As enthusiasm for the Senate “Gang of Six” deficit reduction plan fades, President Barack Obama and House Republicans yesterday discussed resurrecting a “grand bargain,” The New York Times reports.The return to a $4 trillion deal is the latest twist in the negotiations, which have sputtered forward and back over the past several weeks.
Speaker of the House John Boehner (R-OH) and House Majority Leader Eric Cantor (R-VA) met with Obama at the White House Wednesday afternoon, where they once again considered including entitlement cuts and tax reform in a deficit reduction package.
Indeed, as deep as the divide between House Democrats and Republicans has become, the House GOP leadership is even more unwilling to give a “win” to either Senate plan under consideration.
As the legendary Democratic Speaker of the House Tip O’Neill said, “House Republicans are not the enemy, they’re the opposition. The Senate is the enemy.”
Speaker of the House John Boehner (R-OH) is still open to a deal that includes new revenues, as the President demands, if it also lowered tax rates. This semantic cover would allow him to wrangle moderate Republicans to support a deal.
House Majority Leader Eric Cantor (R-VA) is concerned by the level of revenue increases in the “Gang of Six” proposal — as much as $1 trillion — but he has shown some openness to smaller amounts.
The White House said President Barack Obama is open to a temporary debt limit increase of a few days to allow lawmakers time to iron out a “big deal.”
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