The U.S. House passed a bill that was known as the "Cut, Cap and Balance Act" Tuesday night. The bill would increase the nation's borrowing by $2.4-trillion dollars, and require immediate spending cuts and a constitutional amendment requiring a balanced budget.
Newschannel Six asked Texas Congressman Mac Thornberry about the act today before the House vote that passed it about the problems that Democrats and Republicans along with the White House have been having coming to some sort of agreement.
"Well there's obviously politics every step of the way but I think it's very good that the House is actually going to vote on something." said Congressman Thornberry. "These closed door meetings down at the White House haven't really advanced at all very far so, and so to put something up on the table and say here's what we're for and what we're for in this case is to cut spending now, have a limit on spending in the future, and adopt a balanced budget amendment which more than 80% of the American people say they're for. I don't really understand why the President would resist a balanced budget amendment that most all of the states and most all of the households around the country have to live under."
The "Cut, Cap and Balance Act" has little chance of even getting through the Democratically controlled Senate. Even if it does the President has said he will veto it.
Now, attention is returning to efforts in the Senate to provide President Barack Obama authority to impose an increase in the debt limit without approval by Congress and on a new Senate "Gang of Six" proposal to cut the deficit by almost $4-trillion over the coming decade.
According to documents provided to senators, it would force up to $500 billion in cuts from federal health care programs over ten years. The growth of Social Security benefits would be curbed by moving to a lower inflation adjustment.
President Barack Obama is hailing it as balanced. But if the "Gang of Six" plan is going to be approved, Republican lawmakers may have to find a way to endorse more than $1 trillion in tax increases. The head of the House Ways and Means Committee, Dave Camp, says those tax hikes will be a big problem for his fellow
If the two sides do not come to an agreement by this Friday the August 2nd deadline will likely pass without action. August 2nd is when the nation could default on some of it's loans for the first time in the country's history.