By Erik Wasson - 07/29/11 05:38 PM EDT
The debt-ceiling plan authored by House Speaker John Boehner (R-Ohio) cuts the deficit by more than the plan by Senate Majority Leader Harry Reid (D-Nev.) if an assumption about war funding is removed from the Reid bill.
Without assuming a drawdown in military activities in Afghanistan and Iraq, the Reid bill only cuts the deficit by $909 billion. That's $8 billion less than the $917 billion Boehner plan. With the war funding factored in, the Reid plan cuts $2.176 trillion over 10 years.
A senior Democrat aide said that the new analysis, which was requested by the GOP, is "utter distortion" since it forces the CBO to use a different method than its standard.
The newly revised Boehner plan has the potential for even greater savings because it would require a balanced budget be enacted. Depending on how it is structured, a balanced budget could require many trillions of dollars in deficit cuts to achieve.
A Republican Study Committee budget would balance the budget in a decade by imposing $9.4 trillion in spending cuts without tax increases.
The Boehner plan is headed to a likely victory on the House floor Friday but is certain to die in the Senate. Reid said Friday he is open to changes to his plan as long as it increases the debt ceiling enough to not have to be raised again until 2013.
The Treasury Department said the government will default on its payments if lawmakers do not raise the borrowing limit by Tuesday.