SEARCH
« Conservative Group Under Fire over Slavery Comment | Main | Sen. Durbin to ABC News: 'Disappointed' in Status of Debt Talks »
Monday
Jul112011

Obama Injects Urgency Into Deficit Talks: Time to 'Pull Off the Band-Aid'

Official White House Photo by Pete Souza(WASHINGTON) -- President Obama injected a sense of urgency into the high-stakes deficit reduction negotiations Monday, calling on lawmakers in both parties to "pull off the Band-Aid" and compromise on spending cuts and tax increases.

"I've been hearing from Republicans for some time that it's a moral imperative to deal with our debt and deficit in some way. So what I've said to them is, 'let's go,'" he said at a White House press conference just hours before congressional leaders were slated to return to the negotiating table.

Obama has endorsed a "balanced approach" to deficit reduction that would trim close to $4 trillion over the next decade through a mix of spending cuts -- including changes to some entitlement programs -- and tax increases for wealthier Americans and corporations.

But Republicans oppose any deal that results in higher taxes, saying they would burden Americans in a weak economy. And many Democrats say they oppose cuts to entitlements without any new tax revenue. The president acknowledged the seemingly insurmountable standoff Monday, but said leaders on both sides need to sacrifice some of their "sacred cows" to get a deal done. He also rejected the possibility of a short-term extension of the debt ceiling to buy more time.

"We might as well do it now," Obama said of the aversion to compromise in both parties. "Pull off the Band-Aid. Eat our peas. Let's step up. Let's do it. I'm prepared to take significant heat from my party to get it done. I expect the other side should do the same."

So far that has proven easier said than done.

House Minority Leader Nancy Pelosi has categorically ruled out any cuts or changes to entitlement program benefits, while some Republican leaders have drawn a line in the sand over taxes.

Both sides may now consider a smaller deficit reduction package -- perhaps around $2 trillion -- based on some of the spending cuts identified in talks led by Vice President Joe Biden over the past few weeks.

The debate over a deficit reduction deal is a prelude to dealing with a bigger issue: raising the nation's debt limit, which must happen by Aug. 2 or the U.S. will run out of money and could default on some of its loans, administration officials say.

Republican leaders have insisted that, at a minimum, any increase to the legal amount the nation can borrow to pay its bills must be matched with corresponding cuts in spending.

Talks will continue Monday afternoon at the White House -- the third meeting since Obama became directly involved in the talks. Negotiators for both sides will meet every day until a deal is made, Obama said Monday.

Copyright 2011 ABC News Radio

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>






ABC News Radio