U.S. House of Representatives led faction of the Republic has approved the plan to cut more than 100 billion dollars from the federal budget next year, in exchange for raising the country's borrowing ceiling.
With the results of voting by party, so-called draft "Cut, Cap and Balance Act" was approved Tuesday night. The draft was about to cut federal spending outside defense, limiting future spending and the constitutional amendment requiring a balanced federal budget. Almost no members of the Democratic faction in the House to support it.
The draft is now submitted to the council-controlled Senate Democratic faction, in which the design was almost certainly not going to get away. President Barack Obama has also said he was going to veto.
United States is facing a deadline date of August 2 to raise the national debt ceiling, if not, America will fail to pay some debts. Talks between the President and the Republican faction leaders have been stalled because the issue of whether taxes should be raised to gain more revenue while cutting spending.
Obama said the effort now should be focused on the design proposed by a group of U.S. Senators from both parties, known as the "Group of Six." The design of spending cuts they meengharuskan 500 billion dollars immediately as part of a larger effort to cut spending $ 4 trillion in 10 years future.
The draft also requires significant changes to the major social welfare programs, like Medicare, and generate a trillion dollars of tax revenue in 10 years.
President Obama told reporters at the White House on Tuesday that the congressman "did not have time to play politics." He said failure to reach an agreement to raise the national debt ceiling will soon cause a bad reaction in the stock exchanges around the world.
U.S. House Approves Bill Cutting 100 Billion Dollar Budget
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