Debt Deal

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Wednesday, July 20, 2011 - 8:56am

Lawmakers may have come up with a deal to break the dealock.

A House vote on Republicans' "Cut, Cap and Balance" deal was largely symbolic.

It is not expected to pass the Senate today and the President says he won't sign it.

What may work is a new deal six Democrats and Republicans are pitching.

Four trillion in spending cuts, including half a trillion to Medicare, lower taxes and a trillion dollars gained by closing tax loopholes.

North Dakota Senator Kent Conrad said, "The Congressional Budget Office would score this as a one-point-five trillion dollar tax cut."

Plus, the plan prevents Congress from easily getting around caps on government spending.

Oklahoma Senator Tom Coburn said, "It has to passed with 67 votes to ever get around any of the caps. That's gonna be highly unlikely."

Both sides praised the compromise.

Tennessee Senator Lamar Alexander said, "They've come to a bipartisan agreement, and I support it."

"I think that we're on the same playing field," said President Obama.

But there is very little time to work out the details.

Senate Majority Leader Harry Reid said, "We only have 13 days, 13 days, and there's a number of Senators who have said they'll do everything they can to stop the debt ceiling from being increased."
 

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