[deandrecooke]

TPM: http://tpmdc.talkingpointsmemo.com/2...an.php?ref=fpb

President Obama heaped praise on a deficit-reduction proposal produced by bipartisan group of senators known as the "Gang of Six," calling it a "significant step" and arguing that members on both side of the aisle are beginning to coalesce around a balanced approach involving cuts to entitlements and tax increases.

...

Obama called on all Congressional leaders to support the proposal that includes both significant cuts and revenue raisers (i.e. tax increases and loophole closures.) He also said the plan proposed by Senate Minority Leader Mitch McConnell (R-KY) is necessary to consider but only as a backstop if agreement on a broader deal falls apart.

Leaders of the Gang of Six announced Tuesday that they're close to an agreement on a major deal to cut the deficit by more than $4 trillion over the next decade. The group of senators have been struggling to come up with a plan all of its members could agree upon, and progress was stymied recently when Sen. Tom Coburn (R-OK) left the negotiating table because of a general resistance to cut healthcare costs.

The group said Tuesday it had found some ways to cut healthcare that helped Coburn return to talks. The plan broadly mirrors a proposal put forth by the Debt Commission led by Erskine Bowles and Alan Simpson, which the President generally supports. It would call for immediate $500 billion "down payment" on cutting the deficit as the starting point toward the ultimate goal of finding more than $4 trillion over the next decade that would be finalized in a second piece of legislation.

The bipartisan deal would likely gain enough traction to get through the Senate, but Speaker John Boehner (R-OH) and House Majority Leader Eric Cantor (R-VA) have rejected any willingness to compromise on a deal that includes net tax increases.

[Romarionsion]

A bit of political theatre played out this afternoon, as Republicans in the house went through the motions of passing an austerity bill that won't pass the Senate and would never be signed into law.

With that out of the way, work on the compromise proposal will ideally begin quickly.

TPM: http://tpmdc.talkingpointsmemo.com/2...it.php?ref=fpa

In a heavily partisan vote Tuesday, the House of Representatives passed the Cut, Cap, and Balance Act -- a palatable-sounding piece of legislation that, if enacted, would slash federal programs deeply, and restrict dramatically the government's ability to do anything constructive for the country.

It also would graft those requirements into the Constitution, on the threat of a catastrophic debt default. Now leaders of both parties will have to scramble to make sure that doesn't happen.

...

The good news is that the legislation will now die a quiet death in the Senate. The better news is that, when the ballet is finally over, the House and Senate will finally figure out how exactly they'll raise the statutory debt limit.

The bad news is that time is running out. August 2 is the drop dead date before the country defaults on its debt, and still neither of the viable options on the table -- the grand bargain, the backup plan, or anything in between -- can pass in the House, where the agenda is currently driven by hot-tempered conservatives.

But the idea behind Tuesday's vote is to placate those conservatives, and give Republicans who know the debt ceiling must be raised cover to vote for a compromise in the days ahead. If it succeeds at that, then maybe the price of posturing will have been worth it.