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4B Daily News – Wednesday, July 20, 2011 WORLD BRIEFING Senators push bipartisan deficit plan WASHINGTON (AP) — The bipartisan ‘‘Gang of Six’’ senators on Tuesday offered a major plan to cut the deficit by almost $4 trillion over the coming decade, but whether it can break through the budget debate will depend on whether Republican lawmakers can find a way to endorse more than $1 trillion in new tax rev- enues reaped as Congress over- hauls the loophole-choked U.S. tax code. The plan would also repeal a new long-term care program established under last year’s health overhaul and force an additional $500 billion in cuts from federal health care programs over the upcoming decade, according to documents provided to senators but not publicly released. The Gang of Six plan is sepa- rate from a politically freighted effort to lift the nation’s borrowing cap and avoid a first-ever default on U.S. obligations. President Barack Obama and Capitol Hill Republicans, however, have failed to reach an accord on what kind of spending cuts to pair with any increase in the borrowing cap. The six senators are Tom Coburn, R-Okla., Mike Crapo, R- Idaho, Saxby Chambliss, R-Ga., Kent Conrad, D-N.D., Mark Warner, D-Va., and Dick Durbin, D-Ill. President Barack Obama and a startling number of Republi- can senators lauded a biparti- san deficit reduction plan that includes $1 trillion in higher taxes, raising hopes Tuesday of a last-minute compromise to repair the nation’s finances while averting a historic gov- ernment default. Wall Street saluted as well Their plan calls for an immedi- ate $500 billion ‘‘down payment’’ on cutting the deficit as the starting point toward cuts of more than $4 trillion over the coming decade that would be finalized in a second piece of legislation. Most of those savings would come from four years of caps imposed on the day- to-day budgets of Cabinet agen- cies set by the annual appropria- tions bills. Obama, some GOP laud deficits plan WASHINGTON (AP) — Obama said he hoped con- gressional leaders would ‘‘start talking turkey’’ as soon as Wednesday along the lines of the Senate ‘‘Gang of Six’’ proposal, which quickly over- shadowed a no-tax-increase alternative that conservatives spent Tuesday pushing toward an evening vote in the House. At the White House, the president warned that finan- cial markets could soon begin to post worrisome losses unless gridlock is broken and the nation’s $14.3 trillion debt limit raised. But stocks soared for the day, propelled by the deficit plan’s emergence and Obama’s decision to seize on it as well as by strong earn- ings reports. The Dow Jones industrials rose 202 points, the biggest one-day leap this year. In the House, the focus was on spending cuts. ‘‘Our bloated and obese federal budget needs a healthy and balanced diet, one that trims the fat of overspending and grows the muscle of our nation’s economy,’’ said Rep. Reid Ribble of Wisconsin, one of the 87 first-term House Republicans determined to reduce the size of govern- ment. GOP freshmen face competing pressures WASHINGTON (AP) — House Republican freshmen are caught between rock-solid fiscal conservatism and a political hard place. The class of 2010 that lift- ed the GOP to its comfortable House majority pushed the leadership to a vote Tuesday on legislation that would slash spending by trillions of dollars and require a balanced budget constitutional amend- ment in exchange for an increase in the nation’s bor- rowing limit. It was a hard-won victory consistent with the campaign promises that helped get the 87 GOP members elected in November. But the measure’s chances are poor in the Senate, setting the stage for a backup plan from congressional leaders that would allow the govern- ment to avoid an unprece- dented default on Aug. 2. That would force freshmen to back an increase in the $14.3 trillion debt ceiling, and several constituents are telling them not to do it. 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