US Congressional Vote on Debt Issue Delayed

Posted July 28th, 2011 at 7:30 pm (UTC-5)
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A vote in the House of Representatives on a Republican plan to raise the U.S. debt ceiling and cut spending has been postponed.

U.S. media, quoting congressional sources, say the vote was delayed because Republican leaders are seeking more congressional support to pass a plan put forth by House Speaker John Boehner.

It is not clear how long the delay will last, but Republican aides say they still expect a vote to take place late Thursday.

Boehner's plan calls for raising the country's $14.3 trillion borrowing limit in exchange for billions of dollars in spending cuts. The U.S. may default on some of its debt if it does not raise the debt ceiling by August 2 .

Before the vote, House Minority Whip Steny Hoyer predicted no Democrats in the Republican-majority House will vote in favor of Boehner's bill. Senate Majority Leader Harry Reid said on his Web site the Democratic-majority Senate will defeat Boehner's plan if it passes the House.

Boehner's plan also has attracted criticism from the ultra-conservative Tea Party faction of the Republican party. Conservatives say it cuts too little spending.

Reid advocates a rival plan that he calls a compromise that incorporates many Republican goals. He says it would raise the debt limit, cut spending by $2.5 trillion, and abandon efforts to raise taxes.

White House spokesman Jay Carney says U.S. President Barack Obama is optimistic a compromise can be reached before the August 2 deadline. Carney says a successful compromise would significantly cut spending, set up a way to reform taxes and control spending on social programs, and lift the debt ceiling.

Without a deal on some kind of plan to raise the $14.3 trillion legal limit on borrowing by the deadline, the Treasury Department says it will not have enough money to pay all its bills. That could bring a default that would likely prompt rating agencies to cut the U.S. credit rating, bringing higher interest rates and hurting economic growth.