Conservative revolt casts doubt on House GOP plan

Conservative Republicans on Tuesday balked at House leaders' pleas to stop whining and back their plan to slash spending and increase the nation's borrowing ability, throwing into doubt the GOP's proposal to rescue the nation from an unprecedented government default.

House Speaker John Boehner, R-Ohio, is trying to round up the votes for his plan to cut spending about $1.2 billion and extend the debt ceiling for about six months, one of two rival plans amid the struggle between President Barack Obama and Congress to settle on an elusive compromise.

Washington and the nation are staring down an Aug. 2 deadline to raise the debt limit or face national default.

Flanked by conservative colleagues, Rep. Jim Jordan, R-Ohio, told reporters he could not back the Boehner proposal and said it doesn't have the votes to pass. In a two-step plan, Boehner is pressing for a vote on Wednesday and a second vote Thursday on a balanced-budget amendment to the Constitution.

"We think there are real problems with this plan," said Jordan, who heads the Republican Study Group. He argued that the spending cuts are insufficient and expressed opposition to likely tax increases.

"If I had to vote right now, my vote would be no," said Rep. Steve Southerland, R-Fla.

The conservative challenge came just hours after House Majority Leader Eric Cantor told rank and file to stop grumbling as he sought to rally lawmakers for the Boehner plan. In the closed-door session, the Virginia Republican acknowledged the resistance to increasing the nation's borrowing authority. "The debt limit vote sucks," he conceded to his caucus. But Cantor insisted that it must be done.

Cantor spelled out the options for the GOP — allowing default and stepping into an economic abyss, backing the Senate Democratic plan or calling Obama's bluff by backing the GOP's own proposal.

Neither of the rival plans offered by Boehner and Senate Majority Leader Harry Reid, D-Nev., seemed to have the necessary votes in Congress amid a bitter stalemate that could have far-reaching repercussions for the fragile U.S. economy as well as global markets. Stocks fell Tuesday as U.S. markets registered their nervousness over the Washington gridlock between President Barack Obama and Republicans.More.