With the August 2nd deadline looming over the heads of all the congressional leaders, President Obama announced a tentative compromise that will at least stave off the bankruptcy that America was headed for. The deal, which will take effect in two different steps, will boost the nation's debt ceiling to $14.3 trillion while also reducing government spending in the future. The first $1 trillion in spending will be cut in the next decade - the same amount that the debt ceiling will be raised (Jackson). .
Senators Harry Reid of Nevada and Mitch McConnell of Kentucky announced that a "framework" had been constructed. "We're moving forward together," the Senate's Democratic and Republican leaders said (Jackson). "I am relieved to say that leaders from both parties have come together for the sake of our economy to reach a historic, bipartisan compromise that ends this dangerous standoff," added Reid (Hulse). .
"We're not done yet," Obama cautioned, but he said the compromise would "end the crisis Washington imposed on the rest of America." Obama wanted to eliminate tax subsidies for corporations and raise tax rates for Americans who earn more than $200,000 a year. For the meantime, he plans on holding back on those highly controversial amendments and pushing for the future committee to address those changes (Jackson). .
Even House Speaker John Boehner, R-Ohio, who addressed America in a speech last week highlighting the drastic points of view between Boehner and Obama, supports the bill. "Now listen, this isn't the greatest deal in the world," he said. "But it shows how much we've changed the terms of the debate in this town" (Jackson). Boehner played a large part in selling the deal to other House Republicans who were initially wary of the deal. While many tend to vote with Boehner, the most conservative members are still holding out on their vote (Hulse). .
Although President Obama is already sighing with relief, the deal hasn't officially passed muster yet.