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The Republican-led U.S. House of Representatives votes Tuesday on
legislation that would cut billions of dollars from the federal budget in
exchange for raising the country's borrowing limit and avoiding a first-ever
default. The so-called Cut, Cap and Balance Act, supported by the Republican
Party's Tea Party faction and other fiscally conservative groups, would also
impose strict limits on future government spending, and require both the House
and Senate to approve a constitutional amendment requiring a balanced budget,
outlawing the government from spending more money than it takes in.
The bill has little chance of being approved by the Democratic-controlled
Senate, and the White House says President Barack Obama would veto it. The
administration says the bill would severely harm the government's ability to
help middle-class Americans and the elderly.Meanwhile, Democratic Senate
Majority Leader Harry Reid continues to hold talks with Republican Senate
Minority Leader Mitch McConnell on McConnell's proposal to give the president
sole authority to raise the debt limit by $2.5 trillion in three installments
over the next year. |
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