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Archive for Monday, July 18, 2011

Obama threatens to veto GOP plan to cut spending

July 18, 2011

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— Courting confrontation and compromise alike, House Republicans shrugged off President Barack Obama’s threat to veto legislation to cut federal spending by trillions of dollars on Monday while simultaneously negotiating with him over more modest steps to avert a potential government default.

The Republican bill demands deep spending reductions and congressional approval of a balanced budget amendment to the Constitution in exchange for raising the nation’s debt limit. But Obama will veto it if it reaches his desk, the White House said, asserting the legislation would “lead to severe cuts in Medicare and Social Security” and impose unrealistic limits on education spending.

In response, GOP lawmakers said they would go ahead with plans to pass the bill today.

“It’s disappointing the White House would reject this commonsense plan to rein in the debt and deficits that are hurting job creation in America,” Speaker John Boehner, R-Ohio said.

By contrast, neither the administration nor congressional officials provided substantive details on an unannounced meeting that Obama held Sunday with the two top House Republican leaders, Boehner and Majority Leader Eric Cantor of Virginia.

Obama said late Monday the two sides were “making progress.”

Several Republicans said privately the decision to vote on veto-threatened legislation is paradoxically designed to clear the way for a compromise. They said conservatives would have a chance to push their deep spending cuts through the House, and then see the measure quickly die either in the Democratic-controlled Senate or by veto.

Barring action by Congress to raise the $14.3 trillion debt limit, the Treasury will be unable to pay all the government’s bills that come due beginning on Aug. 3, two weeks from Wednesday. Administration officials, Federal Reserve Chairman Ben Bernanke and others say the result could be a default that inflicts serious harm on the economy, which is still struggling to recover from the worst recession in decades.

In a gesture underscoring the significance of the issue, Majority Leader Harry Reid, D-Nev., announced the Senate will meet each day until it is resolved, including on weekends.

The two-pronged approach pursued by the House GOP follows the collapse of a weeks-long effort to negotiate a sweeping bipartisan plan to cut into future deficits. The endeavor foundered when Obama demanded that tax increases on the wealthy and selected corporations be included alongside cuts in benefit programs, and Republicans refused.

The failure of that effort also reflects the outsized influence exerted by 87 first-term Republicans, many of them elected last fall with tea party backing.

As late as last Thursday, Republican leaders held a news conference to tout plans to vote this week on a proposed balanced budget amendment to the Constitution.

But the same senior Republicans emerged from a closed-door meeting of the rank and file on Friday to say the House would instead vote on an alternative — dubbed by its advocates as “Cut, Cap and Balance.” No date has been set for a vote on the constitutional amendment itself.

Officials said the change in course had been requested by members of the Republican Study Committee, whose members are among the most conservative in Congress.

Supporters of the measure say it would cut $111 billion from government spending in the budget year that begins on Oct 1, and $6 trillion more over the coming decade through a requirement that the budget shrink relative to the overall size of the economy.

Additionally, it would require both houses of Congress to approve a balanced budget amendment to the Constitution as a condition for an increase in the debt limit.

Both Boehner and Cantor reacted relatively mildly to the White House veto threat.

“As President Obama has not put forth a plan that can garner 218 votes in the House, I’d caution him against so hastily dismissing ‘Cut, Cap and Balance,”’ Cantor said.

Comments

Richard Heckler 2 years, 8 months ago

The GOP plan still adds $6 trillion to the deficit over 10 years. Sounds about right.

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Kim Murphree 2 years, 9 months ago

Thank you President Obama for holding the line against those who would create a country with no middle class, massive poor population, death in the special needs and elderly communities, and allow only the wealthy to continue to amass wealth. I know you've tried to compromise but they are shameless in their political protection of the wealthy--who by the way--have created NO jobs with their Bush tax cuts. Rock on Obama!

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Tensacks 2 years, 9 months ago

Obama? Balanced budget? That's a laugher.

Like merrill says, it's the "Peoples Budget". Not Obama's. Obama hasn't made a nickel in his life that didn't come out of the "Peoples Budget". Obama is a G man. Government all the way baby. "Gas the jet up. I'm going golfing"

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Centerville 2 years, 9 months ago

Obama's 'budget' went down in the Senate 98-0 and Zip hasn't made one suggestion since. And the Senate Democrats haven't produced a budget or even 'a Plan' in over two years. So we are supposed to just borrow away until the Chicoms pull the plug?

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Liberty_One 2 years, 9 months ago

Good. Veto the bill Obama. I'm proud of you. He's only vetoed two bills so far.

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beatrice 2 years, 9 months ago

This is all just a silly game for political posers. The American people are tired of it.

"At least two-thirds say congressional Republicans and Democrats put their own political interests ahead of the country's best interests. Just 7% see both sides as negotiating in good faith." http://www.usatoday.com/news/washington/2011-07-18-poll-obama-congress-debt_n.htm

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deathpenaltyliberal 2 years, 9 months ago

I have a problem with the headline, because there are no actual spending cuts in this bill.

Just more GOP lies and posturing.

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Richard Heckler 2 years, 9 months ago

Tell Congress: "Save One Trillion Dollars in Ten Years"

Petition to End Corporate Welfare and Expand Medicare

http://www.pdamerica.org/forms/sign/save-one-trillion-dollars-in-ten

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yourworstnightmare 2 years, 9 months ago

A balanced budget amendment? What is this, 1985? Get some new ideas, GOP.

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Richard Heckler 2 years, 9 months ago

With corporations routinely defaulting on their pension promises, more and more workers must rely on their individual wealth to make up the difference. The stock market collapse at the turn of the millennium wiped out much of the financial wealth of middle class Americans, and the collapse of the housing bubble has wiped out much of their remaining wealth.

Making any cuts to Social Security now, either by raising the retirement age or cutting benefits, would have a huge impact on their remaining retirement income and are not necessary to “save the system.

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Richard Heckler 2 years, 9 months ago

What's missing from this national deficit debate? JOBS JOBS JOBS AND MORE JOBS

Removing the large tax dollar subsidies to very wealthy USA corporations should be the priority.

Then apply these tax dollars to a new type of medical insurance for all that which creates a strong economic driver to promote new employment, new industry and new wealth for the nation.

This is a thrilling conversion.

If all city and state governments plus the federal government would cut corporate welfare and invest this money in IMPROVED Medicare Single Payer Insurance for ALL :

  1. many of us would be saving thousands of dollars annually

  2. big business and small business could operate for less

  3. all governments and school districts could cut operating expenses substantially

  4. employed blue and white collar workers would be healthier thus more productive

  5. all humans would have necessary healthcare 24/7

  6. in general OUR cost of living would decrease across the board

  7. New industry,small business and jobs would develop

Now a new type of medical insurance for all becomes a strong economic driver across the for the entire nations communities.

Thus our tax dollars would be invested in our local communities providing a jump start to economic growth that has been squandered as one result of corp welfare.

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Richard Heckler 2 years, 9 months ago

After spending so so many decades in Washington D.C on tax dollar payrolls republicans are sure they learned all they needed to know about OUR money and founding reckless economies. Republicans have much experience under their belts and they never quit sharing.

For openers...

  1. TABOR is Coming by Grover Norquist and Koch Bros. http://www.dollarsandsense.org/archives/2005/0705rebne.html

  2. The Reagan/Bush Savings and Loan Heist(Cost taxpayers $1.4 trillion) http://rationalrevolution0.tripod.com/war/bush_family_and_the_s.htm

  3. Wall Street Bank Fraud on Consumers under Bush/Cheney http://www.dollarsandsense.org/archives/2009/0709macewan.html

  4. Bush and Henry Paulson blew the $700 billion of bail out money? http://www.democracynow.org/2009/9/10/good_billions_after_bad_one_year

And that tax cuts do nothing to make an economy strong or produce jobs.

  1. Still A Bad Idea – Bush Tax Cuts - The ENTITLEMENT program for the wealthy at the expense of the middle class http://www.dollarsandsense.org/archives/2001/0301miller.html

In the end big debt and super duper bailouts were the results which does not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

  • Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

  • Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

• Fully 81% of the national debt was created by just these three Republican Presidents. http://www.dollarsandsense.org/archives/2010/0111orr.html

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Richard Heckler 2 years, 9 months ago

The “Peoples Budget” does everything this country needs:

* Creates good-paying jobs
* Fully maintains our social safety net
* Invests in education
* Ends our costly wars
* Closes the tax loopholes that have made offshoring jobs profitable
* Ends oil and gas subsidies that pollute our country at taxpayer expense
* Creates a national infrastructure investment bank to help us make intelligent investments for the future

The “People's Budget” represents not just common sense; it represents the will of the American people.

What the “Peoples Budget” does very specifically:

http://cpc.grijalva.house.gov/index.cfm?sectionid=70&sectiontree=5,70

http://www.npr.org/2011/04/15/135435883/the-nation-obama-should-fight-for-peoples-budget

http://www.democracynow.org/2011/4/14/while_obama_touts_compromise_with_gop

http://www.thenation.com/blog/159939/fighting-peoples-budget

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