Repeatedly stalled budget talks have sent Democrats and Republicans scrambling on Wednesday, as a "Plan B" plan is developed to raise the country's debt ceiling before the
deadline next week.
President Barack Obama and Republican leaders have endured negotiations over a potential budget deal for months, with little success in finding common ground. Democrats have demanded spending cuts and tax increases on wealthy individuals and corporations, while Republicans have resisted any new taxes.
With a virtual deadlock, politicians must now move quickly to avert a U.S. technical default on its debt. The debt limit must be raised by August 2 to avert problems.
President Obama implored legislators on both sides of the aisle to avoid a "reckless and irresponsible" default in a nationally televised address Monday night.
"Defaulting on our obligations is a reckless and irresponsible outcome to this debate. .. We would risk sparking a deep economic crisis - one caused almost entirely by Washington," Obama said.
According to a Reuters report, "The White House said on Tuesday it was working with Congress to craft an unspecified "Plan B," providing a glimmer of hope that an 11th-hour deal could be reached as lawmakers feel the pressure from increasingly anxious financial markets."
The debt ceiling has been raised many times throughout the past few decades. Investors have largely remained calm this time around, as global equities have avoided volatility and substantial sell-offs.
A Reuters/Ipsos poll this week showed that 56% of Americans support a mixture of tax increases and spending cuts.
deadline next week.
President Barack Obama and Republican leaders have endured negotiations over a potential budget deal for months, with little success in finding common ground. Democrats have demanded spending cuts and tax increases on wealthy individuals and corporations, while Republicans have resisted any new taxes.
With a virtual deadlock, politicians must now move quickly to avert a U.S. technical default on its debt. The debt limit must be raised by August 2 to avert problems.
President Obama implored legislators on both sides of the aisle to avoid a "reckless and irresponsible" default in a nationally televised address Monday night.
"Defaulting on our obligations is a reckless and irresponsible outcome to this debate. .. We would risk sparking a deep economic crisis - one caused almost entirely by Washington," Obama said.
According to a Reuters report, "The White House said on Tuesday it was working with Congress to craft an unspecified "Plan B," providing a glimmer of hope that an 11th-hour deal could be reached as lawmakers feel the pressure from increasingly anxious financial markets."
The debt ceiling has been raised many times throughout the past few decades. Investors have largely remained calm this time around, as global equities have avoided volatility and substantial sell-offs.
A Reuters/Ipsos poll this week showed that 56% of Americans support a mixture of tax increases and spending cuts.
