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Tuesday, 26 July 2011

Republicans attack Obama as they push their budget plan

Republicans have lined up to renew their attack on US President Barack Obama over the country's looming debt default deadline.
At the Republican headquarters in Washington DC, House Speaker John Boehner said their budget plan was the most likely to pass Congress.
He said the Republican proposal was a "common-sense plan" that would put America's fiscal house back in order.
The US risks default without a deal to raise the borrowing limit by 2 August.
Competing plans The federal government runs a budget deficit that topped $1.5tn (£920bn) this year, and has amassed a national debt of $14.3tn.
IMF boss Christine Lagarde: "The clock is ticking"
In prime-time back-to-back TV addresses to the nation on Monday evening, Mr Obama and Mr Boehner accused each other of intransigence on the debt issue.
Speaking on Tuesday alongside Republican Representative Eric Cantor, Mr Boehner said: "I do think it's time for Congress to do its work - and the first step in the process is to make sure we pass this in the House.
"I do think that we're going to have some work to do to get it passed, but I think we can do it," Mr Boehner added.
He is pushing a two-step plan, a short-term bill to cut spending by about $1.2tn (£730bn) and extend the debt ceiling for about six months - a proposal rejected by President Obama.
Mr Boehner called on members of both parties to review the plan and consider supporting it when it arrived on the floor of the House on Wednesday.
"I would ask all of my colleagues - both Democrats and Republicans, to look at this common sense plan... that will avoid default and put America's fiscal house back in order," he said.
House Majority Whip Kevin McCarthy stepped forward alongside Mr Boehner on Tuesday and pointed out that although Mr Obama had said he opposes Mr Boehner's plan, the president had not threatened to veto it.
Mr Obama condemned the Republican plan on Monday during his primetime TV address, in part because it would require another round of debt limit talks in six months.
In the Senate on Tuesday, Democratic Senate Majority Leader Harry Reid challenged Republicans to back his competing plan - a no-taxes, government-cuts proposal to trim $2.7tn over a decade.
It would protect social programmes for the poor and elderly and a public pension programme - all popular among Democrats, while not raising new tax revenue.
The 10-year plan includes 1.2tn in cuts to defence and other discretionary spending and $1tn in savings from winding down the wars in Iraq and Afghanistan.
On Tuesday, House Democratic Whip Steny Hoyer said "maybe a few" members of his party in the House of Representatives may back the Republican plan.
Debt crisis options for Obama Administration

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