Facing impasse, Reid to offer his own plan
July 24th, 2011
05:26 PM ET
11 years ago

Facing impasse, Reid to offer his own plan

Washington (CNN) - A Senate Democratic aide tells CNN that “despite multiple offers from our side, the speaker has so far been unwilling to agree to any form of a two-step solution that President Obama would sign.”

And while talks continue, the aide said, Senate Majority Leader Harry Reid, D-Nevada, is “working on a proposal of at least $2.5 trillion in debt reduction” and may inform his caucus about that plan Sunday night.

Democrats believe the proposal meets GOP requirements that the debt ceiling be increased with dollar for dollar spending cuts. The aide would not describe what spending cuts would be included in the package, but it’s about $1 trillion higher than the spending cuts identified in the talks led by Vice President Joe Biden.

The proposal would not include any increase in revenues and would raise the debt ceiling until 2013.

Filed under: Congress • Debt • Deficit • Democrats • Harry Reid
soundoff (15 Responses)
  1. California Conservative

    Are the democrats FINALLY coming out with a plan written down or just more lies?

    July 24, 2011 05:31 pm at 5:31 pm |
  2. annie s

    No. No. No. Do not use this false crisis to cut spending unless revenues are raised as well. I am sick and tired of being force fed the Republican agenda by Democrats!

    July 24, 2011 05:40 pm at 5:40 pm |
  3. Myron8160

    Yall better wake up dems your dealing with a whacky group of teabaggers satan help us all

    July 24, 2011 05:44 pm at 5:44 pm |
  4. GOP = Greed Over People

    Wow, we Dems always cave in the final hours.

    No, revenue and possible cuts to Medicare?

    It should pass, though, and then we will liberals will be no better than the neo-Nazis in the GOP, as we allowed it to happen.

    July 24, 2011 05:51 pm at 5:51 pm |
  5. vic , nashville ,tn

    Money talks

    July 24, 2011 05:52 pm at 5:52 pm |
  6. SecedingfromTexas

    "The proposal would not include any revenue increases........"
    Unless someone can tell me otherwise, sounds like Harry Reid is throwing in the towel and caving to Republicans
    and Tea Party. They will lose me if they do.

    July 24, 2011 05:55 pm at 5:55 pm |
  7. avgjoe

    a plan from democrats.... but pretty sure the repuublicans will still say there is no plan.

    Cut, Cap, Balance was a terrible piece of legislation that didnt identify cuts, it simply said what would be cut. and didn't even touch entitlements. Also the debt ceiling wouldn't be raised till after states ratification

    July 24, 2011 06:05 pm at 6:05 pm |
  8. Mike Dallas

    "The irony of the situation at the moment, with markets opening tomorrow morning, is that the biggest threat to the world financial system comes from a few right-wing nutters in the American congress rather than the euro zone,"

    Stated the finance minister of the U.K., so agreement is now international that the GOP is full of neo-Nazis and they blame the GOP!

    Of course, that is what happens when we air our dirty laundry so publicly.

    July 24, 2011 06:12 pm at 6:12 pm |
  9. Anthony

    Don't worry, Democrats. There will be a revenue increase. The Bush tax cuts will expire in 2012. Republicans just do not know it yet. They are refusing to give up any of the tax cuts, but the Bush tax cuts will not renew on their own. Republicans, good luck in getting cooperation from Democrats on extending the Bush tax cuts next year, after you put the nation through this manufactured crisis.

    July 24, 2011 06:13 pm at 6:13 pm |
  10. nobama

    Welcome to the party Whispering Harry.Shouldn't you have proposed a budget, by law, 2 years ago. Nah, it's easier to sit back and criticize any plan offered by Republicans.

    July 24, 2011 06:39 pm at 6:39 pm |
  11. Bob Texas

    For the GOP its all about politics. They have no intention of any compromise. They care nothing about the people they just want the White House at any cost!

    July 24, 2011 07:22 pm at 7:22 pm |
  12. Chipster

    Boehner cannot agree to anything because the Tea Party wants to shut down the government. They're on a power trip to bring down the President and they don't care if they bring down the nation to do it. Even though Seniors have contributed to Social Security for decades, Republicans have made it sound like a handout and they want to dismantle it. I cannot believe Democrats have been agreeing to reduce benefits that Seniors paid and worked for decades to receive. TAXING seniors to pay for tax cuts for those earning $250,000 annually is simply insane: spelled G-R-E-E-D !

    July 24, 2011 07:31 pm at 7:31 pm |
  13. MAC

    The republicans should not trust the democrats to not lie to them like they did Reagen and Bush 41 by promising spending cuts and not carrying out their promise of cuts, to get tax increases. The cuts need to take affect year one not years 8,9,10. If Americans want social security and medicare/medicaid to stay the same, then the tax rate for FICA taxes need to be raised on everyone. If the social security checks are not out as scheduled, that means the administration has lied to America about social security and medicare being solvent and have already spent the money. I would trust a used car salesman before I would trust the lawyers and politicians in government. If Obama's budget is not cut the CBO says the deficit will increase 12 trillion dollars over 10 years so for you who cannot add that is 14.5 trillion plus 12 trillion equals 26.5 trillion dollar deficit in 10 years. Then think what your taxes will have to be raised to for paying the debt off.

    July 24, 2011 07:49 pm at 7:49 pm |
  14. S.B. Stein E.B. NJ

    I wonder what ever deal Harry Reid could come up with would every pass the House. I don't think that it could. There is going to be a problem because the House GOP wouldn't do any that inlcuded resetting tax rates to previous norms. Tax rates don't really kill jobs. It is making sure that policies that affect the businesses have some level of consistency is what helps some jobs grow.

    July 24, 2011 07:57 pm at 7:57 pm |
  15. Four and The Door

    Democrats believe the proposal meets GOP requirements that the debt ceiling be increased with dollar for dollar spending cuts.
    Of course, the cuts probably don't take affect until the year 2025...

    July 24, 2011 08:00 pm at 8:00 pm |