By Bernie Becker - 07/26/11 03:36 PM EDT
With the Aug. 2 debt-limit deadline just days away, both Boehner and Reid’s plans could get high-stakes votes this week.
Boehner’s latest proposal would pair a roughly $1 trillion increase in the limit with $1.2 trillion in spending cuts, as well as forming a commission to find more deficit reduction.
On the other side of the Capitol, Reid’s $2.7 trillion plan would allow for the debt ceiling to be raised through next year’s election — which Democrats say is necessary to comfort financial markets. Reduced interest payments and savings from troop drawdowns in Iraq and Afghanistan account for a sizable amount of the proposal's savings.
For its part, Heritage Action, in response to Boehner’s plan, said it saw no reason to believe yet another debt panel would succeed where others have hit the wall, and that it did not rein in deficits enough.
The conservative group called the Reid framework “equally unacceptable,” lumping it in with other “insufficiently bold ideas” like the Gang of Six plan that have come out of the Senate.