Minggu, 10 Juli 2011

Obama Focuses On GOP Agreement On The Maximum Debt

WASHINGTON - President Obama on Sunday tried to revive the potential of sweeping budget agreement to reduce the deficit and fix dangerous for the economy, but Republicans in Congress have continued to balk, emphasizing the most modest to avoid default, the national debt.

Obama met with leaders of both parties at the White House Republicans bluntly challenged one day after President John A. Boehner pulled back from a far-reaching agreement to save as much as U.S. $ 4 trillion over 10 years, officials informed the negotiations said. The meeting ended after an hour and 15 minutes with little progress, but both sides agreed to speak again on Monday and every day after that until a deal is done.

White House officials said Mr. Obama was still determined to pursue the most aggressive package possible - one that would require new revenues and cuts in Medicare and other benefit programs - but he stands firm opposition of Republicans and growing concern among Democrats.

"Congress must act," Treasury Secretary Timothy F. Geithner said on the CBS News program "Face the Nation". "If they do not act, then we face catastrophic damage the U.S. economy, and leadership, to their credit, and I think Republicans and Democrats understand that. "

Geithner, noting that the Treasury issues 80 million checks per month, including social services to 55 million Americans, warned that failure to reach an agreement within the next two weeks could be disastrous. Produced a version of the lecture he gave to lawmakers at the White House last week, Geithner said a standard would derail financial markets, raising interest rates, and derail economic recovery.

Obama, who arrived at Camp David, shortly before the session Sunday night, seems to have increased by at least one respect: the legislators from both parties pledged not to leave the U.S. debt default. This is what the Treasury Department said would happen after August 2, when the government loses its power to borrow.

"No one is talking about raising the debt ceiling, I have not heard that discussed by anyone," Minority Leader Mitch McConnell of Kentucky Senate, said on "Fox News Sunday" and added that it had an "emergency plan" unspecified increase limit if the negotiations collapsed.

Like Obama, sitting with Mr McConnell and other leaders, shortly after 6:00 p.m. on Sunday with the men wearing open-necked shirts and blazers, she was asked if he could get a done deal in 10 days, leaving sufficient time to prepare and pass legislation before August 2.

"We need," he said.

The problem for Obama is that Republicans are not budge on their demands that any agreement does not include any tax increases. The administration also needs to Democratic lawmakers, many of them will not vote for a package composed entirely of cuts, especially for popular programs.

In a statement after the meeting, said McConnell spokesman Don Stewart, "It is curious that the president and his party continue to insist on massive tax increases in the middle of a job crisis ".

House Minority Leader Nancy Pelosi, said she favored a lot, but he "should not affect the middle class or economic growth. It must also protect the beneficiaries of Medicare and Social Security. "

It was not clear that the president would be able to reconcile these positions, especially after Mr. Boehner put a bottom bar of an agreement that both sides can find acceptable. In a statement issued after the meeting, Mr. Boehner said leaders should strive to offer a mid-range would be based on spending cuts identified in the interviews conducted by Vice President Joseph R. Biden Jr. This agreement could produce savings of 2 billion to $ 3 billion trillion over a decade.

Mr. Boehner appeared weak at the meeting, officials said, leaving the House majority leader, Eric Cantor of Virginia, most of the conversation. Mr. Cantor reiterated their opposition to a larger operation.

Privately, some members of Congress expressed regret at the decision of Mr. Boehner, Saturday, at the foot of an agreement they said was a rare opportunity for Republicans and Democrats for a radical restructuring of the Finance State, to rewrite the tax code and resolve longstanding problems with Medicare and Medicaid.

In the end, officials have said that the report on the negotiations, the ideological differences on tax reform locked in a contract greater. Mr. Boehner, said, was open to leave the Bush-era tax cuts expire for wealthy people, while keeping the cuts to middle-income wage earners. But Democrats informed about the discussions, said that a condition for rewriting the tax laws by the end of this year, so the loss would be offset by cuts in the standard rate.

White House officials said, was willing to set a deadline of a tax reform. But she rejected Mr. Boehner formal grounds that it would impose too heavy a burden on the middle class while protecting the rich.

A first ranking Republican in the negotiations, Boehner said "just talk about new revenues if it were economic growth and tax reform rather than raising taxes." And he insisted on a "trigger" that started spending cuts and other measures if the tax changes do not apply before the end of 2011.

Mr. Boehner and the White House, said Democratic officials also disagree on the extent of reductions in benefit programs, with the speaker calling for deeper cuts in Medicare and Medicaid programs that the government was willing to accept.

Obama is pushing for a larger operation on the argument that, paradoxically, easier for Democrats and Republicans to sell to their bases, as it might stand as a historic effort to begin to undo years of budget deficits.

As Mr. Geithner said "Face the Nation", "It is clear that it is easier to try to do less."

Even the $ 2 trillion to face several significant obstacles, officials briefed on the negotiations said. During several rounds of negotiations led by Mr. Biden, identified spending cuts and lower interest payments that could result from a reduction of debt, which would have saved about $ 1.8 trillion over 10 years. But officials warned that there is never treated.

Republicans, led by Mr. Cantor, rejected proposals to fill gaps or other tax breaks for owners of business jets, the oil and gas companies, and hedge funds. He said these measures, which would have raised about $ 130 billion, amount to tax increases.

The Administration has also proposed to limit the reductions in high wages, which the White House says would raise $ 290 billion. But there is little support for the Congress. And if you do not have a lot of fiscal measures, say the leaders are not able to fence enough Democratic votes to pass them.

Geithner warnings about the main issues were echoed by Christine Lagarde, the newly appointed CEO of the International Monetary Fund. Speech on "This Week" on ABC, Ms. Lagarde said that the failure by the United States would cause interest hikes ", stock markets take a huge hit, and the ugly real consequences, not just the United States, but throughout the global economy. "


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