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1530342 tn?1405016490

Congressional leaders meet with Obama on debt ceiling

After putting controversial cuts to Social Security and Medicare on the table in negotiations with congressional Republicans over a plan to raise the nation's debt ceiling, President Obama still doesn't have a deal in the works.

Emerging from a meeting with congressional leaders on Thursday, Obama said that both sides in the negotiations would find the ultimate outcome "painful." He also explained that the two sides had not yet arrived at an accord, but would reconvene talks on Sunday.

"I want to emphasize that nothing is agreed to until everything is agreed to," Obama said, adding that the talks were conducted "in a spirit of compromise" but that the parties "are still far apart on a wide range of issues."

Both sides must come to a resolution to raise the $14.3 trillion limit by August 2, or the federal government could risk default, Treasury officials warn.

Obama has offered to reform the nation's entitlement programs in return for a deal that would increase government revenue by closing loopholes in the tax code.

House Republicans met behind closed doors on Capitol Hill earlier this morning to hash out their game plan for the meeting with Obama later today, and emerged to say that tax increases--of any kind--were "off the table."

"Everything's on the table except raising taxes on the American people," House Speaker John Boehner (R-OH) said shortly after the meeting. At this point, however, "there is no agreement," he added.

Cantor suggested Wednesday that Republicans could accept a deal to close tax loopholes if they are matched with tax reductions. Boehner said Thursday that comprehensive tax reform was a viable option in the talks with the White House.

"We believe that comprehensive tax reform, both on the corporate side and the personal side, will make America more competitive, help create jobs in our country, and is something that is under discussion," he said.

Meanwhile, coalitions within both parties are trying to keep their leaders from giving up too much in the talks. Democrats, especially the party's Progressive Caucus, are demanding that tax loopholes and certain credits for business be eliminated from the tax code, and want a tax increase on those earning more than $250,000. On Thursday, caucus leaders again voiced their opposition to any deal that touches Social Security or Medicare and sent a letter to the president urging him reject any Republican efforts to reform the programs.

"[A]ny cuts to Social Security, Medicare and Medicaid should be taken off the table," the letter read. "The individuals depending on these three programs deserve well-conceived improvements, not deep, ideologically driven cuts with harmful consequences."

The leaders of the caucus have requested a special meeting with Obama to air their concerns.

Liberal activists, too, have vowed to punish Democrats if they go along with a deal that cuts Social Security. The liberal group MoveOn.org unveiled a poll of its members this week that showed that 76 percent of them said they would be "less likely" to volunteer for the president in 2012 if cuts are made to Social Security.

For Republicans, the conservative wing of the party has put forth a plan to cut trillions from the federal budget on top of a promise of a constitutional amendment that forces the federal government to balance its budget every year. Republican leaders have not said whether a Balanced Budget Amendment is included in the talks with the president, but 28 GOP House members and 12 Senators have said they won't support a deal without the amendment.

Any final arrangement between congressional leaders and the president will require support from both parties to pass. But with liberals and conservatives pulling hard in both directions, any deal the leaders agree to could be a tough pill to swallow for both parties.
15 Responses
1530342 tn?1405016490
And it begins.....
1310633 tn?1430224091
I'm not sure how I feel about how B.O. is handling the Right.

He's not holding true to his party, and is leaning more and ore to the Center.

Could it be he reads this board, and has heard us talking about how In-Fighting and Bi-Partisan politics won't get us anywhere, and how the only way we're going to fix anything is if we work together???

Don't get me wrong, he's bending to the will of the Right, but I'm thinking he's got something up his sleeve. NOTHING in this world is free, and if he concedes this point (or several points) to the Right, then the Right is going to have to give up SOMETHING in return.
1530342 tn?1405016490
Oh they're going to give up something!!! We'll just have to wait and see!
1310633 tn?1430224091
Yeah, but WHAT?

If you know what's going on, or what he might have up his sleeve, please enlighten me, because I can't for the life of me figure it out.

Spill it...
306867 tn?1299249709
This is what I think is going to happen.  There will be no closing of tax loopholes, but if there is it will be given right back to them in tax cuts. There will be no cuts to Medicare or Social Security. Neither party will get what their after. This works for both because Republicans can come out and say they did not raise taxes and got 100% spending cuts, and the Democrats can come out and say they saved Medicare and Social Security.

Anyone want to place bets on this ? lol
1310633 tn?1430224091
So B.O.'s going to put them in a 'stalemate' type of situation?

No one wins, but no one looses???

I'll be EXTREMELY disappointed if that's all he's got up his sleeve. To go through so much effort, and turn against your own party (in essence), only to 'stalemate' everyone?

Seems like a lot of work for a little payoff.
1310633 tn?1430224091
And again, it's SELF-serving.

He makes himself look good to both parties, and WE loose out.
306867 tn?1299249709
Also.........I'm guessing Republicans were never really after cutting Medicare it was just a threat to get all the cuts they wanted.......because stopping all spending right now will tank the economy and guarantee Obama to lose the election.  Pretty sneaky huh.
306867 tn?1299249709
I'm not sure I understand,  aren't you for all the spending cuts ?  
306867 tn?1299249709
In my scenario above the Republicans win.  They get 100% spending cuts.  
1310633 tn?1430224091
I am FOR whatever is best for the country.

Spending cuts, no spending cuts.
Higher taxes, lower taxes.
Medicare, no Medicare.
Universal HealthCare, no Universal HealthCare.

I don't care, as long as it's done with the American PEOPLE in mind, and not simply re-election in 2012 and beyond.
1310633 tn?1430224091
If taxes are raised, and I can see that it's going into something worthwhile and not a bottomless pit of bureaucracy, I'd be behind it.

Until that time, don't touch my money.
377493 tn?1356502149
I just have to comment on one aspect of this whole issue that I don't think anyone would think of that lives in the US.  Whatever happens in this issue is going to have a dramatic impact on the world's economy.  If this debt ceiling is not raised and the US defaults not only are economists predicting that it is potentially disasterous for the US, but for much of the world.  I know my country will be hit hard as we are your neighbors and huge trading partners.  I kinda feel a bit resentful to be in a situation where my life and that of my countries is literally being held hostage by all this political posturing.  Once again, they are far to busy making sure the other party doesn't look good then they are coming up with a viable solution.  Being a superpower also brings with it great responsibility, and I wish these two parties would recognize that and conduct themselves accordingly.  This is a pretty serious issue for the US and the rest of the world.  
306867 tn?1299249709
You are absolutely correct and they (we) should be ashamed. The problem is..... the American people seemed to have lost their say in these things.  

Our Supreme court should also be ashamed for their decision on letting corporations count as a person. So now our votes go to the highest bidder.

(Mary walks off hanging her head in disgust)   :(
306455 tn?1288862071
Mary on Magi's computer.....

Just wanted to point out my post above on July 8th 9:56 am.  I was right lol   This is exactly what is going to happen.  No cuts to Medicaid or SS and no taxes either.  Darn, we have wasted all this time for nothing.  I had the answer all along.lol
(Mary walks off with her head held high)
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