July 9, 2011 9:23 PM

Speaker Boehner abandons comprehensive debt deal

By
Joshua Norman
Topics
Economy

House Speaker John Boehner of Ohio listens at left as President Barack Obama speaks during a meeting with Congressional leadership to discuss the debt, Thursday, July 7, 2011, in the Cabinet Room of the White House in Washington.

(Credit: AP Photo)

The White House and Republican leaders had been negotiating recently over a comprehensive deal that would have produced $4 trillion in savings, hoping to avoid any possibility of defaulting on the nation's debt ahead of an Aug. 2 deadline to raise the debt ceiling.

On Saturday night, House Speaker John Boehner abandoned the deal, saying a mid-size package of reforms that do not include any kind of increase in taxes on anyone is the only politically viable solution, The Washington Post reports.

The White House responded by releasing a statement decrying the move, saying that "congressional leaders...must reject the politics of least resistance and take on this critical challenge."

In a statement, Boehner said: "Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes. I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase."

In response, White House Communications Director Dan Pfeiffer said: "We cannot ask the middle-class and seniors to bear all the burden of higher costs and budget cuts. We need a balanced approach that asks the very wealthiest and special interests to pay their fair share as well. Both parties have made real progress thus far, and to back off now will not only fail to solve our fiscal challenge, it will confirm the cynicism people have about politics in Washington."

The move by Boehner means the negotiations will likely fall back on the smaller reform package that Vice President Joe Biden and GOP leaders had been negotiating, which would amount to as much as $2.4 trillion in savings, the Post reports. That package includes only cuts to federal agency budgets and modest reforms to entitlement programs like Social Security and Medicaid.

If approved by all parties, the smaller savings plan would allow for Congress to approve an extension of the federal debt ceiling into the spring of 2013, the Post reports.

House Majority Leader Eric Cantor had indicated the GOP would not give in on any tax adjustments on Friday, saying: "It just does not make sense for Americans to suffer under higher taxes in an economy like this. There is no way the House of Representatives will support a tax increase."

Democrats had been pushing for alternative forms of tax hikes that would close loopholes creating tax breaks for certain kinds of industries like corporate jets, as well as raising taxes on only the highest-earning Americans.

President Obama will be hosting an important meeting with political leaders on debt negotiations on Sunday.


  • Joshua Norman

    Joshua Norman is an associate editor at CBSNews.com.

Add a Comment See all 339 Comments
by surubaid July 13, 2011 2:18 PM EDT
I'm not so sure those politicians really listen to one another when tney aren't in the party. I truly believe that those who have been on Capitol Hill for more than 3 terms have lost touch with the real cruxt of the American public when it comes to jobs and facing simple day to day issues that are drastically affected by actions taken by politicians. It's easy to talk about what they think "the american people want" in comparison to actually have asked what we want and then take the responses they receive and work with them. After one term in office they receive a pension. Where else in America can an individual qualify for a pension after just 4 years of employment? They have a very well setup healthcare plan that they pay nothing into. Even some of the best paying jobs in America don't have no pay healthcare plans. That would be a wonderful luxury. One suggestion that would work well towards balancing the budget would be to take by the humanitarian and military aid given to some of the more undeserving countries. Those that have done atrociously inhumane acts towards their countrymen, suppressed the ability to assert basic human rights, and or attacked their neighboring countries for no justifiable reasons are ones I would include in this lot. No one is perfect. All of these individuals have to be shown that they can be as easily removed as they were brought in. Congress and the Senate need to be held to two consecutive terms just like the President and Vice President. They need to get out and face the world just like the rest of America does. Then they will have a better understanding of what politicians are really doing to the American public.
Reply to this comment
by leftyintexas July 11, 2011 7:01 PM EDT
Boehner is a politicial wimp who dances to the looney tunes played by the tea baggers,or as I like to call them... The American Taliban.
Reply to this comment
by NotPartyControlled July 11, 2011 3:36 PM EDT
It's a shame that neither side can compromize. Stop the media blitz and cut spending. Stop politicing and cut all non-american aid and focus on the United States.
Reply to this comment
by noloyalisti July 11, 2011 2:41 PM EDT
Lets' call this anti-Constitution knucklehead who wants America to fail Exxon Boner or Halliburton Boner of GE Boner or something. He wants to void the agreement (contract) for WHAT THE GOVERNMENT HAS ALREADY AGREED TO DO. This must be alien inbred behavior. How else would you explain this level of demonic evil?
Reply to this comment
by bilrobi1 July 11, 2011 1:07 PM EDT
I clearly don't fall into the tax bracket of the privileged . I'm middle class and have always payed my taxes. These are hard economic times and my country needs help. So not only do I think the corporation and the rich need to pay up but, I'm willing to pay a little more in taxes over a defined period of time to help my country.
Reply to this comment
by netjunkie1 July 11, 2011 1:53 PM EDT
I am also middle class, however, the value of my home has dropped to 1/2 it was before the great recession.
I don't believe the middle class should suffer any of the tax burden
The richest taxpayers have evaded paying, this is why our government is in the red.
The government is not run by and for the people of America, it is run by the elite, corporates, and lawyers.
It is called a plutocracy which an internal Citi. memo clearly admitted. It also said the end is no where in sight. Along with their only fear...the power of the vote.
by realist51 July 11, 2011 12:45 PM EDT
The Title should read " THE REPUBLICANT'S ABANDON 90% OF AMERICANS FOR THE TOP 10% OF AMERICANS!
Reply to this comment
by williamjd2011 July 11, 2011 12:59 AM EDT
speaker boehner is a guy who comes from a poor family and he knows that the issues his party is forcing him to stand for are wrong. you can see it in his face during the talks. He looks like a little kid that just got caught with his hand in the cookie jar.
Reply to this comment
by simpleconservative July 11, 2011 12:13 AM EDT
The simple reality is that the government Ponzi schemes are about to deconstruct. Many Americans believe with childlike simplicity of thought, that a politician or a group of politicians can guarantee a free ride. The number of Americans pulling the wagon compared to the number riding in the wagon has reached critical mass and without serious reforms, that wagon is going over the cliff. The interesting thing is that the productive class will not be riding in the wagon when this happens and as self sufficient people will survive the crash. The folks who will be hurt are the ones insisting that nothing needs to be done to correct the course charted by a liberal ship of fools!
Reply to this comment
by Americants July 10, 2011 11:52 PM EDT
The future of this country will ultimately be failure. When you consider it, America was more of a failure than the Roman Empire. The Roman Empire lasted for a thousand + years and America will fail in about 235 - 240 years.

Reasons for the Roman Empire failure:

1. bad emperors
2. increasing civilization of the people of the empire (which means weaker soldiers)
3. Roman disunity, endless infighting
4. economic decline
5. plagues
6. mass migration
7. and the settlement of the Visigoths in Moesia

Sounds eerily similar to the present AmeRoman Empire. So far we're 5 for 7. Prepare for the collapse denizens, it's coming whether you'd like to admit it or not. I'm sure the Roman Empire was full of optimists and naysayers, we all know what happened in the end.

Better get your passports and plane tickets ready.
Reply to this comment
by netjunkie1 July 11, 2011 2:02 PM EDT
I wonder which five do you refer to?
by actornaught July 10, 2011 9:09 PM EDT
The unemployment problem rests squarely on republicans. They've gotten ALL their tax cuts for the generic wealthy. According to their yappin, jobs should be falling like rain.

Supply side is a con. A scam. Even Reagan's Stockman abandoned long ago.

And still the foxholes refuse to recognize out loud such obvious facts.
Reply to this comment
See all 339 Comments
.
Latest CBS News Headlines Popular CBS News Stories
on Facebook Most Discussed Stories
on CBS News

Follow Political Hotsheet

Scroll Left
Scroll Right More »
CBS News on Facebook
  • Building You a Better Morning

  • CBS This Morning

    "CBS This Morning," anchored by Charlie Rose, Gayle King and Erica Hill, airs weekdays from 7 to 9 a.m. ET and at the same time in other time zones.
    Learn more...