Debt limit: Obama stands alone as Reid crafts cuts-only plan

There are a lot of reports out there about what’s happening with the debt-ceiling negotiations:

  • This report, if true –that Speaker John Boehner, Senate Minority Leader Mitch McConnell and Senate Majority Leader Harry Reid agreed to a two-stage plan which Reid took to the White House, only to have President Obama reject it — reflects poorly on Obama.
  • Reid is now working on his own plan to raise the debt ceiling by $2.7 trillion (has anyone else noticed the figure has gone from $2 trillion to $2.4 trillion to now $2.7 trillion?) and cut spending by a commensurate amount, with no tax increases.
  • It seems the chief result of the “Gang of Six” plan, so far, is to embolden Obama to increase by half what he wants in higher taxes.

It appears Obama is now the lone holdout at this point on two key elements of a deal: whether taxes have to rise, and whether a two-step process is acceptable.

Reid, by deciding to work on an all-spending-cuts-no-tax-hikes plan, is essentially — ahem — calling the president’s bluff. Two and a half months ago, when Boehner first stated his position that any debt-ceiling increase had to be matched dollar-for-dollar by spending cuts (albeit on a much longer time frame than the new borrowing authority), the idea was considered radical. But it’s become the basis for negotiations: Even Obama’s rhetorical “plan” to cut deficits by $4 trillion started with dollar-for-dollar cuts and tacked tax increases on top of it.

With Reid’s move, the only questions now are whether the cuts will be real, and whether Obama will swallow his pride (after warning Congress not to call his bluff) and sign such a package.

And if the House GOP will only agree to a short-term deal to get the government past its Aug. 2 deadline, followed by a longer-term arrangement? The president may have to swallow his pride again.

– By Kyle Wingfield

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226 comments Add your comment

Yahtzee

July 25th, 2011
11:45 am

Any deal that “promises” cuts down the road just to raise the debt ceiling is a joke. Any deal that only cuts 1-2.7 trillion over the next decade is a joke, we are slated to spend (deficit spending) 1.6 trillion this year alone.

I honestly believe that Obama doesn’t want to deal, and he wants a “default.” He obviously has not intentions of cutting back any spending, and only wants to point the finger towards the right.

steve tolbert

July 25th, 2011
11:55 am

Enter your comments here

steve tolbert

July 25th, 2011
11:57 am

Yahtzee,your a blind man.Obama has bent over backwards to make a deal. if not for the tea party there would be a deal.

Dan

July 25th, 2011
12:00 pm

Obama has bent over backwards? Maybe to smooch his own butt, he certainly hasn’t moved an inch from his far left post to do it

jconservative

July 25th, 2011
12:01 pm

The Founding Fathers designed the system in the Constitution that required the Congress to agree on spending and tax plans before being presented to the President.

I trust the latest news will result in exactly that happening.

Then the President can do his Constitutional duty of approving, vetoing or ignoring the passed legislation.

Just the way the system is designed.

The demand from both sides of Congress that the President be involved from day one just shows the lack of courage on the part of members of Congress.

And the American people actually elected all 535 of them.

Obama is a LIAR and a FRAUD

July 25th, 2011
12:05 pm

Yessir, Obama is the biggest FRAUD that has ever inhabited the White House.

From Where I Sit

July 25th, 2011
12:06 pm

The good news is the Hack of a President will be gone in 2012 as he has done nothing for America except make things worse since he has been president!

Goodbye Barry!

Enough Said!

joe

July 25th, 2011
12:06 pm

But even Reid’s cuts are not real cuts…they are just reductions in spending allocations (or budget forcasts, which is better than nothing or Obama’s alternative). Need someone like Rand Paul to actually make the hard cuts we need as a nation.

Scott

July 25th, 2011
12:07 pm

Obama has bent over backwards is a joke! This administration has not proposed or passed a budget in over 800+ days. Obama should have worried about this a long time ago, instead of parties, golfing, and his vacations

clem

July 25th, 2011
12:09 pm

does anyone really believe repubs know anything about governing? total sellouts to big money, dems are half arse sellouts

Peadawg

July 25th, 2011
12:11 pm

“The demand from both sides of Congress that the President be involved from day one just shows the lack of courage on the part of members of Congress.” – This one made me lol. You’re funny.

glacialspeed

July 25th, 2011
12:11 pm

Wingnut,

He’s alone with a majority of the American people.

Obama is a LIAR and a FRAUD

July 25th, 2011
12:13 pm

It will be so satisfying when Obama the FRAUD is run out of office next year…

itpdude

July 25th, 2011
12:15 pm

The GOP looks like children. They aren’t serious people.

td

July 25th, 2011
12:15 pm

This is what I do not understand. Democrats had control of the House and Senate and he is the one that signed the extension of the Bush tax cuts. Now he is trying to do everything possible, including taking a chance of defaulting on the debt, to repeal the tax cuts he signed and said was needed because the economy was so bad. I so not see the economy any better. One could say that he knows he will not get re elected so he is going to do everything in his power to take the country as far to the left as he can while he still holds office.

Lil' Barry Bailout

July 25th, 2011
12:16 pm

A majority of Americans support the GOP’s “cut cap and balance”.

How do you like THAT poll?

JRev

July 25th, 2011
12:17 pm

If anyone truly believes ANY member of congress or the President really wants to see a default, then you should be banned from voting for life. It’s Congress’s JOB to get this done, not the President’s. If we default, then it is not Obama’s fault; it is the fault of Congress and we should vote EVERY SINGLE current member OUT. And finally, anyone claiming Obama is a leftist is apparently not fond of things like facts and history. If anything, Obama has been quite a centrist as President.

Check these stats

July 25th, 2011
12:19 pm

Wingfield is just covering his bases in case is default. Obama”s failure to demand a clean debt ceiling bill, as republicans did 6 times under Bush, was his downfall. There are some in the House, I won’t name a party, who won’t vote for a debt ceiling increase at all. As if that is being fiscally responsible. Obama’s a whimp and House republicans are the real gangster government. Like letting an arsonist put the fire out at your house right after they’ve set fire to it.

Wingfield singing the praises of Harry Reid. Go figure.

Check these stats

July 25th, 2011
12:22 pm

td you forget, republicans wouldn’t pass legislation extending unemployment insurance for millions of Americans for ONE year unless the Bush tax cuts were extended for TWO. True gangsters indeed.

The truth hurts, democrats

July 25th, 2011
12:22 pm

Obama and the democrats are so full of crap… run them out of DC on a rail.

BW

July 25th, 2011
12:22 pm

Thank you jconservative…the Congress has to present a bill, get it signed in both chambers, and then get it to the President’s desk. The legislative branch has been abdicating its responsibilities at least since Vietnam so now it’s just normal to say that the President isn’t “doing his job.” Please…how about the Republican House crank out a bill that the Democratic Senate will agree to so the President can then sign it? The parties have plenty of time between now and Nov 2012 to attempt to score political points.

Ayn Rant

July 25th, 2011
12:22 pm

The debt ceiling fiasco reflects poorly on Republican politicians. Instead of getting on with federal budgeting, where actual spending cuts and revenue increases can be made, or replacing the atricious federal tax code, the Republicans have quarreled and postured for several months over the debt ceiling, which is a useless political contrivance.

All deficit reduction “plans” tendered by Republican and Democrat politicians call for deficit spending for the next several years. So, what is controversial, what is debatable, about raising the debt ceiling?

So many idiots, not enough poets

July 25th, 2011
12:23 pm

At the risk of sounding like an Obama supporter (which I’m not, the truth of the matter is that it the job of Congress to bring forth budgetary and monetary proposals to the President for either acceptance or veto. Claiming that the President hasn’t come forth with a plan is like telling the CEO of your company that he needs to come down to HR and put together an acceptable solution for the company picnic.

Susan

July 25th, 2011
12:24 pm

They have to raise taxes on the rich. After all, the rich are the ones who created the debt by starting wars in the Middle East. The poor and middle class have already paid their fair share–with their lives.

Steve

July 25th, 2011
12:26 pm

“it is the fault of Congress and we should vote EVERY SINGLE current member OUT”

We started that process in Nov 2010. With the then-democratically controlled House & Senate. You remember, the ones that refused to pass a budget.

Jefferson

July 25th, 2011
12:26 pm

If the GOP had an iota of credibility the country would be better off, now they have stopped everything.

Robert Chapman

July 25th, 2011
12:27 pm

Mr. Wingfield is too involved in the political tussle to report accurately. Constitutionally, the President has no say in the debt authorization. He is expected to make a proposal, but it is the Congress, not the President that has the authority and responsibility to make the laws that will authorize an increase of the national debt.

At the beginning of these “negotiations” the President set forth a $ 4 trillion deficit reduction that gained that number with a combination of revenue enhancements and spending cuts applied in a ratio of $! of revenue enhancement cuts to $3 in spending cuts. That is $ 1 trillion in revenue enhancement to $ 3 trillion in cuts.

$2.7 trillion looks a lot more like $ 3 trillion in cuts than any other number that has been presented thus far.

When it dawns on the innumerates in the House that they have gone as far as they can go with spending cuts and the deficit is still out of control the fun will be really begin.

Lil' Barry Bailout

July 25th, 2011
12:27 pm

I suspect that Ayn would find some reason why the GOP shouldn’t be debating spending cuts during the budget process too.

Lil' Barry Bailout

July 25th, 2011
12:29 pm

Hey Jefferson, guess who has “stopped” the annual budget process? That’s right, Senate Democrats!

Hypocrite.

Robert Chapman

July 25th, 2011
12:30 pm

Obama has bent over backwards is a joke! This administration has not proposed or passed a budget in over 800+ days.

Scott, please pretend like you are an American and read the constitution, the Congress, not the President passes the budget.

So many idiots, not enough poets

July 25th, 2011
12:30 pm

Robert Chapman – “Constitutionally, the President has no say in the debt authorization.”

Exactly. Unless the House and the Senate want to dis-band and ratify the constitution to give absolute power to the President, thereby turning us into a monarchy or dictatorship, they would do well to follow the precepts as outlined in the constitution rather than waiting for the president to do their job for them.

BW

July 25th, 2011
12:31 pm

Speaking of the Constitution Robert….is it the President’s job or Congress’ job to pass a budget?

Jimmy62

July 25th, 2011
12:31 pm

Obama is a joke. He is the holdout, not the GOP. The GOP has suggested several different plans, ones actually laid out with specifics on paper. They aren’t the best plans, but they are plans. Obama’s “plan” is vague and ambiguous, and the only real plan he seems to have is to win the next election, not fix anything.

Yes, the debt ceiling was raised several times when Bush was in office. However, the debt was half what it is now, and the deficit like 20% of what it is now. That’s a big freaking difference. When I am in debt a couple of hundred dollars, I might be ok with a little more debt. When I’m in debt a couple of thousand, it’s a different story. Too bad left wingers on this board can’t understand that simple concept.

The Democrats have punted their legal responsibility to pass a budget for the last two years. That’s not the GOP’s fault, that’s the Democratic Party’s fault. If you can’t even pass a budget, you shouldn’t be given more responsibility.

williebkind

July 25th, 2011
12:32 pm

Susan

July 25th, 2011
12:24 pm
Susan you just do not get it do you? If you do not tax the rich then you do not have money to spend on the dependent democratic plantation. That encourage the plantation dwellers to become more responsible for their lives. Atlas they would become tax payers….what a dream.

Dick

July 25th, 2011
12:32 pm

The Cut, Cap and Balance political scheme, will brutally tie America down. America should not be limited, nor should it’s abilities be slowed down. The Cut, Cap and Balance plan, at it’s core is is treasonous, if you really think about it.

In the future, only countries capable of turning on a dime will be “World Leaders”.

The truth hurts, democrats

July 25th, 2011
12:33 pm

Exactly Jimmy62, Obama IS a joke. A bad one at that.

Robert Chapman

July 25th, 2011
12:34 pm

Wingfield is just covering his bases in case is default. Obama”s failure to demand a clean debt ceiling bill, as republicans did 6 times under Bush, was his downfall.

There is some validity in Check these stats contention that Obama should have opted for a clean debt bill.

But there are counter arguments to it as well, the biggest one being that the White House congressional liasons believed the TEA Party faction in the House would demand a plan for cutting the deficit from the President as the conditio sine qua non for a debt authorization.

The events of the past several weeks indicate the second version is closer to what actually happened.

RGB

July 25th, 2011
12:35 pm

Susan,

You really should come up with some new lines (lies).

“State” doesn’t begin to describe them.

RGB

July 25th, 2011
12:35 pm

Robert Chapman

July 25th, 2011
12:37 pm

Obama and the democrats are so full of crap… run them out of DC on a rail.

Intelligent, cogent, mature well-reasoned argumentation of the issues based on facts pertinent to the matter at hand. Just what one expects from conservatives and the root of the gridlock in Washington, DC.

DannyX

July 25th, 2011
12:37 pm

Another day another Lil Barry hallucination.

The fact is Republicans are not doing well in any poll on the subject. In fact the opposite is true.

Last week, CNN

Based on what you have read or heard about the discussions between Congress and Barack Obama on the debt ceiling, do you think Obama has or has not acted responsibly? Republicans?

Yes, has acted responsibly:
Obama 52% (Up 5 pts since Apr.)
Republicans 32%

A Gallup poll from last week shows a super majority of Americans favor a combination of spending cuts and tax hikes, including 73% of all independents.

oldguy

July 25th, 2011
12:38 pm

I hope the President sticks to his guns most of the public is with him we can’t begin to balance the budget simply by cuting intilement programs we’ve all got to give a little .EVEN THE RICH!!!!!!!!!!!!

So many idiots, not enough poets

July 25th, 2011
12:41 pm

Dannyx – “including 73% of all independents.”

And there’s the concept that the partisan sheep fail to grasp. Independents, not party faithful, are the key to winning elections.

Robert Chapman

July 25th, 2011
12:41 pm

I suspect that Ayn would find some reason why the GOP shouldn’t be debating spending cuts during the budget process too.

Another common conservative debate practice putting words in the opponents’ mouth that were never spoken.

How about waiting until the GOP unclogs the calendar and begins debate on the budget before prediciting what Ayn Rant or anyone else will say about it.

williebkind

July 25th, 2011
12:41 pm

DannyX

July 25th, 2011
12:37 pm
You say Lil barry is hallucinating and you go by a CNN poll…hahahahhahehehe. No thanks I do need to smoke anything that does my brain that way.

Yahtzee

July 25th, 2011
12:43 pm

we have the most progressive tax system in the world, the “rich” pay more in taxes as a % of the total in this country than anywhere else in the world

williebkind

July 25th, 2011
12:45 pm

Robert Chapman

July 25th, 2011
12:37 pm
How many days have the democrats have to pass a budget when they were in control of congress? Nothing like procrastinating to put the American public on the edge. Liberals are so funny.

Yahtzee

July 25th, 2011
12:45 pm

the liberal/democrat agenda is to spend spend spend and grow the government to control every aspect of our lives…and when it comes time to foot the bill, they want to blame the gop…its bush’s fault, it’s reagan’s fault

Ragnar Danneskjöld

July 25th, 2011
12:47 pm

Good afternoon all. The report on Sen. Reid’s effort, if true, is encouraging – it suggests that the democrats are coming to terms with the real cause of our financial distress, the out-of-control Federal spending. Every dollar spent by the government precludes an equal amount of investment/spending by the productive economy, and it is this preclusion – coupled with the ever increasing regulatory burden – that inhibits recovery today. Nobody should be surprised that the President does not yet grasp the economic reality that the “stimulus” was a colossal failure; such is his intellectual limitation on matters economic. But if Sen. Reid is beginning to get it, others will.

williebkind

July 25th, 2011
12:48 pm

The conservatives donate more to charity than the liberals. Is taxing the only way to pay for something? For liberals yes it is.