Scott on national debt: 'There will be no default'

NORTH CHARLESTON, SC (WCSC) - There is still no deal to raise the nation's debt limit. Democrats and  Republicans are now working on their own last minute proposals after weekend talks broke down.

Monday morning, Congressman Tim Scott was in North Charleston to discuss the debt ceiling. Scott outlined what is at stake if Congress can't find common ground.

"We're fairly optimistic," Scott said. "We believe speaker Boehner and Sen. Harry Reid, who've been working over the weekend, have a plan in place that can pass both houses."

Republicans and Democrats only have eight days left to reach a deal to raise the nation's $14.3 trillion debt limit, or else. Administration officials say the government won't be able to pay all of its bills.

Democrats and republicans both want to come up with a solution to raise the nation's debt ceiling before the Aug. 2 deadline so the nation won't go into default.

"Lets' be clear on one part that is very important," Scott said. "There will be no default. There will be no default."

Republicans have come up with a two-step process that would raise the limit in two stages, and in return want $3 trillion in spending cuts over 10 years. Democrats say the two step process is a no go, and the president said he wants a deal that raises the limit through 2012, taking the debt limit out of politics until after the next election cycle

One thing both parties agree on is a set of spending cuts in the first phase of the GOP proposal about $1 trillion over 10 years, but it's the second phase, trying to find $2 trillion in savings.

President Barack Obama has canceled his appearance at two fundraising events Monday night in Washington because of the debt-ceiling dilemma.

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