Senate to table Boehner plan, negotiate a new bill

Washington – The House Speakers plan to raise the debt ceiling by almost $1 trillion and reduce the deficit by a similar amount while requiring both houses to send a balanced budget amendment to the states will come to a vote at 6:15 ET following remarks the Speaker.

House members voted to suspend the rules and allow a modified version of the plan to come to a vote. One may read it by clicking here.

When it is passed, the Senate will immediately table the legislation, and negotiations will begin between Majority Leader Harry Reid and Minority Leader Mitch McConnell. The negotiations are expected to last through the weekend to arrive at a version of Senator Reid's bill. A version of it may be read by clicking here.

Following a day of grueling debate that reveals a bipartisan split between the parties, Senator Kay Bailey Hutchison of Texas spoke for about 15 minutes against the Boehner debt reduction plan.

She gave the GOP's objections to the method of shoring up the nation's full faith and credit and avoiding a default on the national debt.

Primarily, the Republicans object to increasing the debt so soon on the heels of the passage of a costly health care plan, the National Health Care Reform Act of 2010.

“We have fundamental differences in the principles of how we should run our government,” Sen. Hutchison said. “I believe there is common ground between these plans. They are not the same plans.”

She endorsed the cut, cap and balance features of the Boehner proposal.

The Senator objected to the Reid plan because it will raise the debt ceiling $2.7 trillion to avoid a need to repeat the renegotiation of the national debt until after the Presidential elections of 2012. That's no good reason to raise the debt ceiling by a record amount, according to Sen. Hutchison.

Employers will not be able to add new jobs because they won't be able to predict the costs of doing business, primarily interest rates, said Sen. Hutchison.