About a week after President Barack Obama vowed to veto any short-term solution to the debt ceiling issue, the Commander in Chief appears to have flip-flopped on his stance.
The White House recently said that it might support a plan that would raise the debt ceiling for a few days in order to allow a larger deal to be completed, reports The Washington Times. Obama had warned House Majority Leader Eric Cantor (R-Va.) not to call his bluff on his veto promise.
“If both sides agree to something significant, we will support the measures needed to finalize details,” White House spokesman Jay Carney said. “We believe a short-term extension absent an agreement to a larger deal is unacceptable.”
Treasury Secretary Timothy Geithner has said that if the debt ceiling is not raised by Aug. 2, America would begin defaulting on its obligations. Republicans have said that they would allow the ceiling to be raised only if equal future spending cuts were promised. In addition, they have refused to allow tax hikes to be included in the debate.
Earlier this week, the House passed the GOP’s “cut, cap and balance” plan, which allows the debt ceiling to be raised in exchange for a balanced budget amendment to the Constitution.