With less than 11 days until the August 2nd deadline, Congress is considering no less than five plans to raise the debt limit and lower the deficit.
House Minority Leader Nancy Pelosi (D-CA) offered the latest plan Friday afternoon, comprising of $1.5 trillion in spending cuts, but not including new taxes or entitlement reform.
According to TalkingPointsMemo, Pelosi outlined her plan to a small gathering of bloggers and reporters, saying Democrats are “willing to bite the bullet and make serious cuts in discretionary spending.”
“hat’s a non-revenue path. I don’t like it at all but it doesn’t go near our entitlements,” Pelosi reportedly said.
The emergence of yet another plan is the latest sign negotiations are dangerously fracturing.
Congress must not only increase the debt limit by August 2 to ensure the government can meet its obligations, but it must also address the growing federal deficit to meet the demands of the credit rating agencies. Standard and Poors has set its sights on a deal approaching $4 trillion in cuts, a bar the Pelosi proposal would not reach, assuming it could earn Congressional support.
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