WASHINGTON (AP) -- The leader of the Democratic-controlled Senate
says any legislation increasing the government's ability to borrow
more money to meet its obligations should contain a cap on how big
the deficit can be in any given year.
Majority Leader Harry Reid said the mechanism would involve a new law binding Congress to reduce the deficit. Reid didn't give further details, but several proposals on Capitol Hill would require automatic spending cuts or tax increases if Congress can't meet spending or deficit targets.
Raising the so-called debt limit is by far the most pressing question facing Congress and President Barack Obama. The measure is
required to avoid a first-ever default on U.S. obligations that
would rattle financial markets. Republicans and Democrats both want
spending cuts added to the measure.
(Copyright 2011 by The Associated Press. All Rights Reserved.)