White House reportedly offers cuts to Medicaid, Medicare, in deficit talks
CBS
Cutting short their Fourth of July recess, senators returned to Washington on Tuesday in an effort to reach a deal on reducing the deficit, without which Republicans have said they will not vote for an increase in the debt ceiling.
And while CBS News senior White House correspondent Bill Plante reports that there are currently no talks scheduled between congressional Republicans and the White House to discuss the deal, negotiators appear to be working on a proposal that would cut funds from Medicare and Medicaid without majorly overhauling them or imposing direct new costs on beneficiaries.
The Times says Republicans and White House negotiators "had reached substantial agreement on many cuts in the growth of Medicare... and Medicaid" before the talks imploded 12 days ago, and that those proposed cuts will still be on the table during discussions this week.
"Negotiators said they were seriously considering cuts in Medicare payments to hospitals for uncollectible patient debt and the training of doctors; steps to eliminate Medicare 'overpayments' to nursing homes; a reduction in the federal share of some Medicaid spending; and new restrictions on states' ability to finance Medicaid by imposing taxes on hospitals and other health care providers," according to the Times.
However, that deal is apparently contingent on Republicans agreeing to increases in tax revenues - a move that the GOP has staunchly opposed since the beginning of the talks, and which has by most accounts proved the cause of the current standstill in negotiations.
Treasury Secretary Timothy Geithner has said the United States has until August 2 to raise its statutory limit on how much money the United States can borrow. The U.S. reached its $14.3 debt limit in May, but the Treasury Department is using what it has described as "extraordinary" accounting measures to run the government in the interim. White House officials have said recently that Congress needs to reach a deal by July 22 in order to meet the August deadline. Some Republicans, however, have questioned that deadline.
Republicans and Democrats alike have warned against pushing up against the July deadline.
"We are running up against this deadline," Sen. John Cornyn, R-Tex., said on "Fox News Sunday." "And they're going to try to present it as a fait accompli; nobody is going to have time to read it or consider the implications of it, and it's going to say you have to pass it or the economy is going down the tubes. That's just irresponsible."
On CBS' "Face the Nation" on Sunday, Mass. Gov. Deval Patrick argued that "the hard right" in particular was acting irresponsibly in the debt limit talks, and that their playing political "brinksmanship" with the economy was inappropriate.
"The full and faith credit of the most important and the largest and most prosperous economy in the world is important," Patrick told CBS News Chief Washington Correspondent Bob Schieffer. "And the notion [of] playing brinksmanship with it, as some in the hard right seem to want to do in Washington, is irresponsible."
Still, neither side has yet proved willing to cave on the issue of tax hikes.
According to the Hill, Sen. Minority Leader Mitch McConnell, R-Ky., reached out to President Obama on Tuesday to "get together and talk about what's actually possible."
McConnell made a similar invitation last week, which White House press secretary Jay Carney apparently declined on the basis that the GOP definition of "what's possible" failed to include tax increases.
"We know that position," Carney said on Thursday during his press briefing. "That's not a conversation worth having."
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These narrow sighted Liberals who think when you make $2100 a month, and spend $3900 a month, that the problem is you need to make more money, not spend less. And the only solution they have is to mug your boss for $350 and pray you don't lose your job. (replace thousands with trillions and month with year and these are actual budgetary numbers).
One other key thing you don't seem to understand, simpleconservative, is that if the US defaults on its debts by not raising the debt limit, not only will we see immediate and drastic impacts on all Americans from the rise in interest rates and the shutdown of services, there is an even bigger impact - default would be the final straw to have the world move away from the US Dollar as a reference currency. China, Russia and Brazil have been working to move away from the dollar for years, and the default would give them the necessary leverage to make the change.
Every currency that trades freely in the world is valued against the US dollar, the reference currency. If that changes, then our dollars will float and be valued against some other reference currency. And that will almost immediately mean our currency will be devalued, increasing prices on EVERY FOREIGN IMPORT, and decreasing our prices for things we sell outside the US. The cumulative impact of higher interest rates and a devalued currency will be catastrophic.
And once this change happens, reversing it will be extremely difficult and will take many years if it can be done at all - in the meantime, we'll all suffer. If you think the current economy is rough, try thinking about everything that you buy going up 10% to 20% in price while your wages fall about the same amount.
If that's what you want, vote Republican. If not, vote against them. I can't blanketly recommend voting Democrat either because they have just as many problems (although different ones) but if our only choice is economic holocaust or putting the Democrats back into the majority in 2012, I'd rather spank the Republicans while working towards a REAL third option for 2014 and beyond.
Poll Date Sample For/Favor Against/Oppose Spread
RCP Average 5/8 - 7/2 -- 38.6 50.4 Against/Oppose +11.8
Rasmussen Reports* 7/2 - 7/2 1000 LV 39 53 Against/Oppose +14
Associated Press/GfK 6/16 - 6/20 1001 A 36 46 Against/Oppose +10
CNN/Opinion Research 6/3 - 6/7 1015 A 39 56 Against/Oppose +17
CBS News 6/3 - 6/7 1024 A 37 48 Against/Oppose +11
Politico/GWU/Battleground* 5/8 - 5/12 1000 LV 42 49 Against/Oppose +7
The answer is that President Obama would have to admit his crown jewel achievement amounts to crap. He will hang on this this garbage of a health care law with a political death grip, regardless of the wishes of the majority of Americans.
How many Americans were asked in this poll you are using, I would guess between 800 to 1200.
My point is Polls are used as a toll to islead the viewer and shape their opinion to whatever the media wants you to see.
If they go to far it may be the end of the country and then it will not matter who gets the blame. Its very strange that the GOP will risk the economic distruction of the country for short term gain. What good will it do to win the 2012 elections if the country ceases to exsit in 2013? They will have reached the top of the ladder with the ladder having no support. They will find the trip down to be long and most unenjoyable. The main concern I have is that they looks at the middle class being distroyed as mere collateral damage.
It does not seem to occur to them that there will be no country without a middle class.
And see whatata2d's comments above as well for the complete counter to your comments.
Yes, the top 1% paid 38% of the personal income taxes, which is not unfair since they own more than 70% of all the wealth, and historically the economy has expanded faster when tax rate son the rich were HIGH, not when they are low. Check out the facts if you are honest enough to do it.
And what Republican will agree to raising taxes?