WASHINGTON (Reuters) - Republicans said on Tuesday they hoped to attach deficit-reduction measures to legislation raising the U.S. debt limit, but a new government report that forecast a more favorable budget outlook had the potential to undercut their efforts.
The call by House of Representatives Speaker John Boehner for deficit-reduction steps was an attempt to answer the concerns of the smaller-government Tea Party activists who populate his rank-and-file.
But a series of obstacles could thwart Boehner's plans. Democrats are promising to close ranks behind President Barack Obama, who has insisted on a "clean" debt limit hike that allows the federal government to continue paying its obligations.
And Boehner's own Republicans are divided over which deficit-reduction measure or measures to link to the debt hike legislation.