The U.S. White House on Monday endorsed a deficit reduction plan put forward by Senate Majority Leader Harry Reid (Democrat from Nevada ), saying it would remove the possibility of default from the U.S. economy through 2012. “Senator Reid's plan is a reasonable approach that should receive the support of both parties, and we hope the House [of Representatives] Republicans will agree to this plan,” White House spokesman Jay Carney said in a statement. The proposal would avert a debt-limit crisis by cutting $2.7 trillion of government spending, but the plan does not include any new tax revenue, as President Obama has demanded, although it would extend the debt ceiling into 2013. Carney said all the cuts proposed by Reid had already been agreed to by White House and Republican negotiators during talks led by Vice President Joe Biden.
