House Speaker John Boehner walked away from negotiations Friday, complaining that Mr. Obama would not agree to Republican demands that the deal not include any tax increases. Shortly after Boehner made his decision public, Mr. Obama, appearing frustrated, appeared before reporters to explain what had been on the table and hammer Boehner for walking away from an "extraordinarily fair deal."
The deal on the table, as Mr. Obama laid it out, included more than $1 trillion in cuts to domestic and defense discretionary spending, as well as $650 billion in cuts to entitlement programs - Medicare, Medicaid and Social Security. He said he asked for approximately $1.2 trillion in revenue increases that he said would have come from eliminating loopholes and deductions and engaging in broad tax reform, not hiking tax rates.
The deal, he said, called for less in tax increases than the deal worked out by the bipartisan "Gang of Six" negotiators, while including as much in discretionary savings. He said if the deal was unbalanced, "it was unbalanced in the direction of not enough revenue."
Appearing after Mr. Obama spoke, Boehner suggested the president "moved the goalposts" during discussions. He said there had been a closed-door agreement to increase revenues $800 billion through tax reform, but that Mr. Obama then insisted on an additional $400 billion in tax increases over 10 years.
Asked how the deal could break down over $40 billion per year over 10 years, Boehner said the tax increases would have been on "the very people that we expect to invest in our economy and create jobs" -- presumably high-earners.
"I can tell that you [House Majority Leader Eric] Cantor and I were very disappointed in this call for higher revenue," Boehner said. "Secondly, they refuse to get serious about cutting spending and making the tough choices that are facing our country on entitlement reform. That's the bottom line. I take the same oath of office as the president of the United States. I've got the same responsibilities as the president of the United States. And I think that's for both of us to do what's in the best interest of our country. And I can tell you that it's not in the best interest of our country to raise taxes during this difficult economy and it is not in the best interest of our country to ignore the serious spending challenges that we face."
(Credit: CBS)
Mr. Obama at one point suggested he "couldn't get a phone call returned" from Boehner earlier in the day, and said that when it comes to a deal, "I've been left at the altar now a couple of times." (A senior White House official later said the deal Mr. Obama was still on the table.) He said he was unable to guarantee that Social Security checks and other obligations would go out after the August 2 deadline, and said the blame falls on House Republicans who have been unwilling to compromise to get a deal done.
Mr. Obama said he was calling Congressional leaders to the White House Saturday morning at 11 a.m. "to explain to me how we are going to avoid default," acknowledging that discussions were basically back to square one.
"What this came down to is there doesn't seem to be a capacity for them to say yes," Mr. Obama said.
"I think the challenge really has to do with the seeming inability, particularly in the House of Representatives, to arrive at any kind of position that compromises any of their ideological preferences," he said. "None. And you've heard it. I'm not making this up. I think there are a number of members of that caucus that have been very clear about that."
Asked what he would say to calm skittish markets, Mr. Obama said, "I remain confident that we will get an extension of the debt limit and we will not default," but he was less confident that the GOP will step up and deal with underlying debt and deficits "in a way that is fair." He said he would be willing to sign a debt limit increase that did not include deficit reduction measures if presented such a bill by Congress.
"I think it's very important that the leadership understands that Wall Street will be opening on Monday and we'd better have some answers during the course of the next several days," Mr. Obama said.
Boehner also said he was "convinced" there would be no default. He said "absolutely not" when asked if he was pressured to walk away from the deal by his caucus.
The deal on the table, as Mr. Obama laid it out, included more than $1 trillion in cuts to domestic and defense discretionary spending, as well as $650 billion in cuts to entitlement programs - Medicare, Medicaid and Social Security. He said he asked for approximately $1.2 trillion in revenue increases that he said would have come from eliminating loopholes and deductions and engaging in broad tax reform, not hiking tax rates.
The deal, he said, called for less in tax increases than the deal worked out by the bipartisan "Gang of Six" negotiators, while including as much in discretionary savings. He said if the deal was unbalanced, "it was unbalanced in the direction of not enough revenue."
President Barack Obama makes a statement in the Brady Briefing Room at the White House in Washington, Friday, July 22, 2011 on the break down of debt ceiling talks.
Asked how the deal could break down over $40 billion per year over 10 years, Boehner said the tax increases would have been on "the very people that we expect to invest in our economy and create jobs" -- presumably high-earners.
"I can tell that you [House Majority Leader Eric] Cantor and I were very disappointed in this call for higher revenue," Boehner said. "Secondly, they refuse to get serious about cutting spending and making the tough choices that are facing our country on entitlement reform. That's the bottom line. I take the same oath of office as the president of the United States. I've got the same responsibilities as the president of the United States. And I think that's for both of us to do what's in the best interest of our country. And I can tell you that it's not in the best interest of our country to raise taxes during this difficult economy and it is not in the best interest of our country to ignore the serious spending challenges that we face."
(Credit: CBS) Mr. Obama at one point suggested he "couldn't get a phone call returned" from Boehner earlier in the day, and said that when it comes to a deal, "I've been left at the altar now a couple of times." (A senior White House official later said the deal Mr. Obama was still on the table.) He said he was unable to guarantee that Social Security checks and other obligations would go out after the August 2 deadline, and said the blame falls on House Republicans who have been unwilling to compromise to get a deal done.
Mr. Obama said he was calling Congressional leaders to the White House Saturday morning at 11 a.m. "to explain to me how we are going to avoid default," acknowledging that discussions were basically back to square one.
"What this came down to is there doesn't seem to be a capacity for them to say yes," Mr. Obama said.
"I think the challenge really has to do with the seeming inability, particularly in the House of Representatives, to arrive at any kind of position that compromises any of their ideological preferences," he said. "None. And you've heard it. I'm not making this up. I think there are a number of members of that caucus that have been very clear about that."
Asked what he would say to calm skittish markets, Mr. Obama said, "I remain confident that we will get an extension of the debt limit and we will not default," but he was less confident that the GOP will step up and deal with underlying debt and deficits "in a way that is fair." He said he would be willing to sign a debt limit increase that did not include deficit reduction measures if presented such a bill by Congress.
"I think it's very important that the leadership understands that Wall Street will be opening on Monday and we'd better have some answers during the course of the next several days," Mr. Obama said.
Boehner also said he was "convinced" there would be no default. He said "absolutely not" when asked if he was pressured to walk away from the deal by his caucus.
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