Dem source: Obama working on $3T debt deal

Mark Wilson/Getty Images

Updated at 5:15 p.m. ET

President Obama is working on a deal to raise the debt ceiling with House Speaker John Boehner that would make $3 trillion in cuts over 10 years but include no new government revenues, a Democratic congressional aide told CBS News today.

Mr. Obama conveyed this to congressional leaders last night, the aide told CBS News Senior Political Producer Jill Jackson.

A White House official tells CBS News that there is no such deal. The official reiterated the point made by White House Press Secretary Jay Carney, who said earlier today, "There is no deal, we are not close to a deal."

Boehner has also denied that they are close to a deal, and Republican congressional aides are also denying it.

According to the Democratic aide, the plan in the works would include some promise of tax reform in 2012 and would set a target for when that needs to be done. If the target were not met, then the Bush tax cuts would expire for those making over $250,000 per year.

House Speaker John Boehner said in a press conference Thursday that "any deal is going to have to involve some compromise." Yet if the plan for revenue increases is to simply let the Bush tax cuts for the wealthy expire, Mr. Obama wouldn't be asking Republicans for anything new.

When Mr. Obama extended the Bush tax cuts in December of 2010, he promised to let the tax cuts for the wealthy expire. "In the long run, we simply can't afford them," he said during a press conference on Dec. 7, 2010. "And when they expire in two years, I will fight to end them, just as, I suspect, the Republican Party may fight to end the middle-class tax cuts that I champion and that they've opposed."

Democratic leaders have not seen the actual details of the plan, according to the aide, but the understanding is that the $3 trillion in cuts would include changes to the Social Security cost-of-living formula and changes to Medicare.

Boehner and the White House have said that nothing is agreed to until everything is agreed to -- and thus may be unwilling to reveal the details of any emerging deal. Furthermore, acknowledging a deal would put Boehner in a tough position, since the Senate is still debating the House-passed "cut, cap and balance plan" -- the GOP plan to make raising the debt ceiling contingent upon passing a balanced budget amendment. The "cut, cap and balance" plan has no chance in the Senate, but Boehner does not want to appear as if he's undercutting the House Republican caucus by already agreeing to another deal.

The Democrats' liberal base, already angered over the president's willingness to include cuts to Social Security and Medicare in the deal, expressed outrage over the description of this latest potential deal.

"The Democratic base did not work night and day to elect Democrats so that they could cave to Tea Party extremists who are intent on gutting the social safety net millions of us fought to establish and protect," Justin Ruben, executive director of the liberal grassroots group MoveOn.org, said in a statement. "Leaders Pelosi and Reid have been clear that a deal that includes no revenues, or that cuts Social Security and Medicare benefits, cannot get the votes of their respective caucuses. Democratic Members of Congress must keep up this strong stance."

Democratic leaders -- Senate Majority Leader Harry Reid, House Democratic Leader Nancy Pelosi, Sen. Dick Durbin and Rep. Steny Hoyer -- are meeting with the president at the White House at 5:30 p.m., according to a White House official.

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War of words over the debt

[Starburst9]

I thought they would know you get jobs and the revenue would increase no they campaigned on getting jobs and tell me what they have done to help anyone in this country,education is shot all to you know where, they have the nerve to earn so much salary FOR WHAT I mean both sides are not worth anything they know how to fight to be reelected but they forgot what they were elected to do IMPEACH all I say

[spike54321]

Three trillion over 10 years- big whoopie. If spending contimues at this years levels, that means we are still accumulating debt at a minimum 1.1 trillion a year. Yes, that will really help the problem. What don't these people understand about basic math? What don't they understand about what this level of spending will do to this country and it's citizens. They keep bringing social security into the picture also. THEY stole the money. Let THEM get it back and give it to it's rightful owners the people. They act as if it was their money. To boot they taxed you to get the money, then they tax you again when they hand out the check. The level of spending and debt has already crashed the dollar by 20% in the last year alone. The poor and middle class bear the brunt of this as their dollars go 20% less far, than they did just a year ago These chump change spending reduction proposals are ludicrous. They are sending the public to their economic death. And jobs??? Google steve Wynn or the co founder of Home depot to find out what the government is doing to kill the very businesses that coulkd be providing jobs. Unless they are a first term senator or congressman, clean the darn place out in the 2012 elections. It's time to take out the garbage that caused this situation - all of it, party be damned!

[brnfream]

You had better not show any cuts to SS and Medicare until you have shown us about fifteen or twenty other cuts you have made. No promises, we know where those lead. We want the cuts now!! No debt limit increase. No more taxes. Live within your means, as they are.
Cut government by 75%. We don't need you and we don't want you. Except to defend our country, which you are not doing very well. You pay more attention to the gays whinning then you do to all of the citizens safety. It is time to be a very small, efficient, government, not meddling in private business'.

[WeHappyFew]

Being totally aware this puts me in the ranks of crazed conspiracy theorist I'm beginning to believe that Obama is a Republican stooge brought in to annihilate Hillary Clinton's shoo in presidential victory 2008.

Even though healthcare reform was her raison d'etre, I guarantee the first thing she would have done with the Democrat mandate was expire the Bush tax cuts, raising tax on the wealthiest and seriously cutting ALL spending. Which is what the American people actually wanted.

Obama, you are no Clinton.

Chelsea 2024.

[The Invisible Hand]

I wouldn't count out, Sec of the State Clinton from running for POTUS again. If she were to run, her VP choice might beat a Pres Obama/ VP Biden ticket and really mix things up for the next election!

[WeHappyFew]

EFF, EFF, ESS!!!!!!!!!!!!!!

Next press briefing, Dubya's going to rip off the rubber bi-racial mask an shout "TA DAH!!!!!!"

[The Invisible Hand]

Politics should not be a zero sum game where there is only one winner and one looser. Politicians need to understand Americans, humans, will always have differing points of view on things. It is impossible to think for one minute you can pass legislation and please everyone.

What is fair, right and what is best for the American People and our National Interests should always take priority; not some pledge. However, it is important to know when running for any office what "stance - principle" a politician has on topics.

It is just as important for a politician to be able to clearly say where they might have made a mistake because at the time they made promises, they didn't know the whole complexity of the issue a certain topic may have had. They need to give honest feedback and reasons for diverting from a "stance - principle" if they choose to go against their "promises made".

I do not believe for one minute most Americans would approve of a breast implant for an exotic dancer, to enhance her body for business, should be considered a business expense tax deduction (aka loop hole). Or,on that same idea, how about a dentist who purchases a better digital x-ray machine to enhance his business? Should that be considered a business expense and get a tax deduction? Where do you draw the line?

On the same hand I don't think for one minute that most Americans would consider using a private jet for business as a tax deduction (aka loop hole); the reason giving most of the time is why they don't just buy a plane ticket like the rest of us. OK, but that is also a business expense and consider a tax deduction (aka loop hole) and is not as efficient and takes up more time (time is money in business).

What some Americans don't realize is there are reasons they are loop holes; my point is, be careful to those in favor of the loop hole argument. It is not as easy as it appears. The effect of eliminating one may have a trickledown effect that also hurts the individual or small business.

The only way I have seen a solution to this unfair income tax system we use is by the fair tax proposal. Please look into yourselves. For those who fear that it puts a burden on the poor, please look at it again and see all the "safe guards" in the idea that addresses this concern.

[The Invisible Hand]

seenoland,

Thanks for the supporting post, you obviously missed the whole point of my post. Please read again and you will see.
------------------
You said:

"OK, as you have never owned a business here's how it works..."

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And then went on and supported my whole post of why there are reasons for tax deductions (aka loop holes) in business! Hence the statement "time is money in business" and justifying on why a company/private jet is a tax deduction when used for work.

[The Invisible Hand]

Some pretty good comments on here.

The veryfirst thing I would lke to see is the Senate vote for or against the "Deal" that has already passed the House. I dont care if is passes or not. It would be nice to know where all my State elected officials stand.

I would offer this. I think America is tired of "elected officials" talking about a "deal". What I see and read on here is dont tell me about a "deal"... show me the "deal" and then we can talk after we the people read and understand the "deal".

I dont want an executive summary. I want the whole "deal" to be put out there so all elected officials can have a crack at understanding it.

I dont want my elected officials to be ducks in a row and just follow party lines. I would like my elected officials to ask for the feedback, from "voters" on how they would like to see "them" vote on this "deal".

But first we must see and read the "deal" before we could make an educated voice to our State Elected Officials to vote in favor or not in favor for the mystery "deal", that only a few know about, to pass or fail. I do not expect my State Elected Officials to blindly follow. I expect them to be responsible and inform the voters and then get the feedback from them on how to vote. They represent us as We the people, sometimes they might need reminded of this fact.

[The Invisible Hand]

Just read another story about the NFL lockout that reinforces this idea:

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From the Story on CBS...

Players didn't vote Thursday, saying they had not seen the full proposal. "How can we hold a vote on something that we haven't seen the finished product of?" Buffalo Bills player rep George Wilson said

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Exactly what voters are saying about these mystery "deals" behind close doors. The "________" is working on a "deal" that will do "_______" to taxes and "_________" to cuts.

The only "deal" seen and voted on was the one that just passed the House. Until it is seen, how do you epect anyone to be infavor of it or not in favor of it?

[1stlttightwad]

Agree! What reason on earth would the Senate majority leader state that it won't even come up for a vote when 66% of the American people agree with the house. Looks like the senate is afraid of the vote outcome. Bring it to a da#n vote, up or down. How dare he make any presumption about the bill? By his own hand he is thwarting the very reason our congressmen are sent to DC, to vote the will of the people. His actions are shameful in the least.

[qyeteye]

What happened to 3 trillion in cuts, 1 trillion in revenues. Thats right, Republicans voted against it instead of restoring some balance as we had with a Clinton Budget.

Tea Party and Republicans now risk everyone paying higher interest rates and more economic threats so the top 2% can conserve their temporary 3% Bush tax cuts.

You act not for the interest of the nation as you claim, but for the interest of who can afford to buy your party.

You helped sale this nation out. 80% of the American People want a restoration of the balance we once had that led to a budget surplus. Instead, you stand in the way on some pledge that dooms the nation to all pay more.

[NinthSt78]

Once again, I think the President has been more reasonable, honest, and sincere than the voices of opposition. Savings Bonds with an good rate of interest can that lemon into lemonade.

[qyeteye]

Great Depression - Savings & Loan Debacle - Great Recession
GOP authored policies & positions
GOP outcomes

Next up,
Debt Ceiling

[qyeteye]

bmallen3 - wrong?

Who packed an Omnibus Bill with the Commodities Moderniztion Act near the middle of the night near Christmas eve claiming how it was going to unleash the economy of the nation. This was led by Phill Gramm-R, supported by Dick Armey-R and junior Congressman John Boehner-R.


As to owning a home... Bush-R was a most vocal leader - look up speeches on Bush & Home Ownership. You think he acted alone in his party or as a supported front man.

Please - your views reflect not having been out and about much - not realistic to leave the most responsible, should i say irresponsible of the 2 parties out of all blame.

Past time to get real.