Debt ceiling deal clears House; Senate next

The House on Monday voted to approve a deal to raise the debt limit, voting 269-161 for a bill that would cut government spending by trillions and effectively raise the debt ceiling through the end of 2012.

The bill, which was brokered Sunday night in last-minute negotiations between the White House and congressional leaders, passed with the support of 174 Republicans and 95 Democrats.

Among those who supported the bill was Rep. Gabrielle Giffords, D-Ariz., who returned to Washington for the vote. This was Giffords' first vote in Congress since the January 8th shooting in Tucson, Arizona, in which she was seriously wounded.

Gabrielle Giffords votes for debt limit deal
CBSNews.com special report: America's debt battle

Lawmakers offered Giffords a standing ovation on the House floor when she showed up for the vote. After it was completed, House Democratic Leader Nancy Pelosi said Giffords' name inspires the love and admiration of Americans and called the lawmaker the "personification of courage."

"Thank you, Gabby," Pelosi added. Giffords, her hair short, waved and thanked members as they applauded the sentiment.

Giffords said in a statement that she "closely followed the debate over our debt ceiling and have been deeply disappointed at what's going on in Washington."

Before the vote, House Minority Leader Nancy Pelosi said "it's hard to believe we are putting our best foot forward with the legislation that comes before us today."

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A number of Tea Party-linked Republicans voted against the legislation because they felt it failed to go far enough, while some progressive Democrats voted against it because they said the plan was tilted toward GOP interests. But a majority of lawmakers overcame their misgivings about the measure to pass it ahead of tomorrow's deadline to increase the nation's $14.3 trillion debt limit or face economic catastrophe.

Some House Democrats also delayed their votes until it was clear how many Republicans would vote for the plan.

But, she noted, "I'm proud of some of the accomplishments contained with it and that's why I'm voting for it."

The plan will cut nearly $1 trillion in government spending over the next 10 years and raise the amount of money the U.S. is legally allowed to borrow by enough to avoid another showdown on the matter before next year's presidential election.

It will also create a special congressional committee of a dozen members -- three from each party from the House and the Senate - that would be tasked with coming up with recommendations for $1.5 trillion in further deficit reductions by Thanksgiving. Those reductions could include cuts from defense and social safety net programs, as well as changes to the tax code. If the recommendations are not created or approved by Congress by the end of the year, there will be more than $1 trillion automatic spending cuts unless a balanced budget amendment to the Constitution is sent to the states.

In remarks on the House floor prior to the Monday evening vote, Minority Whip Rep. Steny Hoyer, D-Md., who voted for the bill, accused the Tea Party of taking the American economy "hostage" and expressed his hope that the bipartisan congressional committee determining the second round of cuts would consider the "priorities of this nation."

"For the first time in American history the radical right has held the economy hostage," he said. "Hopefully the [super congressional] committee will accurately reflect the priorities of this nation."

Rep. Steve Cohen, D-Tenn., called the bill a "Trojan horse" and said he could not vote for legislation that included a "series of cuts we don't know."

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"The first series of cuts we know, the second series of cuts we don't know," he said in a speech on the House floor. "I fear it's a Trojan horse...That's an Odysseyan journey that this country should not have to traverse."

CBS News' John Nolen reports that the Senate will vote on the debt plan at noon on Tuesday. The bill is expected to pass the Senate and be signed into law by the president soon afterward.

From CBS Moneywatch.com:

Carla Fried: Debt deal winners and losers
Alain Sherter: why the debt ceiling pact is bad economics
Conrad de Aenlle: Debt deal won't fix entitlement spending problem

9 Photos

Facts about the debt

[Truth_Tracker]

The Super Wealthy got everything they wanted, no questions asked, with the "TARP-Banks-Wall Street-Auto Industry" bailouts. The Super Wealthy got a humongous Welfare Check last December when the Bush Tax Breaks for the Super Wealthy was renewed. And NOW, we are told, they are getting everything they wanted yet again, namely, a complete exemption from having to share in the onerous burden of reducing the deficit, because there's no potential here for a roll-back of their Bush Tax Breaks (Welfare Benefits) for the wealthy.

The U.S. media refuses to even deem this to be significant, probably because THEY benefit tremendously from those "Welfare for the Wealthy" hand-outs and they surreptitiously silence the issue by shifting focus to the "Default Crisis" - with the curt remark "something for everyone to hate," and with the errant national anthem "pass anything - anything is better than default." Well there's nothing in this plan for the Super Wealthy to "hate." The super wealthy are the only ones being rigorously represented in Congress, in the White House or in the media.

[krisd999-2009]

Good job, keep borrowing until every cent we pay in taxes goes to interest to China. Typycal, cause a problem, then look like heroes for having an even worse solution.

[realist2010]

I'll buy in as long as you admit your first plan was the birther movement.

[slappy_mcjohnson]

by dan1511 August 2, 2011 12:23 AM EDT
Ok. let us move ALL corporations overseas....Not what would you do? No jobs ,no tax revenue..we can make it happen!!

----------

Why would you want to do that?

We should penalize US corporations which ship American jobs overseas.

.

[bajajohn1]

Try not to engage Dan, he is but an afert-hought. Our nation is more important than a loon from the extreme right wing who loves money more than my nation. As an older man, I will fight for my nation.

[mr_kommedal]

I would like to see him move to Burma.

He would fit in there too.

[bajajohn1]

The King said, Without justice and without lands the nation will fail. In modern times. our county has now been bought and sold, the founders believed n the greatest of the philosphy of the Greeks and Romans, but because of money, we have lost our way.

[slappy_mcjohnson]

by dan1511 August 1, 2011 11:44 PM EDT
Waht is wrong with keeping your own money...the feds waste it!

========

dan1511 is delusional.

He is against tax credits for individuals, yet is FOR tax credits for corporations.

Dan - what makes you think any of MY tax dollars should be spent for welfare for the company which employs YOU???

Truly, I don't give a crap about your corporation, in the same way you don't give a crap about the previous poster's family.

If you aren't enterprising enough to get out there and employ yourself at any point in your life, it might be time to get off your lazy ass and try it for once.


.

[nearl451]

Yep. He needs professional help.

[mr_kommedal]

@dan
Ok. let us move ALL corporations overseas....Not what would you do? No jobs ,no tax revenue..we can make it happen!!

Then we will get in FOREIGN companies from Asia and Europe.

You know; the ones that has been buying American car manufactures.
They seem to know how to make business AND treat their workforce a LOT better than people with your attitude.

You REALLY look like a piece of bad news from what you are posting.
Certainly highly anti AMERICAN !
That kind of attitude is not wanted ANYWHERE !

[bajajohn1]

As an older Vietnam Veteran, I love the engagement with those who do not care care for the sick old ladies and men, the mentally ill, the disabled and the middle-class who struggles to breathe freedom's air. We number in the hundreds of millions.

[bajajohn1]

But not with at our expense and not with you paying bribes to Republicans and Teabugs.

[slappy_mcjohnson]

Watch the first 10 minutes of the Daily Show at midnight, or noon tomorrow on Comedy Central.

Amazing nail on Obama - a reporter had foreseen this EXACT scenario during an Obama press meeting on Dec 7, 2010.

It will hurt ANY citizen to watch.


.

[nearl451]

There's no us, Dan. As you showed last night, you are delusional. All your VFW buddies are not even on the same page. Haven't you been reading the diversity among veterans here?

[bajajohn1]

If this is disturbing, wait until the American people rise. You know, thanks to the NRA, they all have guns. You so-called rich keeping screwing with American, American will fight you with whatever means. It is called justice.

[bajajohn1]

Everyone knows now who their political enemy is. Class warfare? You bet, let us get it on!

[bajajohn1]

No I don't think so. Chinese said, gunpowder is the greatest equalizer. There are more poor people than rich.

[mr_kommedal]

@dan1511
And a number of the poor ones has been soldiers.
They would know how to get hold of what they need.

The obstacle is China that will not lend the money to destroy their most important milking cow.

[nearl451]

Trojan horse my eye.

The only good thing about the bill is that it raises the debt ceiling. The remainder is so milquetoast in the short term AND again allows Congress to SHIRK their repsonsibility after the UBERcommission completes its work. All they have to do is nothing and automatic cuts happen.

Well, we employ these bozos to MAKE DECISIONS; not let the system heal itself. If the system can run itself we don't need a Congress at all.

I would go so far to say that automated govt decisions violate the Constitution,because they CANNOT react to or act reasonably in any crisis. When the economy now tanks, you will see how shortsighted this nonsense is.

Mort, show me the articel where the Constitution allows Congress to shirk its responsibilities outlined under Article 8.

There are no salient decisions made here until (kick the F'n can) the next Congress need make it. All the short term cuts are milquetoast( !!) so as to not affect the next election.

[jschmidt27]

This budget is 6% lower than the last. Not a big deal but the Democrats made it feel as if the world was ending. They didn't want to cut and don't know how.

[bajajohn1]

the Uber Commission is a sham. It is disgraceful, as the Bonehead appointees, will NOT negotiate in good faith. This is a despicable committee that is being formed. The only way to get a balance is to vote out the i.d.iots that will sit on it this sham.