Welcome to the Newschoolers forums! You may read the forums as a guest, however you must be a registered member to post. Register to become a member today!
House of Representatives Speaker John Boehner broke off talks with President Barack Obama on a deal to cut spending and avert a government default Friday night. He said he would begin talks instead with Senate leaders.
“In the end, we couldn't connect,” Mr. Boehner said in a letter circulated to the Republican rank and file.
MORE RELATED TO THIS STORY
EDITORS' BLOG
Watchlist goes mobile
Mr. Obama then asked bipartisan congressional leaders to meet at the White House on Saturday morning to discuss the way forward on a deal to boost the nation's borrowing authority.
Mr. Obama says he will meet with Mr. Boehner, Senate Republican leader Mitch McConnell, House Democratic leader Nancy Pelosi and Senate Democratic leader Harry Reid. Mr. Obama said time is running out to reach a deal by Aug. 2 to avert a default.
Mr. Boehner's announcement marked an unexpected turn in an increasingly desperate attempt by a government divided between the two political parties to beat an Aug. 2 default deadline.
Earlier in the day, lawmakers said negotiations between Mr. Obama and the top Republican in Congress were not close to producing a debt reduction deal to avert a looming unprecedented U.S. default.
While details were emerging about a possible $3-trillion plan, Mr. Boehner said talks with the White House had so far failed to forge an agreement to cut spending and raise America’s debt limit by Aug. 2.
“There was no agreement, publicly, privately. Never an agreement and frankly not close to an agreement,” Mr. Boehner told reporters. “And so, I would just suggest it is going to be a hot weekend here in Washington D.C.”
Negotiations between Republicans and the Democratic White House toward a deal to raise the $14.3-trillion limit on America’s borrowing are at a critical phase, with less than two weeks before the world’s biggest economy runs out of money to pay its bills.
Republicans have insisted the White House agree to deep spending cuts aimed at long-term deficit reduction before they sign on to any increase in America’s debt burden. But talks have whipsawed and stalled over raising tax revenue, which Democrats insist must be a part of any spending cut deal.
Mr. Obama and Mr. Boehner took discussions on a so-called “grand bargain” behind closed doors this week. The plan taking shape there could include up to $3-trillion in spending cuts but might leave tax reform for later, congressional aides said.
Senior Democrats in Congress, who have been kept out of the talks, were furious Friday that Mr. Obama might concede to a deal with no new tax revenue, but with deep spending cuts to social programs.
Senate Democratic leader Harry Reid warned Mr. Obama to be careful what he agrees with Mr. Boehner.
“I say to both the president and to the speaker here on the Senate floor, representing my Democrats, and I’m confident many Republicans: Be very careful,” Mr. Reid said. “Show a lot of caution as this negotiation goes forward because any arrangement must be fair to all America, not just the wealthy.”
The White House initially set a July 22 target for a deal that would leave enough time to get it through the legislative process. But it has backed off that timeframe in recent days with both sides still far apart on the issues.
Confusion has grown amid a patchwork of proposals aimed at finding what a senior Democratic aide called the “magic formula” for resolving the crisis.
On Friday, Senate Democrats, as expected, blocked one of those proposals -- a Republican plan to reduce deficits by $5.8-trillion over 10 years, far more than Mr. Obama and congressional leaders are discussing in private negotiations. House Republicans had insisted on a Senate vote before they consider other options.
