Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Can Obama cut debt deal?

By ALISTER BULL
June 28, 2011

(AFP)

President Barack Obama is confident Democrats and Republicans can cut a “significant deal” to trim the U.S. deficit and increase its borrowing limit to avoid a damaging default, the White House said on Monday.

Despite the White House’s optimism, both Republicans and Democrats showed little willingness to compromise after deficit reduction talks led by Vice President Joe Biden collapsed suddenly on Thursday.

With polls showing Americans deeply worried about the sputtering economy, both sides are talking tough in an ideological battle over how best to cut a U.S. deficit that is projected to be $1.4 trillion this year.

Republicans say the solution lies in trillions of dollars in spending cuts, while Obama’s fellow Democrats say the deficit cannot be meaningfully reduced without increasing tax revenues, something their opponents reject.

Obama, under pressure to forge a budget deal that would pave the way for the $14.3 trillion U.S. debt ceiling to be raised by an August 2 deadline, met with Republican and Democratic Senate leaders to talk about the way forward.

“The president told me that everyone in the room believes a significant deal remains possible,” White House spokesman Jay Carney told reporters after Obama’s discussion with Democratic Senate leader Harry Reid.

Obama later sat down with Senate Republican leader Mitch McConnell but neither side would say how the talks went.

“The meeting concluded but they will continue to talk,” said McConnell spokesman Don Stewart.

The White House said Obama and Biden would both continue to engage congressional leaders. Carney declined to say when the next meeting would be held but said everyone understood they were facing a deadline to get a deal done.

McConnell has suggested that a short-term measure to raise the debt limit may be necessary, but other Republican leaders insist that a long-term deal needs to be struck.

‘SACRED COWS’

“Democrats and the administration have shown themselves willing to take on tough choices and it is important that Republicans are willing to do the same, take on some of their sacred cows,” Carney said.

Senator Jon Kyl, the No. 2 Republican in the Senate and a former member of the Biden group, told reporters that his party could live with some revenue boosting measures, but tax hikes were a non-starter.

“Revenues per se are not off the table. What we have said is we will not raise taxes, we will not alter the tax code by raising rates, that kind of thing,” he said, but declined to be more specific or spell out where fees could be raised.

Time is running out ahead of the August 2 deadline, when the U.S. Treasury says it will run out of money to pay the country’s bills.

Failure to act risks the United States defaulting on its financial obligations, which could push the country back into recession. Carney said that that was not going to happen.

“The president has said this is essential. Leaders of Congress have said this is essential. We must not default on our obligations. We remain confident that Congress will not let that happen,” he said.

McConnell has stuck firmly to his party’s line that revenue-raising measures were off the table.

“I intend to ask the president what he’s prepared to do, outside of raising taxes, about the massive deficits and debt that have accumulated on his watch,” he told the Senate.

Obama last week met with House of Representatives Speaker John Boehner, the top Republican in Congress. The House is not in session this week and many members, including Boehner, are back in their districts.

Carney said Obama and Biden would continue to talk to members of Congress to get the debt ceiling lifted but declined to give any specific dates for the next meeting.

(Additional reporting by Tabussum Zakaria, Laura MacInnis, Andy Sullivan and Caren Bohen; Editing by Vicki Allen, Ross Colvin and Cynthia Osterman)

 

Enhanced by Zemanta

10 Responses to Can Obama cut debt deal?

  1. b mcclellan

    June 28, 2011 at 8:23 pm

    So it is passed down to fair leader, Le FUBAR,
    blackjack, twenty one, keno, lottery, hedge fund, derivatives, municipal bonds, 401 K, pensions, FDIC, fiat currency, credit default, foreclosure at home, offshore tax base trickle dribble and the consensus is that this Lone Ranger will, or even has the power to seize
    the opportunity to sink the basket.
    Excuse me while I gird my lions with bear fat and whip my children for not chewing their daily quota of hides..Muckluck

  2. b mcclellan

    June 28, 2011 at 10:29 pm

    Essential is a big word.
    Do we need millionaires or essential contributors ?
    Pop was a quiet essential to our national health.
    When was the last imminent peril to your corn crop , Or brethren ?

  3. Carl Nemo

    June 28, 2011 at 10:41 pm

    What’s tragic is that America’s future is dependent upon a ‘debt deal’ being cut amongst a bunch of corrupt politicians, many if not most being lawyers too which gives it ‘value-added’. Ouch! : – &

    I’d say we’re in a heap o’ trouble…no?

    Carl Nemo **==

    • b mcclellan

      June 28, 2011 at 10:58 pm

      Murphy is gettin pissed,
      cause he’s out of control,
      suddenly besieged by nothin left to do..
      Aunt Martha is runnin out of firewood.

    • Almandine

      June 29, 2011 at 9:04 pm

      Dependent??? Hardly. But, we are in a heap o’ trouble.

    • Jeffrey King

      June 30, 2011 at 5:56 pm

      The world situation is tiring as it’s just about accounting and perhaps who can steal what and defend it. The argument that corporate taxes are the reason corporations go elsewhere is obviously flawed. People should read about how easy or hard it is to set up a business arrangement in other countries.

      The cause of all this turmoil is people without a country. The physical location is different from any national loyalty. Too many are enjoying the might and power WE pay for to threaten the less powerful to make a deal that benefits few.

      This is an interesting article and almost laughable considering the money numbers tossed around every day.

      http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/archive/2011/06/30/chavez-s-health-and-implications-for-chinese-investment.aspx

      Who’s on first?

      • Almandine

        June 30, 2011 at 6:54 pm

        You’re mostly correct, as corporate taxes are not as big a deal as are corporate expenses, which can be counted by the cost of materials and labor. Materials cost about the same the world over… (US) labor is the overriding concern.’

        Why is Buick the biggest seller in China? Certainly not because GM, America, is shipping them over there.

        Having said that, repatriation of profits without (or with minimal) taxation would level the field.would

        • Carl Nemo

          June 30, 2011 at 9:58 pm

          Here’s one that both you and Jeffrey King will ‘enjoy’ concerning corporate taxes etc. It’s titled “The Little House of Secrets on the Great Plains”. It surely was an eye opener for myself and no doubt will be for many other readers.

          http://news.yahoo.com/special-report-little-house-secrets-great-plains-113759191.html …courtesy of Yahoo News

          There’s no reason to offshore your business accounts when they can enjoy both the safety and the quasi to illegal perks by residing within a simple house in Mayberry, USA.

          Carl Nemo **==

          • Jeffrey King

            June 30, 2011 at 11:25 pm

            I saw that headline and brief blurb. I’ll take a pass again on reading the details. The endless pages of tax law are not by accident and if I was born today I doubt I could change the rules before my death at 150 years old.

            I would rather hope this game ends soon with some appropriate lynchings of figurehead pawns and money traders. Do you need a list?

            Stupid can’t be fixed. Meanwhile I’ll cheer for the Greecian peons with the courage to show up in protest. I’m not certain who is most angry, the excess of government workers now without jobs, or the people that can’t find a job and still get a bill to pay government workers.

            Isn’t that the problem here too? How many employers are dependent on grants and such to even exist in the “free market”? We’re screwed if we stop building war machines and accessories and equally screwed if nobody wakes up to the total lack of return on investment.

            We have jobs waiting just to repair and rebuild from natural/manmade disasters. Just need some fake money to make it reality. The lenders could care less about people. You think you’ll see any no interest loans headed that way?

            People aspire to be living on welfare, it’s so satisfying all the rich folk get a piece of the action too.

  4. Fivebyfives

    June 28, 2011 at 11:20 pm

    Geez, one of these days a democrat is going to be elected president, and then watch out! :)