NEW YORK (Walter Brandimarte and Daniel Bases) - A U.S. deficit reduction plan that promises $4 trillion in savings over time would be a "good downpayment" on getting the country's strained public finances under control, said John Chambers, chairman of S&P's sovereign ratings committee.
S&P has warned it may cut the United States' top AAA credit rating even if a deal on raising the government's debt ceiling is not accompanied by a credible plan to cut the deficit.
Republicans and Democrats have clashed over the role tax cuts should play and are pushing separate plans, both of which fall short of $4 trillion in savings.
Republicans have refused to raise the country's $14.3 trillion borrowing limit without a deal, and Treasury says it will run out of money to pay its obligations by August 2.
(Editing by Padraic Cassidy)
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