Obama still confident debt ceiling can be raised before U.S. default
The U.S. Senate is expected to vote down a Republican-backed plan to cut government spending, increase the country’s debt ceiling and implement a constitutional amendment for a balanced budget. The legislation has already passed the Republican-controlled House of Representatives, but the Democrats who hold sway in the Senate have called the plan “weak and senseless.” President Barack Obama has also promised to veto the legislation. American lawmakers have been arguing for weeks over how to raise the country’s $14.3 billion borrowing limit. Obama has agreed to cutting trillions of dollars in government spending over the next decade, but also wants to raise revenues to preserve public services. Republicans have rejected this approach, opposing anything they perceive as a tax increase. Despite the setbacks, White House spokesman Jay Carney says the Obama administration is “absolutely confident” the debt ceiling will be raised by August 2, when the government runs out of money to pay its debt obligations.