In the short term, his plan allows the president to request a $2.5 trillion hike in the debt limit in three stages, each requiring a list of spending cuts at least as high as the requested increase in the debt limit. In the short term, that means that the debt limit would be raised $100 billion the day the president makes his request.
Senate majority leader Harry Reid (D) of Nevada is working with Senator McConnell to enhance the plan to make it more acceptable to Democrats, including $1.5 trillion in spending cuts and a bipartisan, bicameral panel to propose tax and entitlement reforms to further reduce deficits.
The increase in the debt limit automatically becomes law in 15 days, unless Congress passes a resolution of disapproval. On Tuesday, Senator Reid gave the Gang of Six 24 hours to come up with proposals from their plan to add to this measure.
On Wednesday, however, Carney said the president would veto the McConnell plan, at least as initially proposed.
“The president will not sign just a temporary measure that requires a repetitive process where we cast doubt on the capacity of Washington to deal with raising its debt ceiling, cast doubt on whether or not it’s going to honor its obligations in a repetitive way,” Carney said.