Government shutdown looms as congressional budget talks stall

Senate Majority Leader Harry Reid (D-NV) (L) and House Speaker John Boehner (R-OH) (R) during a news conference at the U.S. Capitol on March 2, 2011.

Updated: 3:43 p.m. ET

With less than two weeks left to avoid a government shutdown, Democratic lawmakers and White House officials are working to put together a budget proposal that would cut an additional $20 billion in spending, the Wall Street Journal reports.

Whether or not the additional $20 billion in reductions (on top of the $10 billion Democrats have already cut in the two stopgap spending) would be enough for Republicans, however, remains to be seen: the GOP faces growing pressure from conservative and Tea Party Republicans, who have pressed for much bigger cuts, a balanced budget and a refusal to compromise - even, some say, if that results in a shutdown.

In a statement on Monday, Sen. Majority Leader Harry Reid said he was disappointed with the lack of progress so far, and charged that the division between mainstream Republicans and Tea Party members was "preventing us from reaching a responsible solution."

"I am extremely disappointed that after weeks of productive negotiations with Speaker Boehner, Tea Party Republicans are scrapping all the progress we have made and threatening to shut down the government if they do not get all of their extreme demands," Reid said. 

"The division between the Tea Party and mainstream Republicans is preventing us from reaching a responsible solution on a long-term budget that will make smart cuts while protecting American jobs, and prevented negotiations from taking place over the weekend even as the clock ticks toward a government shutdown," he continued.

In a statement to CBS News, a spokesman for House Speaker John Boehner argued that Democrats were trying to "divert attention" from their own internal divisions -- and said that their budget position was "essentially the status quo."

"The Democrats who run Washington are desperately trying to divert attention from their own divisions over cutting spending," said Boehner spokesman Michael Steel, in a statement. "Discussions with Senate Democrats and the White House over a long-term funding bill are ongoing and will continue, but the facts remain the same. The House passed a bill to fund the government while cutting spending, and - nearly 40 days later - the Senate has not."

"Senate Democrats' position is essentially the status quo, and the big-spending Washington status quo just isn't acceptable to the American people," he continued. 

Jenny Beth Martin, national coordinator for the Tea Party Patriots, told Hotsheet she took issue with Reid's characterization of the division between some conservatives on the issue.

"I would challenge that 'mainstream Republicans' and [the Tea Party Patriots] are divided," she said. "Mike Pence is mainstream Republican and we agree with him."

Mark Meckler, also of the Tea Party Patriots, added that "Perhaps we are divided with Boehner, Cantor and McCarthy...but American sentiment seems to be on the side of major budget cuts." 

Initially, Rep. Paul Ryan unveiled a 2011 budget proposal that called for about $32 billion in cuts. But after demands from Tea Party Republicans for more far-reaching reductions, that number was nearly doubled - and the GOP-led House passed a budget bill in February calling for $61 billion worth of cuts from 2010 spending levels.

Democrats rejected that figure as excessive, arguing that such deep reductions could cause lasting negative impact to the economy. (Nebraska's Ben Nelson, a moderate Democrat, said bill had "too much hate.")

Congress has since passed two temporary spending bills in order to stave off a government shutdown, but negotiations on a long-term resolution have repeatedly stalled as Republicans and Democrats fail to come to an agreement over how to resolve the $51 billion discrepancy between the two parties' proposals.

Budget talks attempting to do just that came to a halt last week, after Republicans reportedly demanded the two parties use the GOP House bill as the starting point for negotiations. According to the Journal, Democrats involved in the negotiations had expected the discussion to start at current spending levels.

Republicans, meanwhile, are reportedly preparing a 2012 budget resolution that focuses on major cuts to entitlement programs like Medicare and Medicaid.

GOP leaders are also entreating Senate Republicans to support a constitutional amendment that would require the United States to balance the federal budget - a concession which, were it to succeed, might appease some conservatives who are protesting a compromise in the resolution of the budget.

Utah Sen. Orrin Hatch told Politico on Friday that the "time has more than come" to enact such a constitutional amendment. (Hatch led a charge to pass a similar measure in 1997, but the vote failed by one vote in the Senate.)

"Our national debt is over $14 trillion, and it's clear Washington can't fix this problem on its own," he said. "We need a constitutional amendment to force Washington to live within its means."

[ralphmen]

Here are some web-sites from the Twelve Visions Party, for the Party of
your Choice! www.tvpnc.org wwwtvpofca.org No more Corruption!

[TheUndefeatedLife]

We the American People... We like sheep are either being lead to the slaughter, or being kept just healthy enough to continue to work and pay for political salaries and pensions. If the government shuts down Fri. who will you blame? We can only blame ourselves for retaining a corrupt political system. HELP! I'VE FALLEN AND I CAN'T GET UP! Wake Up America, Wake UP!

There is a way around this....We The People Need to Separate Out Corrupted Political practices. Our Vote Can Do This! Remember the Bill of Rights? I have been studying a group, The Twelve Visions Party. This is an organized group of American Citizens that are working together to remove political corruption from our current political structure. Please visit: www.tvpnc.org to study and learn about the group... Or www.twelvevisionsparty.com to watch a video. You can also read my blogs on today's political system at: www.theundefeatedlife.wordpress.com. Wake Up, Rise and Shine for Fair and Equal Representation.

[noloyalisti]

Unmitigated, unregulated capitalism become right wing fascism, that's what has happened. There is NOTHING wrong with heavily regulated capitalism or socialism, both are better than the corporate fascism we have here in America. The largest discrepancy of wealth between the rich and the poor of any civilized nation on earth. God Forgive America.

[noloyalisti]

The government is a wholly owned subsidiary of Wall Street. However, at least there are some reasonable people on the Democratic side, there are none, zero, nada on the other side. They are all surrogates for the filthy rich and the giant corporations they run.

I mean the nerve of giving unnecessary tax cuts (public theft) to the filthy rich and then complaining we have no money for the poor and the elderly. Shame on America, our collective brain is gone!

[respectTruth3377]

Neither party in my opinion is capable of fixing or doing anything. All politcians are liars. Telling the American people the truth about anything has never been the US government's priority no matter which party has been in charge. We have a President who only cares about pushing forward a socialist agenda to tear the foundations of this country apart while ignoring what the American people have to say.

[DaveMello]

I See This Stand Off Or Tom-Foolery , Going On Until After Election . They'll Just Keep Passing Emergency Two Week Spending Packages . All This Talk About Entitlements Cuts . What About Reforms In The Judicial System ? People Sitting In Prison Because They Can't Afford Their Child Support Payments , People Locked Up For Marijuana Charges .

& Then This Country Also Gives Money Hand Over Fist To Other Countries That Are Really Well To Do .

So When They Finally Cut Entitlements Back , Crime Will Rise & Last I Knew Prison Cost 5 To 7 Times The Cost Of Entitlements .

I See Riots Coming All Over This Country Soon & A Civil War Like Egypt & Libya's Country Soon , Martial Law & Russia - China Arming The Citizens Of This Country . So China Can Take Over & Re-Coop It's Loses .

Not Only That But Without The Entitlements The Economy Will Come To A Halt . The People That Did Receive Entitlements Won't Be Spending & Their Families That Care About Them Will Have To Support Them . So Retail Will End Up Collapsing ... Cutting More Jobs . Making The Situation Worse .

We Need To Prepare For A Really Deadly Trade War , That I See Happening Very Shortly .

So Let The Government Shut Down . It Got Us In This Mess .

[noloyalisti]

We have to tax the rich, they'll be fine. We cannot balance the budget on the backs of the poor and middle class while letting the millionaires and billionaires continue to steal and ruin America.

At some point we are going to have to Egypt this thing. A General Strike will bring these corporate oligarchs to their knees. Spread this idea to your family, church, political group, workers, friends and families.

[tsigili]

Neither political party is remotely capable of doing what's best fro America.

They are only interested in what's good for them.

[mick7744]

The Republicans should draft Newt Gingrish to deal with this budget crisis.

Newt has LOTS of hands-on experience with government shutdowns...

[RobAla]

To the people who advocate increasing taxes on already suffering American taxpayers and businesses, I say this:

Did you write an EXTRA big fat check to the bloated and wasteful federal government this year when you did your taxes? If not, shut up.

Most of the people wanted Americans to pay more in taxes are all about someone else paying more taxes. If you want more money going into the federal government, you certainly have the ability to voluntarily send more to it. Leave the rest of us alone.

The problem is the outrageous and irresponsible over spending by the idiots in Washington by both parties in the past. The Republicans suggest cutting $61 from this irresponsible spending that amount to less than 2%, and the Democrats go nuts and act like the world will come to an end. We have to get serious and reduce the federal government to a size and scope that the American taxpayer can afford.

[dim_public]

I would like to pay less taxes as well, and to have a smaller government. However, I am not ready to accept the fact that bloated social programs are more of a problem than the extremely bloated budget of the defense. Lets cut spending, but lets start at the correct place! If they cannot do that, then forget it, they are not being serious at all.
Rather, their plans are to kill the social programs that benefit the poor, and plan to KEEP the defense budget intact and the big contractors they like to get in bed with.
If you believe otherwise, you are just being played.