House Speaker John Boehner’s two- phase debt-ceiling proposal may force a replay of the current fight early next year if Congress doesn’t slash at least $1.6 trillion from the deficit by late December, according to a person familiar with the plan.
Under the proposal, the person said, a joint House-Senate committee would have to report by Nov. 23 on a deficit-cutting package and Congress would have to enact it by Dec. 23 for President Barack Obama to receive additional borrowing authority. The person requested anonymity to discuss the plan before it was formally released.
Republican aides say the measure would immediately raise the debt ceiling by roughly $1 trillion while cutting slightly more in federal spending. It would force additional cuts before making a second borrowing boost available.
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