Politics

‘Try to Get Biggest Deal Possible’ on Deficit, Geithner Says

WASHINGTON (AP) — President Barack Obama hasn’t given up on getting congressional leaders to accept a $4 trillion debt reduction deal that Republicans have rejected for its tax increases and Democrats dislike for its cuts to programs for seniors and the poor, administration officials said hours before talks resumed Sunday.

“He’s not someone to walk away from a tough fight,” presidential chief of staff William Daley said. “Everyone agrees that a number around $4 trillion is the number that will … make a serious dent in our deficit.”

Try to Get Biggest Deal Possible on Deficit, Geithner Says

But House and Senate Republican leaders now say the largest of three proposals under consideration would not pass the GOP-led House because of its tax increases, an abrupt shift in negotiation over the terms of raising the nation’s debt ceiling before an Aug. 2 deadline.

House Speaker John Boehner, R-Ohio, announced late Saturday that he was rejecting that proposal. Heading into the talks at 6 p.m. EDT, the top Senate Republican, Mitch McConnell of Kentucky, suggested the deal was dead.

“I think it is,” McConnell said. Raising taxes amid 9.2 percent unemployment, he added, “is a terrible idea. It’s a job killer.”

The back-and-forth on the Sunday morning talk shows came hours before Obama and eight lawmakers of both parties were to convene at the White House over a plan to raise the nation’s borrowing capacity from $14.3 trillion before next month’s deadline, when administration officials say the nation would default on its debts.

Republicans have demanded that any plan to raise the borrowing limit be coupled with massive spending cuts to lighten the burden of government on the struggling economy. Higher taxes, Republicans have said from the start, are deal-killers if not offset elsewhere.

But Obama has a long way to go to satisfy lawmakers in his own party, too. Many Democrats are unnerved by the president’s $4 trillion proposal because of its changes to Medicare and Medicaid.

Political pain is part of the deal, too, and should be worth bearing, Daley said, adding that Obama was calling on lawmakers to “step up and be leaders.”

He cast Obama as uninterested, for now, in two more modest proposals to raise the debt limit for a shorter time, in exchange for smaller spending cuts. But Daley and Treasury Secretary Timothy Geithner used rhetoric that appeared to acknowledge the prospects for the $4 trillion deal could be in doubt.

“We’re going to try to get the biggest deal possible,” Geithner said.

He cautioned that a package about half the size of the one Obama prefers would be equally tough to negotiate because it, too, could require hundreds of billions in new tax revenue.

Expectations for Sunday’s meeting took an abrupt turn after Boehner informed Obama that a package of about $2 trillion identified but not agreed to by bipartisan negotiators was more realistic.

In a statement, Boehner said: “Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes.”

A bipartisan group of lawmakers led by Vice President Joe Biden had already identified, but not signed off on, about $2 trillion in deficit reductions, most accomplished through spending cuts.

“I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase,” Boehner said.

After holding a secret meeting with Boehner last weekend, Obama and aides said they believed an even bigger figure was attainable if both parties made politically painful, but potentially historic, choices.

A Republican official familiar with the discussions said taxes and the major health and retirement entitlement programs continued to be sticking points.

Obama wanted Republicans to accept closing some corporate tax loopholes and subsidies to corporations, ending a tax friendly inventory accounting system for businesses, as well as reducing the value of tax deductions for wealthy taxpayers.

A senior administration official said the discussion on taxes broke down over the administration’s desire to have the wealthy pick up a bigger share of the tax revenue load than Republicans were willing to accept.

The official, speaking on the condition of anonymity because of the sensitivity of the negotiations, said the $2 trillion to $2.4 trillion in deficit reduction identified by the Biden-led negotiations remains under negotiation and will also require some new tax revenue of up to $400 billion.

Daley was on ABC’s “This Week,“ McConnell appeared on ”Fox News Sunday” and Geithner was interviewed on NBC’s “Meet the Press” and CBS’ “Face the Nation.”

Comments (154)

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  • Look4DBigPicture
    Posted on July 10, 2011 at 2:19pm

    Ignorance has no party affiliation. This insanity has been going on under our noses for decades, so shame on us for not noticing. We Americans need to be very diligent about knowing who we vote for in 2012 … and so far, my research points to Ron Paul as our best chance for getting America united and prosperous again.

    Report Post »  
    • Mateytwo Barreett
      Posted on July 10, 2011 at 2:43pm

      It must be kinda like being acop. You sit there and watch the drives stretch the rules and s t r e t c h the rules. But then BANG ya got somw smartass illegal that can‘t read the signs and doesn’t have a licence! (Huh! that anology is better than I thought!!)

      Report Post » Mateytwo Barreett  
  • Volsense
    Posted on July 10, 2011 at 2:18pm

    Lil Timmy has the same problem that Obama has with the truth. It has to be due to incompetence because when lies and deceptions become this obvious, even the leftwing lemming nutjobs are being emebarrassed.

    Report Post »  
  • heyjim55
    Posted on July 10, 2011 at 2:17pm

    I do not understand why people continue to think that these criminals are trying to solve a problem or improve our economy but can’t seem to agree on just how best to do it. Cut spending ? mainly on Social Security and Medicare, raise Taxes on the rich? or both? It’s a show people they are taking this country down on purpose. There are no jobs nothing is being done about it, remember the Bush tax cuts that was extended to help stimulate the economy and job growth. Those cuts have been in existence for 11 years see any jobs?? you have a president who has done nothing but spend money and borrow money and dismisses unemployment . You have the Republican party wanting to stop unemployment extensions and, cut spending on all entitlements like Social Security and Medicare, welfare but have no problem with defense spending being bigger than China and Russia’s combined. They have both ran up Government spending the last 11 years, and have both failed to prosecute Wall Street , or any of the banks . The Federal reserve is monetizing the debt and will soon release QE 3 or it’s equivalent. Do you not think that the Federal reserve knows that what their doing, this is not a bad call or someone receiving bad advice this is on purpose plain and simple , why would Eric Cantor bet against the US economy?? along with George Soros if he did not know already that this ship was going down ?

    Report Post »  
    • ripcord506
      Posted on July 10, 2011 at 3:21pm

      No more raising debt ceiling, feds get 200 billion a month,pay 20 billion a month on paying on debt and 180 billion a month for the budget,that all folks,let them service the budget with that not the 300 billion they want

      Report Post »  
  • panz
    Posted on July 10, 2011 at 2:14pm

    Tiny Timmy and Barry want the biggest deal possible because they think it will get them the biggest increase in the debt limit thereby allowing them to borrow more and – wait for it – spend more. Why? Because they are clueless. Spending is the only thing they know how to do.

    Report Post » panz  
    • BehindBlueEyes
      Posted on July 11, 2011 at 6:19am

      Timmy and others are supporting the fundamental transformation of America (aka Cloward and Piven plan). When America crashes and burns it will no longer be an obstacle for Mr. Soros’ new world order.
      Then, as Mr. Soros likes to say, America will find its place in the new world order.

      Report Post » BehindBlueEyes  
  • WILLIAM E.
    Posted on July 10, 2011 at 2:07pm

    With all the word trickery etc. you cannot believe any thing these wise people tell you. “You Have To Read It” after it is passed to see how you got screwed again !!

    Report Post »  
  • ofallon
    Posted on July 10, 2011 at 2:05pm

    Timmy is soon leaving and he wants to go out with a big bang before he exits Stage Left. Adios Mr. Loser.

    Report Post »  
    • TomFerrari
      Posted on July 11, 2011 at 7:38am

      You are probably right!
      The rest of obummer’s economic team has already jumped ship – their keynesian economics FAIL has them tucking their tails and running back to academia to propagandize another generation of children.

      Report Post » TomFerrari  
  • abbygirl1994
    Posted on July 10, 2011 at 2:02pm

    Geithner the tax cheat would want the biggest deal ever. Maybe this country needs a depression to wake up. We just can’t seem to get the attention of any lawmaker. We voted in all these Republicans and so far all I see them doing is useless things. God forgive them and God forgive us for having any sort of faith in them to vote them in.

    Report Post » abbygirl1994  
  • IMCHRISTIAN
    Posted on July 10, 2011 at 2:02pm

    The Pres. is arrogant, has lied and has a glare at people that is right down evil looking at times. He has no intention on slowing down spending if we go by his past. He is against some of our friends around the world and gives money for war as in Libya who we know nothing about as to how they feel about us except when we help them out. Chile got money from us. I hope we have a good audit on the money that has been spent to date and what it was used for.

    I hope that the Republicans do not raise the debt ceiling. Buffett and Gates set up something together years ago so are they getting a tax break? If anyone lies on their income tax forms they should be looked into but just to take money from anyone just because he feels it is right to take from one person to give to another is wrong. We have Charities that we give to for giving.

    The President is a nice looking fellow, loves to campaign but a fast talker.

    Report Post »  
  • historypaper
    Posted on July 10, 2011 at 1:48pm

    Last year was the time to plan for the great Obama Socialist Justice Revolution and the possibility of civil unrest, in your neighborhood.
    We have 25 million people unemployed or under-employed in America and millions of people now homeless because of the hard-left, black liberation, Barney Frank, Hillary Clinton and Barack Obama garden of doom planted over several years.
    For the first time in American history your children will become challenged within energy, food supply, security, dollar stability or removal, housing with a great possibility of world war with Islamic Muslim Brotherhood radicals now waiting to strike.
    Obama has run off our gallant allies and believe me we stand alone. U.S. fighting men are being pulled from around the world to save money and plant the Islamic Muslim Victory Garden around the world.
    It’s summer so try and catch a grasshopper and you’ll realize the Obama Truth is the same way, you can never seem to catch the truth, it’s a fable of lies and Chinese money

    Report Post » historypaper  
  • Fina Biscotti
    Posted on July 10, 2011 at 1:42pm

    When Democrats claim that their party – under the Clinton Administration – passed a balanaced BUDGET that was destroyed by the Bush Administration – that caused Obama to inherit the mess =

    facts: Republican controlled House and Senate under the Clinton Administration;
    Clinton submitted a budget FIVE times before he realized he had to get straight – in order for it to pass – through a Republican controlled House and Senate.

    Obama has spent more than all other presidents combined – in just TWO Years of Obama in office.

    Report Post »  
  • oregonrr
    Posted on July 10, 2011 at 1:40pm

    1. 2 000 000 000 000 Dollars in tax increases / 140 000 000 generous number of working population (in fact 45% of them pay taxes) = 14 285.7143 per person in taxes (in fact it’s more like 30,000 usd)

    2. Foreign Aid, planned parenthood, president’s holidays and expenses, white house parties, fluff benefits for congress and senate, 24 staff roster to take care of lady mongrel with a big butt, lots and lots and lots of things, plus these sick “wars” we are fighting for no reason and watching our children die and come home with PDWS!!!! ..I am tired of listening to B.S.

    Report Post »  
    • cloudsofwar
      Posted on July 10, 2011 at 1:56pm

      BO says, it’s good to be the KING

      Report Post »  
    • turkey13
      Posted on July 10, 2011 at 6:36pm

      My wife and I thought we were the only ones that noticed her big butt. It only shows when she wears dumb tight outfits.

      Report Post »  
  • rienheart
    Posted on July 10, 2011 at 1:37pm

    This Administration, Democrats and RINO’s are LYING, CHEATING, KILLING, with impunity. It is time to put OUR HOUSE (AMERICA) in order. Investigate, Prosecute, Imprison ALL TRAITORS.

    Report Post »  
    • redneck hickabilly
      Posted on July 10, 2011 at 2:58pm

      you should google the original 13th amendment–
      its still the law of the land “title and nobility act” all of them are traitors and none usa citizens

      Report Post »  
    • turkey13
      Posted on July 10, 2011 at 3:22pm

      Forget the traitors – I just want every congress person investigated by the IRS and if they are like Rangle and Timmy and didn’t pay put them in jail or conviscate their holdings. Shucks – this what will happen to me or you. Don’t forget the other 6 zsars that had to decline because they owed the USA. I never heard any more about it except Nancy telling Rangle what a bad boy he was.

      Report Post »  
    • MIBUGNU2
      Posted on July 10, 2011 at 9:20pm

      what are we stuck with ? Bama,,This Clown and his Administration
      are totaly over their heads…..were F’d !!! A Republican Speaker with No
      Spine, The most Bias Media in our Countrys history..Looks Bleak……..
      All I can say is, this PC Bullshi** has to stop..and We desperately
      need a LEADER !!!! something lacking with this Administration…….

      Report Post » MIBUGNU2  
  • paulusmaximus
    Posted on July 10, 2011 at 1:33pm

    I can’t and anything to the above. We all knew that Washington was playing the same old game. The defict will NOT be reduced, taxes will increse on the MIDDLE CLASS Congress will get a pay raise slipped in there somewhere If it isn’t slipped in already ( so will B.O. ) Daily, Giehitner see us as only fools and Boehner is just a Republican hack. We The People means nothing to any of them!

    Report Post » paulusmaximus  
    • 101
      Posted on July 10, 2011 at 6:58pm

      Government has gotten too big to ever reach a consensus, whether it’s across the aisle or their own side. Congress is a failure the whole administration is a failure. Only when everything collapses, when their failed policies can no longer pay the bills can America rebuild. Fact is America is going to crash hard!

      Report Post »  
  • Richard Compton
    Posted on July 10, 2011 at 1:31pm

    How about whats best for the country Mr. Geithner, like cut government spending by 40% shrink the government by 50% that means all unnecessary government jobs go away and stay gone forever. Cut everything, get rid of all double oversight posistions. You’ve asked the American people to tighten their belts while you went on a spending spree with Obama and you buddy Bernache (sp) printed the money for you to spend. Get real, stop using this situation for polital gain, the people are on to you and Obama!

    Report Post »  
    • drphil69
      Posted on July 10, 2011 at 3:09pm

      “Everyone agrees that a number around $4 trillion is the number that will … make a serious dent in our deficit,” presidential chief of staff William Daley said.

      This is over 10 years… or $400 billion per year (of course, most if not all of it comes in the “out” years, which means it will never happen). Current deficit is $1.65 trillion. The average deficit then, for the next 10 years, is $1.25 trillion per year. Mr. Daley, anybody that agrees to call this a “serious dent” is either a fool, or is trying to fool others… which are you, Mr. Daley? Which are you, Mr. President?”

      Report Post »  
    • SPOT_OF_TEA
      Posted on July 10, 2011 at 3:11pm

      We should have been demanding from the start that these secret behind closed door meetings be made public.

      Report Post » SPOT_OF_TEA  
    • Micmac
      Posted on July 10, 2011 at 3:24pm

      Geithner and Bernache are great examples of The Peter Principle. And at the other end it’s Curley, Moe and Beiden. Where are the Milton Freedman’s of old (not the current one). The White House will tell you what you want to hear (part of their playbook) and then do as it pleases. Do you really think Boehner can take on their machine. Boehner is in dreamland. He’s more suitable asking Popeye for a hamburger. Put someone like a Paul Ryan/Michele B. in the room with these people, when Ryan’s not busy buying $250.00 bottles of wine. The only, and I say ONLY way to stop all of this is for the individual states to come together and take back the power it has GIVEN to the Feds. Which one of the following is not an extension of the Progressive Party: Supreme Court, AG, EPA, Fed, DoE, ad nausium? Now ask yourself what agencies are part of the Elephant Party.

      Report Post »  
  • cloudsofwar
    Posted on July 10, 2011 at 1:27pm

    How come little Timmy doesn’t go on Fox? i guess Timmys crying won’t reach the right ears. the Libs and the Independents (fence sitters).

    Report Post »  
    • Sicboy
      Posted on July 10, 2011 at 2:39pm

      Sounds like Washington talk for screw the middle class tax payer. Were spending your money. Good luck buddy.

      Report Post » Sicboy  
  • RepubliCorp
    Posted on July 10, 2011 at 1:25pm

    Drop the commie BS and tear a page out Reagan’s book. He had to face just as bad of a economy. And he never blamed anyone…………
    Reagan cut the top marginal tax rate in half forn 70% to 28% and doubled revenue to the treasury in 8 year

    Report Post » RepubliCorp  
    • TeaPartyFails
      Posted on July 10, 2011 at 3:56pm

      Interesting note about Reagan-he didn’t actually cut taxes for the lower or middle class, just the upper. Furthermore, he spent more money and ran the biggest deficit on military spending since WWII. Conservatives today pretend to use Reagan as their mantra, but in today’s terms Reagan would be considered very liberal–his economic plan was literally to stimulate the economy, except he did it through the defense budget rather than through social services.

      Report Post »  
  • seeker9
    Posted on July 10, 2011 at 1:24pm

    Cannot watch any more of these interviews lest I hear the “corporate je*’ words again. What inciteful language!

    Report Post » seeker9  
  • Viking64
    Posted on July 10, 2011 at 1:23pm

    Spend us into oblivion , then get a different job! Tim your record speaks for itself!, we need moral leaders not lies

    Report Post »  
  • last frontier
    Posted on July 10, 2011 at 1:22pm

    Try for the biggest deal possible then compromise and cut it in half then let the communist media will go to work calling the republicans names and claim they are not willing to do there part and raise taxes on the learjet middle class. OOH TIMMY is so kwafty.

    Report Post » last frontier  
  • cloudsofwar
    Posted on July 10, 2011 at 1:21pm

    Obama is the worse SOCIALIST President of all time. Raise Taxes and Raise Taxes. who else can i Nationalize. hmm maybe i should go after personal savings accounts. you don’t need to save that money, the government (Obama) needs it. if you have some savings and a retirement account and you own your house BO is coming for you (us). Hugo and Obama sitting in a tree……

    Report Post »  
    • BOMUSTGO
      Posted on July 10, 2011 at 1:48pm

      Is there such a thing as a good SOCIALIST president???

      Report Post » BOMUSTGO  
  • forGodandcountry
    Posted on July 10, 2011 at 1:20pm

    Let’s see REAL cuts, not the smoke and mirrors we’ve seen before. Economics 101: If you want to stay within a budget, STOP SPENDING.

    Report Post »  
  • BigMuddy
    Posted on July 10, 2011 at 1:20pm

    Geithner is a thief.

    Report Post »  
    • CatB
      Posted on July 10, 2011 at 1:46pm

      You got that right .. little TAX CHEAT TIMMY is a liar AND a THIEF!

      Report Post »  
    • Mateytwo Barreett
      Posted on July 10, 2011 at 2:00pm

      Wouldn’t it be nice if thats all the sneaky, connivin’, two-faced, sleazy,lyin’ little twit IS. Watch the li’l ****** hands. . .Hebecomes more animated when he is trying to deflect inquiries into his falsehoods Tis is accompanied by a sideways shift in posture. It almost looks as though he is ready to run (physically) if anybody probes too hard. Don’t believe me? Watch a farret, afterall thats a cousin toi the WEASEL.

      Report Post » Mateytwo Barreett  
  • BOMUSTGO
    Posted on July 10, 2011 at 1:14pm

    I’m not buying it! Just paying for it!!

    Report Post » BOMUSTGO  
  • cloudsofwar
    Posted on July 10, 2011 at 1:12pm

    Obama’s plan is to destroy the republicans. you can not increase taxes no matter what cuts you make. if the repubs agreed to BO’s plan, BO would say, look they (r’s) raised your taxes and cut medicare and medicade for the old folks. BO thinks he’s slick and were stupid.

    Report Post »  
    • hauschild
      Posted on July 10, 2011 at 1:29pm

      Raising taxes should ALWAYS be considered a FAILURE. Why? Because you, as the primary fiscal leader of the country, are essentially admitting you have no ability to manage finances; you’ve failed the citizenry of America tremendously. Raising taxes also is a type of reward for very, very bad fiscal behavior because it does nothing but mask your financial woes.

      I‘m not sure why liberals don’t want to accept these truths. Is it because they’re that afraid of admitting the obvious to themselves and their fellow bottom feeders? Must be.

      I’ve been watching the usual suspect talking heads and was surprised to hear Ben Stein wants taxes raised. Well, Ben, what happens when taxes are raised, and none of the resulting revenue makes a dent in the debt OR politicians‘ and bottom feeders’ fiscal behavior? What fiscal problem has been solved?

      People with no backbone or intestinal fortitude need to step aside and continue to cower in a corner and let the real men and women of America take care of bidness!

      Report Post »  
  • The_Almighty_Creestof
    Posted on July 10, 2011 at 1:07pm

    Question is…are they actual cuts…or just not spending more as already planned? If I decide I need to cut my personal expenses by $25,000 next year …I do not accomplish it by deciding not to buy the new car I planned to get.

    Get the full scoop from these liars.

    Report Post »  
    • hauschild
      Posted on July 10, 2011 at 1:09pm

      It’s a sham!

      These losers should be behind bars!!!

      Report Post »  
    • GrannyATL
      Posted on July 10, 2011 at 1:21pm

      BOEHNER, LISTEN UP — You have caved in to the Obama administration EACH AND EVERY time the debt ceiling has been discussed. You lost our confidence in you when you touted your last victory of budget cutting which ended up being a sham. Progressive Left or Progressive Right — makes no difference and we are finally figuring that out.

      The ONLY way that we could accept an increase in the debt ceilling is if you follow the guidelines in the “Cut, Cap and Balance” pledge — http://www.cutcapbalancepledge.com

      Simple as that. Anything less and there is going to be another massive wave of Republicans replaced come 2012.

      Report Post » GrannyATL  
    • Snowleopard {gallery of cat folks}
      Posted on July 10, 2011 at 1:26pm

      I have to agree with you on that, are these actual and solid in stone cuts? Or are they just the usual promise to reduce the increases of annual spending in different areas? The matter of the budget as well as the debt and deficits need to be in a Constitutional Ammendment that can fully survive a Supreme Court challenge and have the iron clad teeth to make it stick and work automatically.

      Report Post » Snowleopard {gallery of cat folks}  
    • vrodder
      Posted on July 10, 2011 at 1:38pm

      No, they are not. Notice the budget cuts are over a 10 year span, but the proposed “revenue increases” are immediate. These politicians are promising that the next congress are going to stick to these budget plans with no way to make them. Its all a joke!

      Report Post »  
    • CatB
      Posted on July 10, 2011 at 1:45pm

      “behind bars” is too good for them .. used to be TRAITORS were dealt with in a more “permanent” manner!

      TEA!

      Report Post »  
    • 13th Imam
      Posted on July 10, 2011 at 2:06pm

      sounds like the same thing the DEMOLITIONCRATS did to Ronaldus Magnus, promise future spending cuts for immediate tax rate decreases. the spending cuts NEVER came. You Demo’s are not fooling us again.
      Just say no new Taxes

      Report Post » 13th Imam  
    • sissykatz
      Posted on July 10, 2011 at 2:34pm

      Almighty —– I think you have it exactly as they plan to do. Somebody with some financial sense needs to be in this administrtion.

      CatB—- You also have it right, Sending this crew to jail is too good for them. They are in fact “Traitors” of the worse kind.

      The Republicans better not buckle on this, it is way too important. They better get a spine and grow another part of the “Anatomy” to deal with this.. Lord help us make it until we can take over in 2012.

      Report Post »  
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