The United States House of Representatives passed a measure to handle the U.S. Debt Crisis termed cut, cap and balance. The principles, as laid out in its name is too cut the deficit, put a cap, or limit, on the debt levels, and pass an amendment that requires all budgets to be balanced.
While gaining support by the Republicans, conservatives, fiscally responsible and Tea Party ideologues, Obama has already stated he will veto the bill if it passes the Senate. Obama and Democratic officials refuse to pass a measure unless it includes tax increases on the American public.
As the Cut, Cap and Balance Plan passed the House of Representatives, a Gang of six in the U.S. Senate also drafted a proposal to address the U.S. Debt Deal issue. Top Democratic officials have said that there will not be enough time to pass this measure before the Auguest 2nd deadline.
Despite running out of time, Obama has rejected Mitch McConnell’s plan as well, even though it raises the debt ceiling through 2012.
The Cut, Cap and Balance plan will likely not pass in the Senate as Democrats seek tax increases as part of the U.S. Debt Deal plan.