Boehner's "two-step" deficit solution memo

WASHINGTON–With the Aug. 2 default deadline looming, the stalemate continues on Monday. House and Senate GOP and Democratic leaders are floating plans. In the end, both chambers have to forge a deal to raise the debt ceiling.

House Speaker John Boehner (R-Ohio) press secretary Brendan Buck’s memo on Boehner’s latest proposal, out today, a “two-step” solution, with a few jabs at President Obama.

From the Buck memo:

“As you now know, the Speaker will be discussing a plan forward on the debt limit with his members at 2:00 today. Some details are being finalized, but despite what you may have read on a blog, the plan will not be a “short-term” one. Instead, the bipartisan, bicameral leaders worked all weekend on a two-step plan that will raise the debt limit and ensure accountability by requiring spending cuts before the President gets an increase in borrowing authority.

“This work will be the basis of the plan the Speaker presents today. It’s well understood that the President would not like to deal with a deficit reduction package in the election year. Frankly, we too wish everything could be done by August 2nd.

“But, since Democrats offered no plan of their own and the President waited so long to engage, a two-step process is inevitable at this point. (You will recall the framework being discussed by the President and the Speaker was also a two-step process). I should also note that despite protests from the White House, the first debt limit increase in the plan, as much as $1 trillion, may end up being the second biggest increase in history. What’s more, Congress has increased the debt limit 44 times – yes, 44 – for a period of time SHORTER than what we are proposing in step one. This two-step plan offers the President a reasonable path to increase the debt limit beyond 2012. It simply requires accountability along the way to ensure the American people get their deficit reduction when the President gets his new borrowing authority.”