Obama: Deal raises debt ceiling and reduces deficits
July 31st, 2011
08:58 PM ET
12 years ago

Obama: Deal raises debt ceiling and reduces deficits

Washington (CNN) - President Barack Obama announced Sunday an agreement with congressional leaders would extend the federal debt ceiling and reduce deficits.

He said that, under the debt agreement reached by congressional leaders from both parties, which must still must be approved by lawmakers, a bipartisan commission would report back by November with suggested cuts and potentially revenue increases to address the nation's budget deficit.

"At this stage, everything will be on the table," Obama said of this second round of cuts, which are in addition to an agreed-upon $1 trillion in cuts over the next 10 years.

Obama said the debt reduction plan that's been backed by congressional leaders - but that still must be approved by the House and Senate - "ensures that we will not face this kind of crisis in six months, in eight months, or in 12 months."

Filed under: Congress • Debt • Deficit • President Obama
soundoff (13 Responses)
  1. Four and The Door

    Excellent results! Cut spending by at least as much as the debt level increase and don't raise taxes. Excellent way to do it. Good job, Speaker Boehner and good decision, President Obama!

    July 31, 2011 09:02 pm at 9:02 pm |
  2. T'sah from Virginia

    The president has spoken, and I kind of agree with this proposal. The trigger would have to be further explained but it sounds somewhat fair in the future.

    Now we will see what the CONGRESS will do. They SHOULD agree since the word BALANCE is in it and maybe they will CUT the CrAP it’s not BALANCEd approach they were trying to push!!!

    July 31, 2011 09:05 pm at 9:05 pm |
  3. A Kickin` Donkey

    I don`t think we have a deal yet. The President went on the air to pressure fringe members of Congress to support this.

    July 31, 2011 09:13 pm at 9:13 pm |
  4. They ought to change from the elephant to the hippo...

    And the revenue increase are ... where...? The balanced approach that was needed is ... where? So, the American people have been lied to ... yet again..?

    I wonder what would happen if we actually DID have a Democrat in the White House!

    July 31, 2011 09:30 pm at 9:30 pm |
  5. Lost in Texas FOREVER

    so I am guessing that like the Republicans fought for, revenues were OFF the table, corporate jet owners still have there loopholes, big oil still gets their tax breaks so just WHAT did the Republicans give up in this so called historic deal??? What puzzels me even more is why do the Repulicans and the far right seem to dislike President Obama so much...like a parent with a spoiled brat he seems to give them everything they want.

    July 31, 2011 09:51 pm at 9:51 pm |
  6. S.B. Stein E.B. NJ

    The problem is that the tea people are far too influencial and have no concept of what needs to get done. Grover Norquist has contributed to the problem with his mistaken idea that taxes should never be raised. I hope that this commision would come back and state that tax rates either need to go up or could stay the same with many (if not all) deductions taken out to speed the reduction in the amount we as a country owe.

    July 31, 2011 10:25 pm at 10:25 pm |
  7. TB

    The moment of truth has finally arrived! Now we are going to see whether or not the congressional tea baggers are more interested in doing what the right thing for this country, or if they are absolutely intent on destroying our country's economy in hopes that they can sucessfully blame our financial turmoil on President Obama and ensure his defeat in 2012...

    Only their votes are going to tell...

    July 31, 2011 10:35 pm at 10:35 pm |
  8. fernace

    I'm relieved the government finally saw fit to do their jobs. This debacle has been extremely worrysome for the working class Americans, who will still be the hardest hit! Glad to hear we don't have to go through this again in the months to come, But worry about my family & friends who's safety net programs have probably taken a hit, or will after lawmakers put in their 2 cents in Nov. What ever happens, We The People should never forgive or forget this debacle, & how Congress was so willing to sell out the country & the citizens for their own special interest agendas ($$$)! We should all be ready to "discuss" it at the polls in November!!

    July 31, 2011 10:53 pm at 10:53 pm |
  9. Claudia, Houston, Tx

    The only thing that's understandable at this point is that the Asian market is responding well but the details of what it means to the Middle Class, seniors and others is yet to see.

    August 1, 2011 12:15 am at 12:15 am |
  10. kat

    I smell a RAT or is that a DemocRAT? This went a little too soon. And BHO has his big birthday/campaign celebration in Illinois? Something's not right. I hope we can get a solution but I don't trust anythin BHO, Reid or Pelosi is involved in. They are too anxious to get something to get them past the 2012 election. Surely people aren't stupid enough to re-elect this NUT

    August 1, 2011 01:30 am at 1:30 am |
  11. shoegazer

    If"everything is on the table",how about a serious cut in military spending? Take what amounts to $20,000.plus an hour,
    twenty-four hours a day,three hundred and sixty-five days a year since Jesus Christ was born to cover ONE YEAR of the military budget.ONE YEAR......time to helm in the military industrial complex and starting looking after the countries own citizens.The flag is fading and the hubris is generally lost amongst those of other countries.Can anyone out there say.."Roman Empire"?

    August 1, 2011 01:58 am at 1:58 am |
  12. Wise1Speak


    Just like U.K. Prime Minister Neville Chamberlain appeased Hitler by ceding parts of Czechoslovakia for a FAKE PEACE, and then waving an empty piece of paper claiming he had a contract with Hitler that would ensure peace . . . .

    . . . President Obama and Senate Leader Reid have done effectively the same thing. They have ceded both hardworking and out-of-work middle-class Americans, along with Unions and WWII “Rosie-the-Riveter” seniors that depend on Social Security & Medicare, over to Tea Party Republicans for more savaging and degradation by November 2011.


    August 1, 2011 03:31 am at 3:31 am |
  13. Beverly

    It is time to recall the tea partiers, and/or vote them out of office before they ruin this country. Tea Party, similiar to the Republicans are cult members. They band together like Jim Jone followers.

    August 1, 2011 07:47 am at 7:47 am |