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Minnesota Vikings quarterback Tarvaris Jackson (7) throws a pass during the first quarter against the Denver Broncos in a NFL preseason football game, Thursday, Sept. 2, 2010 in Minneapolis. (Associated Press: Andy Blenkush) |
Where the two sides remained apart were on Medicaid cuts, with Republicans demanding tens of billions of dollars more in cuts than the president was comfortable making. White House officials described that difference as possible to overcome, however. The revenue component, in the end, remained unbridgeable. According to senior White House officials, each side had agreed to pass tax reform down the road that would result in $800 billion in revenue generated -- the equivalent amount of savings that would be achieved if the top-end Bush tax cuts were simply allowed to expire. The administration wanted $400 billion in revenues on top of that. Republicans wanted zero, and in statements on Friday night GOP leadership aides insisted that the White House had changed the contours of the negotiations by making that demand in recent days.
Obama offered to move off that $400 billion mark should GOP leadership lessen the type of cuts to entitlement programs they were demanding, White House aides said.
In addition, the two sides could not figure out what to do if that aspirational tax reform package wasn't achieved.
Dear Colleague, Our economy is not creating enough jobs, and the policies coming out of Washington are a big reason why. Because of Washington, we have a tax code that is stifling job creation. Because of Washington, we have a debt crisis that is sowing uncertainty and sapping the confidence of small businesses. Because of Washington, our children are financing a government spending binge that is jeopardizing their future. Since the moment I became Speaker, I've urged President Obama to lock arms with me and seize this moment to do something significant to address these challenges. I've urged him to partner with congressional Republicans to do something dramatic to change the fiscal trajectory of our country. . .something that will boost confidence in our economy, renew a measure of faith in our institutions of government, and help small businesses get back to creating jobs.
The House this week passed such a plan. . .the Cut, Cap & Balance Act, which passed the House with bipartisan support.
Along with Majority Leader Cantor, I have also engaged the president in a dialogue in recent days. The purpose of this dialogue was to see if we could identify a path forward that would implement the principles of Cut, Cap, & Balance in a manner that could secure bipartisan support and be signed into law.
During these discussions - as in my earlier discussions - it became evident that the White House is simply not serious about ending the spending binge that is destroying jobs and endangering our children's future.
A deal was never reached, and was never really close.
In the end, we couldn't connect. Not because of different personalities, but because of different visions for our country.
The president is emphatic that taxes have to be raised. As a former small businessman, I know tax increases destroy jobs.
The president is adamant that we cannot make fundamental changes to our entitlement programs. As the father of two daughters, I know these programs won't be there for their generation unless significant action is taken now.
For these reasons, I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward.
The Democratic leaders of the House and Senate have not been participants in the conversations I and Leader Cantor have had with the White House; nor have the Republican leaders of the Senate. But I believe there is a shared commitment on both sides of the aisle to producing legislation that will serve the best interests of our country in the days ahead - legislation that reflects the will of the American people, consistent with the principles of the Cut, Cap, & Balance Act that passed the House with bipartisan support this week.
I wanted to alert you to these developments as soon as possible. Further information will be coming as soon as it is available. It is an honor to serve with you. Together, we will do everything in our power to end the spending binge in Washington and help our economy get back to creating jobs.
Sincerely,
John Boehner
"Republicans have once again proven unable to overcome their ideological opposition to ending taxpayer-funded giveaways for millionaires, corporate jet owners and oil companies. I applaud President Obama for insisting that any deal to reduce our deficit be balanced between cuts and revenues. We must avert a default at all costs, so it is time to reengage in bipartisan talks on an agreement that at least accomplishes that goal. I agree with President Obama that a short-term extension is unacceptable."Tags: boehner
(Photo: Reuters / Eric Thayer) A sign is seen for the 405 freeway in Los Angeles, California July 14, 2011. "Carmageddon" is the name Los Angeles residents are giving the likely epic traffic tie-up that will result when a 10-mile (16-km) stretch of the 405 Freeway is closed for construction, including the demolition of the bridge, from Friday night to Monday morning between two of the nation's busiest interchanges. |