Sunday, July 31, 2011

Lawmakers Say Debt Deal Within Reach

Democrats in both houses of Congress the crisis on Sunday afternoon, the Senate leader, saying he hoped the Senate will vote soon on a compromise agreement, which will increase the debt limit of the nation and to avoid default on its debt than ever.

The Senate, Harry Reid, majority leader told reporters who gathered around him when he left office representative, Nancy Pelosi, House Democratic leaders, he hoped, you're not going to vote on Sunday evening.

Reid later issued a statement saying it had signed an agreement, the consent of the Senate's Democratic members of the bar.

There are indications that an agreement had found enough support from Democrats in the Senate. But that is not enough support among Democrats more liberal and conservative, tea supports Republicans in the House of Representatives.

Pelosi said she will meet with House Democrats on a compromise measure on Monday.

"All of us may not be able to maintain, or perhaps none of us support it," said Pelosi said Democrats will examine the plan.

Must pass both houses, the legislation commitment to close one of the worst of partisan political struggle to swallow the U.S. government in recent years.

Democrat Reid and Minority Leader Mitch McConnell, the Senate, a Republican, said with optimism earlier in the day the agreement was extended, but Washington has remained silent on a summer day than a hot politicians continued to huddle together at the last minute negotiations on the plan.

But Sunday night at the White House, McConnell and Rep. John Boehner Speaker of the House was silent.

Privately, officials said the last stumbling block for possible budget cuts in the defense of the country for the next two years. Republicans want less. Democrats have insisted on more, in an attempt to protect the national accounts greater reduction.

Reid said he was "cautiously optimistic" while McConnell said that the talks were "very close". But as the day wore on, and legislators have continued to respond to the crisis in the capital, the political extremes of both parties criticized the agreement and threatened to try to block the agreement, even with the deadline for the default choice for the U.S. at midnight Tuesday.

Without legislation, rather than the Treasury can not pay all their bills, raising the threat of errors, administration officials say they cause devastating damage to the economy.

If approved, however, a compromise must be to protect America's credit in the book to reassure investors on financial markets around the world and eventually reverse the losses spread across Wall Street in recent days that the threat of default payment has increased.

The general contours of this new plan, the agreement is being developed in negotiations with McConnell and Vice President Joe Biden will increase the federal debt limit in two stages, at least 2.2 trillion dollars, enough to overcome the Treasury after the 2012 election.

Reducing government spending would be spread over more than a decade. Thousands of programs - parks, tax authorities and the Ministry of Labour of accounts between them - can be cut to levels seen last year.

No benefit cuts were examined by the pension system of Social Security and Medicare, a federal program that pays for medical care for the elderly. However, other programs ran for savings. Taxes are likely to increase.

Each contract must be approved in the Senate controlled by Democrats and Republicans ruled the House before going to the White House for the signing of Obama. With little time, there were two rooms, the day, President House, John Boehner was in his office.

The Senate began the day to reject efforts to promote democratic approach to solve the debt problem. Rate and 50-49, or 10 does not have 60 votes needed to proceed as proposed legislation, Reid last week. This plan would make $ 2400000000 in deficit reduction over 10 years, while the increase of $ 2.2 trillion debt ceiling. The result of this vote, and should not directly influence the negotiations behind the scenes is a compromise.

Undaunted, Mr. Reid said then that "We hope and believe, you can do."

Officials familiar with the negotiations said McConnell had been in constant contact with Mr. Biden, who has played an influential role in negotiations for several months.

Negotiations on a two-stage system to increase the debt limit and reduce costs.

The first step will be implemented as soon as more nearly 1000000000000 debt limit and reduce a little 'more than ten years.

This will be accompanied by the creation of a new congressional committee, which would be late November to recommend or $ 1.8 billion in deficit reduction in specific benefit programs such as Medicare, Medicaid and Social Security and reform the tax code. This will reduce the deficit by increasing the debt second limit, which will be needed next year.

If the Committee did not reach its target of U.S. $ 1.8 billion, and Congress does not approve the final recommendations of 2011, lawmakers would then have to vote on a proposed constitutional balanced budget amendment.

If not approved, the spending cuts totaling $ 1.2 trillion automatically enter into force automatically and increase the debt limit by the same amount.

Social Security, Medicaid and food stamps are exempt from the automatic cuts, but payments to doctors, nursing homes and other Medicare providers will be reduced, as it gives insurance companies that offer an alternative to those run by Government Medicare.

The officials who described the steps on condition of anonymity, citing the sensitivity of the discussions and the possibility that the data are subject to change.

The new deal could mean a classic compromise, the triumph of divided government, with Obama and the Republicans say they have been achieved.

As the President requested that the agreement will allow the debt limit increase sufficiently to overcome the Treasury after the 2012 elections.

But little change, it was Obama's proposal to extend the tax lot at the end of the salary in 2011 is not included and will not be his call to unemployment benefits in the long run among the victims of the slowdown economy.

Republicans win to reduce the cost of a little more than increase the debt limit, when needed. In addition, the tax increase will close, if recommended by a bipartisan commission, which must include six Republicans and six Democrats. Conservative Party's campaign for Congress to approve an amendment to the balanced budget for the Constitution of the United States rose.

Congressional Democrats have long insisted that Medicare and Social Security benefits are not cut off the victory for them in the proposals under discussion. However, they would have to absorb even more cuts hundreds of federal programs that are included in the Bill Reid, who many Democrats supported the symbolic vote on the floor at home on Saturday.

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