Politics

December 14, 2012

Fiscal cliff talks are 'frank,' but the deadlock continues

House Speaker John Boehner walked past reporters without comment on his meeting with Obama.

The Associated Press

WASHINGTON – Face to face with time running short, President Obama and Republican House Speaker John Boehner negotiated at the White House Thursday night in what aides called "frank" talks aimed at breaking a stubborn deadlock and steering the nation away from an economy-threatening "fiscal cliff."

John Boehner, Marsha Blackburn, Cathy McMorris Rodgers, Eric Cantor
click image to enlarge

House Speaker John Boehner, R-Ohio, would not give reporters any indication of any progress made after he met with President Obama for what aides called “frank” talks.

The Associated Press

Boehner returned to the Capitol an hour later, briskly walking past reporters without comment. There was no indication whether any progress had been made, though the use of the word "frank" by both sides to describe the talks suggested the president and the speaker stuck hard to their opposing positions.

The meeting came shortly after Obama suggested that the sluggish pace of deficit-cutting talks between the administration and congressional Republicans was a result of a "contentious caucus" of GOP lawmakers who were making it difficult for Boehner to negotiate.

Boehner saw it differently. He said earlier in the day: "Unfortunately, the White House is so unserious about cutting spending that it appears willing to slow-walk any agreement and walk our economy right up to the fiscal cliff."

Thursday night's meeting was the two men's second face-to-face encounter in five days as they seek to find an agreement that avoids major tax increases and across-the-board spending cuts scheduled to kick in January. Also attending were Treasury Secretary Timothy Geithner and Obama's chief congressional lobbyist, Rob Nabors.

Before the meeting, Boehner accused Obama of dragging out negotiations. Obama is insisting on higher tax rates for household incomes above $250,000 to cut federal deficits; Boehner says he opposes higher rates, though he has said he would be willing to raise tax revenue instead by closing loopholes and deductions.

Obama, in an interview during the day with WCCO-TV in Minneapolis, said that he was hopeful of a "change in attitude" from Republicans on raising taxes on the wealthy. "It shouldn't be hard to get resolved," he said.

He added that the notion of not raising taxes "has become sort of a religion for a lot of members of the Republican Party. I think Speaker Boehner has a contentious caucus, as his caucus is tough on him sometimes so he doesn't want to look like he's giving in to me somehow because that might hurt him in his own caucus."

While the impasse over the president's demand for higher tax rates continues to be a main obstacle in negotiations, Boehner complains that the president refuses to offer spending cuts to popular benefit programs like Medicare whose costs are rapidly rising.

The White House has pointed out that it has offered about $600 billion in specific savings over the next decade, including about $350 billion in spending reductions in health care programs such as Medicare.

There's increasing resignation within the GOP that Obama is going to prevail on the rate issue since the alternative is to allow taxes on all workers to go way up when Bush-era tax cuts expire on Dec. 31.

"I think it's time to end the debate on rates," said Sen. Richard Burr, R-N.C. "It's exactly what both parties are for. We're for extending the middle-class rates. We can debate the upper-end rates and what they are when we get into tax reform."

"He's got a full house and we're trying to draw an inside straight," said Sen. Johnny Isakson, R-Ga. When it was observed that making a straight would still be a losing hand, Isakson said: "Yeah, I know."

Boehner remains the key figure, though, caught between a tea party faction and more pragmatic Republicans advising a tactical retreat.

 

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