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| Democrats reject proposed US House fiscal plan | |
| (35 minutes later) | |
| US Democrats have rejected a proposal from House of Representatives Republicans to extend the debt limit and reopen the federal government. | |
| The White House criticised what it called an attempt to appease a small group of conservatives, but praised a parallel bipartisan Senate plan. | The White House criticised what it called an attempt to appease a small group of conservatives, but praised a parallel bipartisan Senate plan. |
| The White House objected to the House's proposed alterations to President Barack Obama's "Obamacare" health law. | The White House objected to the House's proposed alterations to President Barack Obama's "Obamacare" health law. |
| The US must raise its $16.7tn (£10.5tn) debt limit by Thursday or risk default. | The US must raise its $16.7tn (£10.5tn) debt limit by Thursday or risk default. |
| Parallel proposals | Parallel proposals |
| It remains unclear whether Congress can agree a deal in time to avert widely feared economic calamity in the US and across the world. | |
| Both the Senate plan, outlined on Monday evening, and the House Republicans' plan, revealed on Tuesday, would fund the government through mid-January and raise the debt ceiling until February, creating room for negotiators to agree a longer-term budget. | Both the Senate plan, outlined on Monday evening, and the House Republicans' plan, revealed on Tuesday, would fund the government through mid-January and raise the debt ceiling until February, creating room for negotiators to agree a longer-term budget. |
| The Senate proposal would delay for two years a per-employee tax paid by companies and labour unions on workers' healthcare plans. | The Senate proposal would delay for two years a per-employee tax paid by companies and labour unions on workers' healthcare plans. |
| The House plan, meanwhile, would delay a medical device tax used to pay for healthcare subsidies under the law and eliminate healthcare subsidies for the president, vice-president, members of the president's cabinet, and members of Congress. | The House plan, meanwhile, would delay a medical device tax used to pay for healthcare subsidies under the law and eliminate healthcare subsidies for the president, vice-president, members of the president's cabinet, and members of Congress. |
| Both proposals would include income verification requirements for Americans seeking public subsidies to purchase health insurance. | Both proposals would include income verification requirements for Americans seeking public subsidies to purchase health insurance. |
| The health law passed in 2010, was subsequently validated by the Supreme Court, and was a central issue in the 2012 presidential election, which Mr Obama won handily. Many key provisions have already taken effect, and more begin next year. | The health law passed in 2010, was subsequently validated by the Supreme Court, and was a central issue in the 2012 presidential election, which Mr Obama won handily. Many key provisions have already taken effect, and more begin next year. |
| On Tuesday, Mr Obama rejected what an aide described as Republicans' attempt to extort "ransom" while the government remained shut and the threat of a debt default loomed. | On Tuesday, Mr Obama rejected what an aide described as Republicans' attempt to extort "ransom" while the government remained shut and the threat of a debt default loomed. |
| Call for 'fairness' | Call for 'fairness' |
| "Unfortunately, the latest proposal from House Republicans does just that in a partisan attempt to appease a small group of Tea Party Republicans who forced the government shutdown in the first place," said White House spokeswoman Amy Brundage, referring to a faction of hardline conservatives who hold significant sway in the House. | "Unfortunately, the latest proposal from House Republicans does just that in a partisan attempt to appease a small group of Tea Party Republicans who forced the government shutdown in the first place," said White House spokeswoman Amy Brundage, referring to a faction of hardline conservatives who hold significant sway in the House. |
| "Democrats and Republicans in the Senate have been working in a bipartisan, good-faith effort to end the manufactured crises that have already harmed American families and business owners. With only a couple days remaining until the United States exhausts its borrowing authority, it's time for the House to do the same." | "Democrats and Republicans in the Senate have been working in a bipartisan, good-faith effort to end the manufactured crises that have already harmed American families and business owners. With only a couple days remaining until the United States exhausts its borrowing authority, it's time for the House to do the same." |
| Later, Republican House Speaker John Boehner said that both parties were trying to find a way forward and that the House plan was focused on "fairness for the American people under Obamacare". | Later, Republican House Speaker John Boehner said that both parties were trying to find a way forward and that the House plan was focused on "fairness for the American people under Obamacare". |
| "There have been no decisions about exactly what we will do," he told reporters on Tuesday. "There are a lot of opinions about what direction to go." | "There have been no decisions about exactly what we will do," he told reporters on Tuesday. "There are a lot of opinions about what direction to go." |
| House and Senate Democrats immediately joined Mr Obama is denouncing the House Republican plan. | House and Senate Democrats immediately joined Mr Obama is denouncing the House Republican plan. |
| Senate Majority Leader Harry Reid said the plan was "an extreme piece of legislation and it's nothing more than a blatant attack on bipartisanship." He said it would never pass the Democratic-controlled Senate. | Senate Majority Leader Harry Reid said the plan was "an extreme piece of legislation and it's nothing more than a blatant attack on bipartisanship." He said it would never pass the Democratic-controlled Senate. |
| Democratic House Minority Leader Nancy Pelosi, meanwhile, suggested Mr Boehner's plan failed even to attract sufficient votes from his fellow Republicans to pass. | Democratic House Minority Leader Nancy Pelosi, meanwhile, suggested Mr Boehner's plan failed even to attract sufficient votes from his fellow Republicans to pass. |
| She said the "great progress" made on the proposed Senate bill "struck fear in the hearts of House Republicans" and led them to "sabotage the bipartisan effort" in the Senate. | She said the "great progress" made on the proposed Senate bill "struck fear in the hearts of House Republicans" and led them to "sabotage the bipartisan effort" in the Senate. |
| Mr Obama is scheduled to meet House Democrats on Tuesday afternoon as Thursday's debt ceiling deadline inches ever closer. | Mr Obama is scheduled to meet House Democrats on Tuesday afternoon as Thursday's debt ceiling deadline inches ever closer. |
| 'Surrender caucus' | 'Surrender caucus' |
| Even if a deal is reached in the Senate, it is unclear whether Congress could act in time to pass legislation that would avert the 17 October default deadline. | Even if a deal is reached in the Senate, it is unclear whether Congress could act in time to pass legislation that would avert the 17 October default deadline. |
| Hardline conservatives such as Texas Republican Ted Cruz could use Senate rules to stonewall a vote. | Hardline conservatives such as Texas Republican Ted Cruz could use Senate rules to stonewall a vote. |
| In the House of Representatives, the Senate deal could meet fierce resistance from the Tea Party-aligned Republicans. | In the House of Representatives, the Senate deal could meet fierce resistance from the Tea Party-aligned Republicans. |
| One of those conservative hardliners, Kansas Representative Tim Huelskamp, was quoted by the New York Times as labelling his upper chamber colleagues "the Senate surrender caucus". | One of those conservative hardliners, Kansas Representative Tim Huelskamp, was quoted by the New York Times as labelling his upper chamber colleagues "the Senate surrender caucus". |
| "Anybody who would vote for that [Senate deal] in the House as Republican would virtually guarantee a primary challenger," he said. | "Anybody who would vote for that [Senate deal] in the House as Republican would virtually guarantee a primary challenger," he said. |
| Republicans have taken the brunt of blame for the latest fiscal cliffhanger to cripple Capitol Hill, according to opinion polls. | Republicans have taken the brunt of blame for the latest fiscal cliffhanger to cripple Capitol Hill, according to opinion polls. |
| A Washington Post/ABC News survey on Monday found 74% of voters were unhappy with congressional Republicans' handling of the standoff, compared with a 53% disapproval rating for President Obama. | A Washington Post/ABC News survey on Monday found 74% of voters were unhappy with congressional Republicans' handling of the standoff, compared with a 53% disapproval rating for President Obama. |
| Some in the party have voiced concern that the affair could damage its prospects in next year's midterm elections. | Some in the party have voiced concern that the affair could damage its prospects in next year's midterm elections. |
| Economists and bankers have warned for weeks of dire consequences should Congress fail to reach an agreement on raising the nation's debt ceiling. | Economists and bankers have warned for weeks of dire consequences should Congress fail to reach an agreement on raising the nation's debt ceiling. |
| The US Treasury has been using what are known as "extraordinary measures" to pay its bills since the nation reached its current debt limit in May. | The US Treasury has been using what are known as "extraordinary measures" to pay its bills since the nation reached its current debt limit in May. |
| Those methods will be exhausted by 17 October, US Treasury Secretary Jack Lew has said. | Those methods will be exhausted by 17 October, US Treasury Secretary Jack Lew has said. |
| Meanwhile, the government remains partially shut down because Congress failed to agree on funding by a 1 October deadline. | Meanwhile, the government remains partially shut down because Congress failed to agree on funding by a 1 October deadline. |
| The impasse has closed a swathe of federal services and left hundreds of thousands of employees out of work. | The impasse has closed a swathe of federal services and left hundreds of thousands of employees out of work. |