed of people who care only about the accumulation of wealthy. Their greed is destroying this country. Instead of rejecting their lust for power and money, we have accepted and even embraced their actions. IPADs, big screen TV, houses with two cars garages, video games, and luxury vacations are now the “things" that we strive for as a nation. However, are we willing to sacrifice our children and grandchildren's education, health and safety for things? Are we willing to sacrifice our parents and ours retirement and health for these "things". I know that it would be wishful thinking to expect all of the Republican and Tea Party representatives to change their mind and raise the debt ceiling without restrictions and eliminate corporate tax loopholes and tax cuts which favor the wealthy . However I pray that enough of them open their eyes. If not I pray that President Obama will use the power of the 14th Amendment and raise the debt ceiling. If he resorts to this action, I pledge that I will work and pray for his reelection and the removal of enough Republicans to return control of Congress to the Democrats.
12:15 AM on 07/27/2011
"Last-minu­te Congress" politics has been a terrible game to play. Nobody likes the idea, and neither do I. If our country's financial crisis can be saved, let us consider trying out some of these ideas instead of just talking about them:
1) Reduce talking in Congress. For every minute Congress talks, each Americans loses another dollar.
2) Reduce by 99.5% all US military troops present in Afghanista­n and Iraq by October 2011; reduce funding to these countries by 66-75% and 80-85% respectively. We should also return most of our troops stationed in South Korea and Germany.
3) Reduce Social Security checks for each senior citizen by $10-20
4) Reduce or prohibit the treatment of physical injuries self-inflicted by a victim's stupidity at hospitals
5) Repeal the 2001 Bush Budget Tax Cuts
6) Repeal the 2001 No Child Left Behind Act
7) Double the tax-rate on alcoholic beverages sold
8) Increase by 150% the tax-rate on cigarettes sold
9) Re-examine the nuclear family system as the central model of American society.
10) Prohibit by law any further out-of-wedlock births (excluding those pregnant at the time of passage)
11) Tighten eligibility requirements to receive welfare from the states
12) Dissolve all current "domestic partnerships," and legalize "common-law marriages" in all states
13) Reduce usage of lighting and unnecessary consumption of electricity in all businesses and housing,
14) Increase taxes on big businesses and the wealthiest in America, &
15) Reduce medicare
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MULE2009
Locomotive Engineer
11:22 PM on 07/26/2011
Leaders? Incompetants? Manufactured crisis over power and who gets government $$$. No one would want any of these guys running anything. The "market" will solve this problem no matter what. The tea party types and their constituants will find out quickly you do need government and it's cheaper than the private sector rip-offs possibly on the horizon.
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HUFFPOST SUPER USER
MULE2009
Locomotive Engineer
11:12 PM on 07/26/2011
What a national disgrace. A leaderless country Obama, Boehner and Reid.For the good of the nation, new elections should be held to replace these incompetants in all three branches of government. A class of 2 year olds could solve the issue. People unwilling to compromise in a democracy is truely undemocratic. The inability to compromise is equal to treason. What are you really for? the confederacy?
11:06 PM on 07/26/2011
"Last-minute Congress" politics has been a terrible game to play. Nobody likes the idea, and neither do I. If our country's financial crisis can be saved, let us consider:
1) Leaving Afghanistan and Iraq;
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10:52 PM on 07/26/2011
Republican plan = cut, cap, balance

Democrat plan = lie, cheat, steal
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MULE2009
Locomotive Engineer
11:25 PM on 07/26/2011
Republican plan= Crap
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MULE2009
Locomotive Engineer
11:27 PM on 07/26/2011
Republican plan = bankruptcy
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surferlaments
Help me Rhonda...
03:59 AM on 07/27/2011
the country is almost bankrupt now because of both parties. i know it might be hard.... but if you, and all, were really honest and looking at the real facts..... we, the citizens have been sold out by both parties.