WASHINGTON (TheStreet) -- The House of Representatives postponed late Thursday a vote on a budget proposed by House Speaker John Boehner (R., Ohio) to cut federal spending by nearly $1 trillion and lift the debt ceiling.

Senate Majority Leader Harry Reid (D., Nev.) said earlier in the day that if the measure made it to the Senate floor it would have been voted down. President Obama also threatened to veto the House bill.

"The votes obviously were not there," said Rep. David Dreier, R-Calif. on Thursday evening.

If the debt ceiling isn't lifted by Aug. 2, the country risks default on its obligations. Administration officials have warned that interest rates could rise, the job market could tighten and stocks could collapse.

Boehner's plan would raise immediately the $14.3 trillion debt ceiling by $900 billion. This would be accompanied by $917 billion in spending cuts. The debt ceiling would then rise $1.6 trillion next year dependent on further cuts.

Reid wants to raise the debt ceiling by at least $2.4 trillion, while cutting spending by $2.2 trillion over the next 10 years. The debt ceiling wouldn't have to be raised again until after the 2012 election.

"No Democrat will vote for a short-term Band-Aid that would put our economy at risk and put the nation back in this untenable situation a few short months from now," Reid said earlier Thursday.

House Republicans and Senate Democrats planned to meet Friday at 10 a.m. EDT to plan strategy, according to reports.

-- Written by Joseph Woelfel

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