UPDATE 1-US House Republicans challenge Senate Democrats

Thu Jul 28, 2011 2:17pm EDT

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WASHINGTON, July 28 (Reuters) - U.S. House of Representatives Republican leader Eric Cantor on Thursday challenged the Democratic-led Senate to accept a House-passed bill raising the debt limit or suffer the consequences of default.

Cantor issued the challenge at a news conference just hours before the Republican-controlled House was tentatively set to vote on a revised proposal to reduce deficits and raise the debt ceiling short-term. [ID:nN1E76R004]

Senate Majority Leader Harry Reid said Senate Democrats would reject the revised plan crafted by Republican House Speaker John Boehner.

"Harry Reid has three different options," Cantor said.

"One is to suffer the economic consequences of default, which all of us hope he doesn't choose. Two is to bring up the bill we sent prior ... or to accept the compromise bill that we are sending over today...," Cantor added.

A previous House-passed bill that called for cutting deficits by a steep $5.8 trillion over a decade, capping spending and passing a balanced-budget amendment was rejected by the Senate.

The latest House Republican bill would cut spending by $917 billion over ten years and raise the debt limit by $900 billion, which would force another decision on the debt next year ahead of the 2012 presidential and congressional elections.

The bill links further debt increases to Congress acting on additional budget savings developed by a special congressional panel. (Reporting by Donna Smith; Editing by Vicki Allen)

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Comments (5)
ivanbe wrote:
Shouldn’t Cantor be challenging House Republicans first? The bill hasn’t even gone to vote yet, and it doesn’t look as though Boehner and Cantor even have the votes in their own caucus. But I guess that wasn’t the story Reuters wanted to tell.

Jul 28, 2011 2:46pm EDT  --  Report as abuse
GMN445 wrote:
I seem to remember the same tactics being used in 1860-1861 by the future Confederate States of America. Once Lincoln was duly elected, they anticipated the end of slavery and decided to form their own government. Lincoln called their bluff and the result was a civil war which brought ruin to the country. This time the civil war is not between north and south, slaver holders and non-slave holders, but two distinct ideologies none the less. The conservative power block believes that unfettered capitalism is best for the country with government playing only the most minimal of roles. The liberals believe that government has a role to play in raising the lot of its citizens. The outcome of the first civil war was to decide that the union is more than a loose confederation of states. The next civil war will be fought to discern if more or less government is best. Like Lincoln, President Obama must not knuckle under to this blackmail. The American people will survive what comes and the country will be stronger for it.

Jul 28, 2011 2:56pm EDT  --  Report as abuse
JaredS wrote:
I believe both parties have some share of responsibility for this crisis. It’s funny, both accuse each other of not being bipartisan. In fact, it doesn’t seem that either side is that bipartisan. Boehner, Obama, Cantor, Pelosi, Reid. . . its time to get along!

Jul 28, 2011 3:13pm EDT  --  Report as abuse
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