Obama still betting on big deal
WASHINGTON (AP) – A fiscal deadline all but blown, President Barack Obama says he once again wants to seek a big fiscal deal that would raise taxes and trim billions from expensive and ever growing entitlement programs. But with automatic federal spending cuts ready to start taking their toll, the path toward that grand bargain Obama campaigned on last year has significantly narrowed.
The president has summoned the top bipartisan congressional leadership to the White House, a meeting designed to give all sides a chance to stake out their fiscal positions with a new threat of a government shutdown less than four weeks away. There were no expectations of a breakthrough.
But for Obama, today’s session would be his first opportunity to spell out his 10-year, $1.5 trillion deficit reduction plan in a face-to-face meeting with congressional allies and adversaries.
His chances are squeezed by anti-tax conservatives, by liberals unwilling to cut into Medicare and Social Security, and by a Republican leadership that has dug in against any new revenue after ceding to Obama’s demands two months ago for a higher tax rate for top income earners.
On Thursday, two ill-fated proposals aimed at blunting the blame over the cuts – one Democratic and the other Republican – failed to overcome procedural hurdles in the Senate. Obama placed the responsibility on Republicans.
“They voted to let the entire burden of deficit reduction fall squarely on the middle class,” he said.