GOP to Produce New Debt Plan By Sunday Afternoon

Katie Pavlich

7/24/2011 9:06:00 AM - Katie Pavlich

UPDATE II: The White House has promised to veto any plan that doesn't save President Obama's re-election bid.

President Barack Obama's chief of staff says the president will veto any last-minute debt package from Congress unless it extends the nation's borrowing limit into 2013.

Daley was asked on NBC's "Meet the Press" if Obama would veto a plan that doesn't extend the limit into 2013, and Daley said: "Yes."

That threat isn't sitting well with GOP Sen. Tom Coburn of Oklahoma. He calls it "a ridiculous position because that's what he's going to get presented with."

 

UPDATE: According to Roll Call, $800 billion in revenue still on the table in new plan:

Speaker John Boehner on Sunday dangled the possibility of a comprehensive agreement to raise the debt ceiling and pare down the debt and deficit over 10 years, saying his final offer to President Barack Obama that included $800 billion in revenues through tax reform was still on the table.

However, the Ohio Republican was pessimistic about the prospects of reviving such a deal in time to meet the Aug. 2 deadline to avoid a U.S. default and said his focus was on negotiating a new plan with the bipartisan Congressional leadership that is based on the parameters of the Cut, Cap and Balance proposal that passed the House last week before promptly failing to garner even one Democratic vote in the Senate.

“It may be pretty hard to put Humpty Dumpty back together again. But I’ve never taken my last offer off the table,” Boehner told “Fox News Sunday” host Chris Wallace. “I’m going to continue to work with my colleagues in both parties to develop a framework within [the Cut, Cap and Balance plan]. It could come together, but it’s not available yet.”

House Republicans are expected to submit yet another debt ceiling proposal this afternoon with hopes of calming Asian markets before they open. John Boehner confirmed on Fox News Sunday that the new legislation will come in two parts, that it is not "physically possible" to do a deal in one. The first part includes a short-term debt ceiling hike in return for matching or greater spending cuts. The second part allows for a longer term debt ceiling hike with a plan to reduce the deficit through spending cuts, however, as I wrote yesterday, spending cuts may be left up to Senate committees, which would be controlled and led by democrats. At this point, GOP leadership will not include tax hikes in the new proposal. This will be the third proposal submitted to the Senate and President from the House and as Boehner also pointed out on Fox News Sunday, Senate democrats still haven't passed a budget. (It's day 817 since they did, in case you were wondering).

Not one time in this whole process have Senate Democrats or the White House passed a budget, put a budget out there or even put plan out there.

Chances of the democrat controlled Senate killing the latest and third proposal from republicans are high since last night Senate leadership repeated that a deal that doesn't extend passed 2012 is "unacceptable," proving they have an interest in keeping this issue out of the news just in time for Barack Obama's re-election.  Treasury Secretary Timothy Geithner reiterated the 2012 extension, saying a deal must extend the debt ceiling limit in order to take the country past the 2012 election....hmmm...I wonder why. It was just yesterday when the President asked lawmakers to put goals of re-election aside when dealing with the debt crisis.

Democrats repeatedly said Saturday that they would not accept anything that does not guarantee a debt limit hike through 2012 — and an offer from Republicans fell short of that.

"Anything less than that will fail to provide the certainty that the markets — and the world — are looking for, risking an immediate downgrade of America's credit rating," said a "deeply disappointed" Senate Majority Leader Harry Reid in a statement late Saturday. "This would force a tax increase on all Americans and drain their savings funds and retirement plans as well."

Boehner's spokesman said last night what Boehner confirmed this morning:

Boehner spokesman Michael Steel said late Saturday that "a two-step process is inveitable" because Democrats have not accepted Republican proposals for reducing the deficit and have not offered any of their own.

The latest plan is expected to be posted on the Rules Committee website sometime Monday, with a vote on the legislation coming as early as Wednesday.