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The White House believes a deal on raising the debt limit must be reached by July 22 in order for the U.S. government to avoid defaulting on its obligations, The Wall Street Journal reports.Once an agreement is reached, Congress would have to draft and pass the legislation, and for the Treasury Department would need to implement it by the August 2 deadline — a process the White House says would take one week or more, the paper reported.
“We’re down to the wire,” one official told the WSJ.
But some Republican legislators do not share Obama’s urgency on reaching a deal — asserting the Treasury Department can make good on its bond obligations after that date.
The “administration insists on pretending that…as soon as the first employee is furloughed there will be a catastrophic collapse of the markets because the world will see the U.S. government in default,” Sen. Pat Toomey (R-PA) told the WSJ. “That’s ridiculous.”
Democrats and Republicans are looking to raise the debt limit by $2.3 trillion in order to avoid having to increase it again before next year’s election. Both sides are looking to cut the federal deficit by at least the amount of the increase, having already agreed to over $1 trillion in spending cuts.
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