Budget Talks: Nothing Off The Table

03 July 2011 |permalink | email article

It’s far from clear, with both Democrats and Republicans dug in, how any compromise can be reached before Aug. 2 to avoid defaulting on the government’s financial obligations, with the debt limit now at $14.3 trillion, for the first time in the nation’s history. To his credit President George W. Bush, Obama’s predecessor, understood the need for urgent action on such budget talks and did the right thing.

Here’s part of what Obama said on Saturday:

“Now, it would be nice if we could keep every tax break, but we can’t afford them. Because if we choose to keep those tax breaks for millionaires and billionaires, or for hedge fund managers and corporate jet owners, or for oil and gas companies pulling in huge profits without our help – then we’ll have to make even steeper cuts somewhere else.”

Sen. Dan Coats of Indiana delivered the Republicans’ weekly response which predictably attacked Obama on the economy and renewed their opposition to any tax increases.

“The president and Democrats in Congress must recognize that their game plan is not working. It’s time to acknowledge that more government and higher taxes is not the answer to our problem. It’s time for bold action and a new plan to address the current crisis.”

Republicans, fixated on deficit reduction and adamant that tax breaks for the very rich and huge corporate profits are off the table – with increased revenue irrelevant – sets the stage for a messy showdown over the next three weeks.

If there’s any good news it’s that the Senate canceled its plans to take a Fourth of July recess this week to order to stay in Washington and focus on the problem. Time to bring in the adults and banish the clowns.

 

 

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