Vice President Joe Biden's attempts to wring a compromise from Republicans to elevate the nations' debt ceiling have yielded $1 trillion in possible cuts, Biden told reporters.
Republicans have tied a vote to raise the debt limit to additional spending cuts. The debt cap must rise by an estimated $2 trillion to shield the nation from defaulting on its loans, and Republicans are seeking an equal level of spending cuts to balance out that figure. They have contested Biden and President Obama's call to create new source of revenue, which Republicans have equated with a tax hike.
I am confident that we can get to over $1 trillion in immediate cuts, said House Majority leader Rep. Eric Cantor (R-Va.). And I reiterated that tax increases cannot pass the House.
Treasury Secretary Timothy Geithner appeared to be optimistic in comments to reporters about the prospect of a deal, pointing to a fair amount of pragmatism. Whatever the shape of the deal is, he said that Congress has only one option regarding the debt ceiling.
Our plan is for Congress to pass the debt limit, he said. Our fall-back plan is for Congress to pass the debt limit and our fall-back-to-our-fall-back plan is for Congress to pass the debt limit.