Obama wants 4 trillion dollar deficit reduction deal,republicans want 2

Discussion in 'Politics' started by AK Forty Seven, Jul 10, 2011.

  1. Obama wants 4 trillion dollar deficit reduction deal,republicans want 2 trillion dollar deal


    Boehner says debt talks scaled back over tax rift

    WASHINGTON (Reuters) - A broad $4 trillion deal on U.S. deficit reduction appeared out of reach on Saturday as Republican leader John Boehner cited a rift with the White House on taxes and proposed pursuing a more modest package.

    "Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt-reduction agreement without tax hikes," Boehner, the speaker of the House of Representatives and the top Republican in Congress, said in a statement.

    "I believe the best approach may be to focus on producing a smaller measure."

    Boehner and President Barack Obama, who hoped to bolster his bid for re-election in 2012 with the achievement of a historic deficit-reduction package, spoke about the negotiations by phone on Saturday.

    On the eve of a meeting between Obama, Boehner and other congressional leaders at the White House on Sunday, staff for both Republicans and Democrats have been working through the weekend.

    Obama and Boehner had both set their sights on an ambitious $4 trillion plan, but Boehner's abandonment of the bigger goal means the negotiations will likely now focus on a package that would cut the deficit by more than $2 trillion over a decade.

    An aide to Obama said the president would not back off in his efforts to solve U.S. debt problems and will make the case to congressional leaders in talks on Sunday for taking on "this critical challenge."

    "We need a balanced approach that asks the very wealthiest and special interests to pay their fair share," White House Communications Director Dan Pfeiffer said in a statement.

    The White House needs to secure a deal on deficit reduction to clear the way for an increase in the $14.3 trillion debt ceiling before a deadline of August 2, when the Treasury has warned the United States faces risk of a default. The White House and private economists say a default could push the United States back into recession and trigger global financial chaos.


    Democrats want to shield popular domestic programs from huge cuts and say that any deal must include increases in tax revenue. Many Republicans have said they would not support a package that includes any tax increases.

    A $4 trillion deficit reduction plan would have involved reining in spending on the Social Security retirement program and Medicare, the government-run healthcare program for the elderly. Many in Obama's Democratic Party oppose such cuts.

    Aides to Obama and Boehner were discussing revenue increases that would have been achieved in part by a streamlining of the tax code. Democrats were seeking $1 trillion in additional revenue, an increase that many rank-and-file Republicans appeared loath to support.

    One Republican familiar with the deficit talks said taxes and cuts in benefit programs were both sticking points.

    "The White House would not agree with the core elements of tax reform proposed by the speaker," the Republican source said. "A gulf also remains between the speaker and the White House on the issue of medium- and long-term structural reforms."

    Leana Fallon, an aide to House Republican Leader Eric Cantor, said the tax increases Democrats wanted "cannot pass the House" and urged that the talks focus on a framework for between $2 and $2.5 trillion in cuts discussed in meetings led by Vice President Joseph Biden during May and June.

    Democratic Representative Chris Van Hollen blamed the abandonment of a bigger deficit-reduction goal on a "Republican fixation with protecting tax breaks for corporate special interests and the very wealthy."

    The Biden talks had identified savings of between $1.9 trillion and $2.7 billion. Republicans want an agreement for at least $2 trillion in cuts as the price for a debt limit increase that would be big enough to accommodate the nation's borrowing needs through the 2012 election.

    But even with a scaled-back goal, it might still be difficult to resolve the differences over taxes. At a minimum, Democrats want to close enough tax loopholes to bring in $400 billion in new revenue.

    Republicans want any elimination of tax breaks to be offset by cuts elsewhere.
  2. So Obama wants a deal to cut the deficit by twice the amount republicans do and was even willing to put SS and medicare on the table :cool:

    While its been clear to many that republicans dont give a shit about deficits and the national debt from the deficits and debt caused by Reagan and the Bush duo republican voters who care about the debt will continue to support these fools even after Obama was willing to cut a deal for twice the amount that republicans wanted
  3. Wallet


    Repub's would love to cut the deficit by 4 Trillion, but will not raise taxes in order to do so, which Democrats are unwilling to do. We don't have a revenue problem, we have a spending problem... the Democrats can't understand that, and want to just raise taxes placing an even larger burden on the real tax payers.

    Nice left spin you have.

    Entitlement spending has bankrupted this country, yet the current administration keeps throwing out the money. Take a good look at Greece, we are about 3-4 years away from seeing a repeat of that played out in our own streets, exception, it will be a thousand times worse.

    If we don't pull our heads out of our respective political asses, and start with a balanced budget - we won't be here, at least in our current state. WE DO NOT HAVE THE MONEY, to continue the current course of entitlement spending, increasing the burden of overspending on the taxpayers will only fuel this countries demise. Hard choices have to be made and they will hurt, unpopular but necessary..... if it's not already to late, which by some financial models suggest we have already slipped past the point of return.

    There is no more time, there is no more money..... the flames of our own Rome are already burning, while a metaphorical Nero, our own Elected Officials, dance to their own music of seeking reelection self-interest.
  4. We have a revenue and spending problem.We have the lowest tax rates in decades. Clinton era tax rates are are worth the price of deficit reduction if you really care about the issue

    we have a major defense spending problem but republicans(with the exception of Ron Paul) refuse to even talk about cutting defense and war spending

    I despise Obama for even putting SS and medicare on the table but am glad he has once again able to show that low taxes for the rich are the only thing republicans care about

    If republicans wont raise taxes and cut defense spending I say fuck it and let the debt reach 100 trillion
  5. Wallet


    Lowest Tax Rates? I agree, half of American homes pay no tax. Can't get any lower than that.

    SS and Medicare are bankrupt, why keep feeding a broke system?

    I agree Defense spending needs to be cut, best way is to bring our troops , and my son, home. But imho, as the reason we are over there is to keep the fight in their streets and not ours, so as a result we need to also CLOSE OUR BOARDERS which will help secure and protect our citizens and also help cut the deficit, which the Dem's are unwilling to do as it will cost them registered but illegal voters.

    It's nice you only focus on the leftie issues, your true colors are visible for all to see.
  6. Lucrum


    Bulls eye!
  7. Lucrum


    Another Bulls eye.

    My son too.
  8. On to 100 trillion..Lets all enjoy the ride

  9. Make them pay taxes,I'm not against that at all.How did it get to the point where some pay no taxes ? Was it the Bush or Reagan tax cuts ?
  10. Lucrum


    :confused: A little early to be drinking isn't it?
    #10     Jul 10, 2011