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Sunday, July 10, 2011

Cuts to Social Security, Medicare while increasing taxes on the rich; 'No Deal' says Speaker Boehner

WASHINGTON, DC - NOVEMBER 30:  House Speaker-d...Image by Getty Images Speaker John Boehner (R-OH) and Majority Leader Eric Cantor (R-VA) say to Pres. Obama "No Deal" on increasing taxes on the rich.
House Speaker John A. Boehner (R-OH) left the so-called bi-partisan table talks on July 9th to reach debt-reduction deal. If a deal was reached, it would have avoided hitting the U.S. Debt Ceiling limit, which is scheduled to be hit on August 2nd.  

According to a Washington Post article, Speaker Boehner told Obama that their plan to “go big” and construct a compromise which save more than $4 trillion over the next ten years, was crumbling under Obama’s insistence on reducing the December 2010 passed tax cuts on the nation’s top 15% of wage earners.
 “Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes,” Boehner said in a statement released less than a day prior to meetings with White House meeting was scheduled to begin.
In a game of “shifting the goalposts” Boehner noted on Saturday, his desire to return back to prior negotiations talks on the debt ceiling crisis back in June between Majority Leader Eric Cantor (D-VA) and Vice President Joe Biden. Boehner forgot to mention in his statement that Cantor walked out on the meeting for compromise, in the middle of the discussions, due to a requirement to raise taxes on the wealthy.
“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,” he stated to the Washington Post.
The only partial deal remaining on the table is trying to save $2.4 trillion over 10 years, which was a previous discussion topic between Biden and a bi-partisan group of lawmakers. The specific details of this type of agreement are still incomplete as House Majority Leader Cantor (R-VA) walked out of these negotiations, citing a refusal to increase taxes on the top 15% of wage earners.

President Barack Obama and Speaker Boehner’s proposal would have required both parties to take a make bold moves to solve the nations’ debt crisis. In details of the Obama/Boehner deal, Democrats would have received $800 billion in new tax revenue. Republicans, in turn would gain sharp cuts to Medicare and Social Security, popular safety net programs that congressional Democrats have vowed to protect.

Speaker Boehner refused to allow such a compromise to take place on his behalf. He cited instead Republican aides could not reach agreement with the White House to permit the Bush-era tax cuts for the nation’s wealthiest households to expire in 2013, by lawmakers undertaking a keen rewrite of the nations’ tax code.

Treasury Secretary Tim Geithner Sunday, July 7th on CBS' "Face the Nation", stated that regardless of Speaker Boehner walk out on the talks, President Obama is still willing form a deal seeking cuts Social Security and Medicare programs.
"What the president wants to do, and he's bringing the leadership to the White House this evening, to keep at it, he wants to do the largest possible deal that's going to do the most for the economy," Geithner cited to "Face the Nation" host Bob Schieffer.  
"And it's very hard politically, it's going to take some movement on both sides for that to happen. The president has made it clear he's willing to do some very difficult political things for him, for his party, but the Republicans are going to have to do some things too," he stated.
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