McConnell's Plan B Gains Support from Both Parties

The backup debt plan pitched by Senate Minority Leader Mitch McConnell appears to be gaining some momentum, reports The Wall Street Journal.

While the White House has said both sides could agree to deficit cuts totalting about $1.5 trillion over the next 10 years, but no deal has been reached.

House Speaker John Boehner suggested the McConnell plan is on the table  Democratic leader Nancy Pelosi said she would consider it. Senate Majority Leader Harry Reid was in discussions with McConnell.

McConnell is offering a plant to split debt-ceiling increases into three sections between Aug. 2 and the end of 2012: the first a $700 billion boost, followed by two further $900 billion increases in later months, the Journal reports.

The increases would be structured so that Republicans and some Democrats facing reelection could vote against them, but the ceiling would still be permitted to increase. And McConnell is pushing for a balanced-budget amendment.

"He really gave us three bad choices: higher taxes, smoke and mirrors, or default," Mr. McConnell said in a Senate speech Thursday, and reported by the Journal. "We refused to accept any of them. Republicans will not be reduced to being the tax collectors for the Obama economy."

In addition to Pelosi, New York Democrat Charles Schumer gave support to McConnell's plan saying Democrats are looking for ways to amend it and offer additional savings.