U.S. debt negotiations include talk of program cuts - Macleans.ca

U.S. debt negotiations include talk of program cuts

Government facing default if deal isn’t in place by Aug. 2


The GOP indicated its willingness on Thursday to work with the White House on striking a deal that would see Congress raise the debt ceiling in the U.S. President Barack Obama has been meeting with congressional leaders from both the Republican and Democratic parties in a bid to come to an agreement that would forestall a possible default by the federal government on some of its debt-related obligations. Sources say Obama is open to cutting as much as double the $2 trillion over 10 years that has been discussed at previous negotiations. House Speaker and Republican John A. Boehner met secretly with Obama last week to discuss spending cuts to social programs that were previously off the table, such as Medicare, Medicaid and Social Security. The spending cuts would be in exchange for $1 trillion in new revenues that would include an overhaul of tax laws. The U.S. could face its first-ever default if the government’s borrowing authority isn’t increased by Aug. 2.

New York Times

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