According to Reuters, citing a senior aide, President Barack Obama failed to placate Democrats at White House meeting Thursday night on possible debt deal.
Yesterday The New York Times first reported that Obama and Speaker of the House John Boehner (R-OH) were near a $3 trillion deficit reduction deal to coincide with raising the debt ceiling.
Obama summoned Democratic congressional leaders to the White House Thursday to push them to back the proposal — apparently unsuccessfully.
According to congressional sources the agreement would include approximately $3 trillion in spending cuts, while including painful incentives to reform the tax code.
Obama demanded that the tax system be overhauled by the end 2012, or else the Bush tax cuts would expire; while Boehner is pushing for the repeal of the “individual mandate” in the health care reform law passed last year if no agreement on taxes is reached, The New York Times reports.
The Reuters source said Democrats see “no guarantees of additional revenue” — which they consider a dealbreaker.
Boehner met with House Republicans Friday morning, confirming privately what he has repeatedly said publicly, that there is no debt limit deal yet. Citing a Republican lawmaker in the room, Reuters reports Boehner said he will continue working for a “resolution.”
While spokespeople for both Obama and Boehner have denied an agreement is in the works, congressional Democrats are — in the words of Sen. Barbara Mikulski (D-MD) —”volcanic” that a deal without revenues is being seriously considered.
Senate Majority Leader Harry Reid (D-NV) said of the reported deal: “There has to be some fairness to this. This can’t be all cuts. There has to be balance.”
Obama and Boehner were hoping that given the opportunity, leaders of both parties would embrace the opportunity to produce historic reforms from their as yet do-nothing Congress.
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