The Congressional Budget Office (CBO) reports that House Speaker John Boehner's (R-OH) revised debt limit plan would cut $917 billion over the next decade, which is more than he is proposing to lift the debt ceiling by $900 billion. In a statement, he wrote, "The Republican proposal includes real spending cuts and reforms that will restrain future spending."
Debate and a vote on House Speaker John Boehner's (R-OH) debt reduction legislation was postponed at least one day in order for the Speaker to rewrite his bill. The Congressional Budget Office (CBO) released an initial analysis of his plan, which said it would cut $850 billion over ten years, less than the $1.2 trillion Boehner claimed it would save and less than he proposed to lift the debt limit.
Additionally, Senate Majority Leader Harry Reid (D-NV) also postponed debate of his debt ceiling proposal until at least Thursday. Media reports say he is waiting to see the outcome of Speaker Boehner's bill in the U.S. House.
Although the Speaker's proposal is facing numerous hurdles with the defection of some of the most conservative members of his party, media reports indicate that his plan is seeing a resurgence. Rep. Mike Pence (R-IN) spoke on the floor of the House this morning and called on his colleagues to have an "open mind."
But some Republicans have come out in opposition. Rep. Jim Jordan (R-OH), a conservative member of Congress, is one of several House members who said he would not support it. He said it does not cut enough spending and he is opposed to creating a bipartisan committee to determine additional savings.
Responding to the CBO report in a statement Tuesday evening, Speaker Boehner said, "We promised that we will cut spending more than we increase the debt limit – with no tax hikes – and we will keep that promise." He is rewriting his plan.
The House Republican conference met this morning and Speaker Boehner opted not to talk to reporters, a rare occurrence after a week of dueling news conferences by both parties.
Meanwhile, CBO released an analysis of Senator Reid's proposal to cut spending by $2.7 trillion. It said it would save $2.2 trillion over ten years, also less than Senator Reid claimed, but more than Speaker Boehner's plan.
Senator Reid said Tuesday that Boehner’s bill is “dead on arrival” in the Senate partly because it would require the President to ask for another debt ceiling increase next year. Senator Reid said he is “open to compromise,” leaving the door open for an alternative bill to be drafted. But time is running low before the August 2nd deadline imposed by Treasury Secretary Timothy Geithner.
The stalemate has led House Democrats to suggest that President Obama invoke the 14th amendment and lift the debt ceiling, without Congressional authorization. White House Spokesperson Jay Carney said, "The President does not have the authority to raise the debt ceiling."
On the Washington Journal, guests discussed the debt limit debate. Rep. Earl Blumenauer (D-OR) appeared followed by Rep. Tom Graves (R-GA).