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White House Backs Sen. Harry Reid Debt Ceiling Deal: ‘The Ball Is In Their Court’

» 27 comments

White House Press Secretary Jay Carney released a statement Monday afternoon expressing administration support for Sen. Harry Reid‘s (D-NV) debt ceiling compromise that raises the debt ceiling by $2.7 trillion, cuts spending by the same amount, and contains no revenue increases. Carney’s statement made clear that this was not the President’s preferred choice, but noted that “it removes the cloud of a possible default from our economy through 2012.”

The statement is a departure from the administration’s recent strategy of holding frequent briefings with reporters, with President Obama taking an unprecedented number of questions. The White House later announced that President Obama would address the nation from the East Room at 9pm, with only print pool reporters in attendance. That means he won’t be taking questions tonight.

Carney’s statement, released around 3 this afternoon, frames the Reid compromise as the result of House Republicans’ obstinacy:

The President has been advocating a balanced plan that would reduce our deficit by $4 trillion by making large cuts in domestic and Pentagon spending, reforming entitlement programs, and closing tax loopholes for corporations, millionaires and billionaires.  This sort of approach won support from Democrats and Republicans in the Senate, but the House Republicans walked away after insisting that the budget be balanced on the backs of seniors and the middle class.

Now, faced with the “my way or the highway,” short-term approach of the House Republicans, Senator Reid has put forward a responsible compromise that cuts spending in a way that protects critical investments and does not harm the economic recovery.  All the cuts put forward in this approach were previously agreed to by both parties through the process led by the Vice President.  Senator Reid’s plan also reduces the deficit more than enough to meet the contrived dollar-for-dollar criteria called for by House Republicans, and, most importantly, it removes the cloud of a possible default from our economy through 2012. The plan would make a meaningful down payment in addressing our fiscal challenge, and we could continue to work together to build on it with a balanced approach to deficit reduction that includes additional spending reforms and closing tax loopholes for corporations, millionaires and billionaires.

Senator Reid’s plan is a reasonable approach that should receive the support of both parties, and we hope the House Republicans will agree to this plan so that America can avoid defaulting on our obligations for the first time in our history. The ball is in their court.

Reid’s plan is likely to receive ample criticism from both sides. As Jake Tapper notes, Reid’s plan relies on savings from drawdowns in Iraq and Afghanistan, “a technique Republicans assail as gimmickry though the House GOP budget offered by Rep. Paul Ryan, R-Wisc., included the same savings.

The lack of a revenue component to the plan will be seen as a cave-in by liberals. Think Progress’ Matt Yglesias spins Reid’s plan as a  (maybe) de facto revenue increase, given the fact that the Bush tax cuts expire in 2012. If Democrats hold the line on letting them expire (an if the size of Godzilla’s dad).

The fact is, though, that the administration has repeatedly asserted (without drawing a line in the sand) that the President would not sign a plan that doesn’t contain revenue enhancements. If this isn’t a cave-in, it’s at least a falling stalactite or two.

There’s a chance, though, that this is a gambit to get a clean debt ceiling increase. Yglesias points out that the Reid plan overcomes the House Republicans’ two stated obstacles (dollar-for-dollar cuts and no tax cuts), without touching Medicare or Social Security. If the House Republicans don’t agree to a plan that meets their stated criteria, that will leave only default or a clean increase.

It is significant that the White House chose to release a statement instead of holding a briefing. Today’s press schedule listed the briefing time as “TBD,” which means they were at least mulling one. The decision to release a statement, through Carney, that ends with “the ball is in their court” could be an indication that this is the start of a staring contest, that this is their final offer. In poker, it’s a bit like throwing in a raise without even looking at your last card, giving your opponent something to think about for the next few hours. Look for the President to flip over that last card tonight.

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  • Anonymous

    We have exactly the government we deserve. You can not elect stupid ideologues and expect good public policy outcomes.

  • Anonymous

    you’re old enough to vote? bahahahaha

  • Anonymous

    Ha! Finally Barry agrees to something that has been publicly announced!

  • Anonymous

    More than 60% of the public want cut, cap, balance, a bill that got bipartisan support in the House and that Harry refuses to bring up for a vote in the Senate, becuase he and the POTUS do NOT want a solution to this problem.

    Tonight Obama will blame bush, blame boehner, blame everyone but himself and his party and the lamestreamers in the media will sigh, bat their eylashes at him, claim he is a genius and a god, and demand that the public jump on board becuase HE said jump.

    Disgusting. disgraceful coverage from front to back on this whole process.

    is it any wonder the public holds the media is extreme low regard?

  • Anonymous

    Passing the buck. The administration has yet to produce a plan or anything beyond vague comments. Telling the legislative branch to do the work is typical at this point. The Obama White House needs to get enagged. Otherwise, what exactly will they run on in the next election?

  • http://profiles.google.com/bentleg14 Jerry Jones

    You are dead on Tina, the public have spoken, they want Cut/Cap/Balance, they don’t want gimmicks and they don’t care about Obama’s reelection.  I just wish Obama would put the country before his own hide.  How do you get a good deal done when he’s only thinking about himself?

  • http://profiles.google.com/bentleg14 Jerry Jones

    I agree, hope and change has turned into tax and spend.

  • Anonymous

    “The fact is, though, that the administration has repeatedly asserted (without drawing a line in the sand) that the President would not sign a plan that doesn’t contain revenue enhancements”

    Revenue enhancements? Why can’t liberals just call taxes “TAXES”??? Liberals always changing words when they sound sh*tty. The word liberal means your a complete p*ssy? Presto chango, we’re now Progressives!! Tax and Spend Democrats?? Not anymore. We’re now for “revenue enhancement.” Liberals shining up turds once again.

  • Anonymous

    “The fact is, though, that the administration has repeatedly asserted (without drawing a line in the sand) that the President would not sign a plan that doesn’t contain revenue enhancements”

    Revenue enhancements? Why can’t liberals just call taxes “TAXES”??? Liberals always changing words when they sound sh*tty. The word liberal means your a complete p*ssy? Presto chango, we’re now Progressives!! Tax and Spend Democrats?? Not anymore. We’re now for “revenue enhancement.” Liberals shining up turds once again.

  • Anonymous

    “The fact is, though, that the administration has repeatedly asserted (without drawing a line in the sand) that the President would not sign a plan that doesn’t contain revenue enhancements”

    Revenue enhancements? Why can’t liberals just call taxes “TAXES”??? Liberals always changing words when they sound sh*tty. The word liberal means your a complete p*ssy? Presto chango, we’re now Progressives!! Tax and Spend Democrats?? Not anymore. We’re now for “revenue enhancement.” Liberals shining up turds once again.

  • Anonymous

    It always was Tax and Spend. 

  • http://profiles.google.com/bentleg14 Jerry Jones

    I think that will be the president’s undoing in the end.  His constant tendency to disguise reality and attempts to manipulate the truth.  Revenue Enhancers are just Taxes and most of America knows that, Overseas Contingency Operation is a fancy word for War on Terror and The Party of No is another phrase for they are being Fiscally Responsible.  He is all smoke and mirrors, as another commenter put it, all hat and no cattle.

  • Anonymous

    as long as it gets us past the next election…………unreal

  • Anonymous

    I forgot to mention the Overseas Contingency Operation. Good catch. Add in that “Man-Made Disasters” for terrorist attacks. Smoke and mirrors is right.

  • Anonymous

    Obama is playing politics with the economy – he doesn’t give a rats ass what happens; there is a solution with bipartisan support…..I’m surprised Tommy didn’t highlight the ccb bill (plan) that got bipartisan support in the house, got tabled by Harry in the Senate, and whose poll a major cable network SPIKED becuase the result was that 66% of thepopulation wants cut, cap, balance.

    CNN spiked their own poll becuase hehimself doesn’t want a solution.

    Playing presidential politics at this level will backfire on POTUS; once again, he will stand in the eye of the pulic and pass the buck but most of thepublic remembers what Obama said in the past (despite the fact that the media doesn’t EVER callhim on it).

    Most of us remember Obama voting AGAINST raising the debt ceiling and saying this:

    “The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”

  • Anonymous

    This guy would sell out his own family if it made him look good politically. He sold out Wright and Ayers. If he thinks his family was worth political capital, I wouldn’t put it past him hanging them out to dry. He has no interest in the presidency, other than the perks of the job and him being a celebrity. He won’t quietly and respectfully get out of the spotlight like Bush did either. He and Clinton and Carter can all grandstand in front of the cameras together.

  • Anonymous

    “Obama — a demagogue for an age of smooth surfaces; Huey Long with a better tailor — pretended Friday to wonder whether Republicans “can say yes to anything.” Well.
    House Republicans said yes to “cut, cap and balance.” Senate Democrats, who have not produced a budget in more than 800 days, vowed to work all weekend debating this. But Friday they voted to table it, thereby ducking a straightforward vote on the only debt-reduction plan on paper, the only plan debated, the only plan to receive Democratic votes.
    Obama’s last venture into public specificity was his February budget, which proposed accelerating the nation’s descent into debt. It was rejected by the Senate 97-0. ”

    http://www.washingtonpost.com/opinions/congress-stands-its-ground/2011/07/25/gIQAmvNsYI_story.html
       

  • Anonymous

    As expected, the plan of dingy-harry includes over $1 TRILLION in phony cuts – i.e. “savings” from the winding down of the wars. It’s the usual BS that d-cRAT socialist throw at out and hope that some of it sticks. It won’t stick and it will only stink-up the process of real debt reduction.

    dingy-harry is scared to death that he might lose the BIG GOVERNMENT taxpayer funding for “cowboy poetry” if the “right-wing extremists” win !!!!  America will win – and dingy-harry will lose.

  • Anonymous

    They do? Says who exactly, and where are you getting the bipartisan support illusion from?

  • Anonymous

    The last Press Conference the President conducted was a disaster.  I have never seen a President in my life time act this way…. I can’t imagine this one will be an improvement.
     
    He only has 470 days left in office before he is voted out.

  • http://pulse.yahoo.com/_NWVKX2P2QBPQ6FHQHCHVIC2ALQ Fedup in Florida

    When is 13 a smaller number than 7?  When the senate is trying to hoodwink the American people, It will be easier for Boehner collect 7 democrat votes for his plan when the senate votes than it will be for Reid to collect the 7 republicans he needs, and there is no way in heck that the Dem plan would stand a chance in the House.   Harry’s… the Dem plan, as usual is total BS actually calls the withdrawl from the two wars as a cut of 1 trillion dollars to the budget, money that is already not going to be spent, then they look for some 500 billion in cuts to be named at a later date by an un-named commission…  Yea You Go Harry..  Mr. President, you are the leader of the free world, you treat us as if we are children, pre-schoolers at that, then you ask us to listen to you when you speak…  Do you really think the American people are this STUPID, are you still playing a game while the country approaches the edge?  I will watch you admonish the republicans this evening, demonize them for your own failings, laughing while laughing at your hubris.

    For you dems out there do you really buy the crap these guys try and sell you?

  • John

    No cuts to entitlements that’s like on thanksgiving getting the crust on the pie. This goes to show you democRATS only want to cut defense, but that gets nowhere nearer to balanced budget. What a waste of time. No personal responsible party can actually come up with a plan like this. Looks like smoke and mirrors all over again. Dodging real spending cuts are going to be of their own undoings if the nation.

  • Anonymous

    This is truly funny; I mean really funny.

    On Friday, Boehner  said they had a deal which included $800 billion in taxes and that the president then changed it to $1.2 trillion in taxes breaking the deal.

    Now Reid and the president say they have a plan with ZERO, NADA, ZIP tax increases but raises the debt ceiling   $2.7  trillion. I think we just discovered why we have not had any agreement – Barry’s sole interest is to get the debt ceiling behind him so that it’s not a campaign issue in 2012!

    Look- he gave up at least $800 billion in revenues to try to get his arse  re-elected!!

    LMAO

  • Anonymous

    Obama does nothing if it doesn’t benefit himself personally. And we all know about everyone he’s thrown under the bus after he could no longer extract any personal benefit from them.

  • Anonymous

    Looks like Tommy got it wrong again. NO WAY Obama was backing the Reid bill. How incomplete of (a whatever you consider yourself) can you possibly be?
    Whatever credibility you ever had (none in my mind) is vaporizing day by day.  

  • Anonymous

    >> QUOTE from the article: “Reid’s plan is likely to receive ample criticism from both sides. As Jake Tapper notes, Reid’s plan relies on savings from drawdowns in Iraq and Afghanistan, “a technique Republicans assail as gimmickry though the House GOP budget
    offered by Rep. Paul Ryan, R-Wisc., included the same savings.”

    The only problem is Tapper’s assertion is rather DISINGENUOUS since it implies, through its wording, that the Ryan plan and the Reid plan ultimately achieve an EQUAL amount in savings — which they do NOT.

    Ryan’s plan — love it or hate it — was all-encompassing and sweeping. It was designed to be a road map not only for year to come, but literally for FUTURE generations. And it was designed to mathematically eliminate the national debt entirely.

    Reid, on the other hand, is merely tossing out a one-time, low-ball figure. To try and bury news headlines for the next 12 months or so. In short, while Ryan was thinking long term, Reid is just trying to buy Obama some time and some cover, so he can try and get his worthless sorry ass reelected.

    Bottom line: as Charles Krauthammer jokingly noted (Monday, on Brett Baier’s show) the Reid plan is truly LAUGHABLE since it can only hit its savings total by tossing in things like “unspent money for the WWII invasion of Normandy.”

  • Anonymous

    The Reid plan will cause a credit downgrade if Moody’s et al are going to honestly assess the US debt.  Credit agencies want a genuine plan to change the debt trajectory, this isn’t it. 

    Everyone knows it, but will project surprise when it happens.

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