Obama Threatens Veto – Of Any Debt Limit Deal Under $2 Trillion

[whosinpower]

http://news.firedoglake.com/2011/07/08/obama-threatens-veto-of-any-debt-limit-deal-under-2-trillion/

snip - Because we have a governing elite that doesn’t understand basic economic theory, the horrific jobs report will probably not change the mindset of the next 72 hours, which is to cement a deal to massively reduce the deficit, mostly through cutting spending. The White House has convinced themselves that this would increase confidence from the business community and lead to hiring. In fact, the President is so convinced this is a good idea that he, not the Republicans, is using the debt limit as a hostage. He threatened to veto any solution that didn’t equal at least $2 trillion-plus in deficit reduction.

snip - Congress is being pushed into a proposal nobody very much likes by the President, who is using the debt limit to get this done. That’s really the dynamic.

And we’re now hearing that the tax changes, the “sweetener” for Democrats to sign onto the deal, may be theoretical.

snip - A business lobbyist said that a debt-ceiling deal might sketch out “broad parameters” for tax cuts, with details to be filled in later by tax-writing committees of Congress.

In other words, cut $3 trillion in spending now, including to cherished safety net programs, in exchange for… a promise of getting to tax reform later. And to let the committees sort that out.

[atreides1]

1. So the people get nothing

But words and empty promises!

[Autumn]

2. OMFG,

WTF I don't fucking get it.:puke: how fucking clueless can they get.

[Avalux]

3. Are you throwing up based on snips of a firedoglake article,

with very little real information. I hope not.

[Autumn]

4. Why yes I do believe I am . Save your hope,

you might need it. I read more than snips, if you click on the link in the OP you can actually read the WHOLE article. It has lot's of information.

[whosinpower]

5. abc news blog

http://blogs.abcnews.com/politicalpunch/2011/07/president-obama-threatens-to-veto-deficit-reduction-package-without-extension-of-debt-ceiling-to-aft.html

http://blogs.abcnews.com/politicalpunch/2011/07/in-deficit-negotiations-tomorrow-president-obama-will-push-congress-to-think-big-democrats-say.html

snip - The Democratic officials said there were three options on the table. One would be a smaller, short term deficit reduction measure that would require addressing the issue again in 2012, a direction that President Obama does not want to do, and which House Speaker John Boehner, R-Ohio, said cannot pass the House.

(which is why he threatened to veto any such option)

snip - A second option would reduce the deficit by the same amount that the Congress would vote to increase the debt ceiling, roughly $2 trillion.

(which FDL addresses - spending cuts WIHOUT any increase to revenue)


But President Obama, the Democrats said, will push the congressional leaders to seize this moment and go beyond that and try a third option, addressing new revenues and taxes, entitlement spending, defense spending and discretionary spending, putting together a larger package that seriously addresses the deficit and steers the nation towards a more fiscally sustainable path.

(Which the GOP have already whimpered about)

[Autumn]

7. What I am not seeing in those two articles is the

link to the yahoo article on the Analysis where this appears:


"It's possible that a final deal might throw a few crumbs at Democrats who want to change the tax subsidies for ethanol or oil companies. But this would be face-saving, hardly a major whack at corporate tax deductions," said Greg Valliere, chief political strategist at consultancy Potomac Research Group.
"The militance -- and unity -- of House Republicans has been underestimated. They're on a mission from God; they are determined to slash spending and have no stomach for tax hikes -- and they're utterly indifferent to the fact that their rigidity could cost them re-election next year," he said.
"They have veto power over any deal, so the revenue raisers will be modest and the spending cuts will be significant."

[emulatorloo]

9. Interesting - that is some pretty heavy duty spin FDL is applying

"But President Obama, the Democrats said, will push the congressional leaders to seize this moment and go beyond that and try a third option, addressing new revenues and taxes, entitlement spending, defense spending and discretionary spending, putting together a larger package that seriously addresses the deficit and steers the nation towards a more fiscally sustainable path."

[Name removed]

6. Deleted message

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[emulatorloo]

10. Compare the FDL article to the ABC article. The FDL is pretty heavy on the spin

FDL pushes a lot of speculation and spin. That is the job of bloggers and pundits - SENSATIONALIZE and SPECULATE. That drama-making drives hits and helps a blog raise its ad rates.

[blkmusclmachine]

8. More LIES about getting to it "later:"

Tomorrow, tomorrow, it's always a day away.

[bornskeptic]

11. FDL is lying again. No surprise there.

He threatened to veto any solution that didn’t equal at least $2 trillion-plus in deficit reduction.




The veto threat was not about the size of the deficit reduction. It was about the amount by which the debt limit is raised. He would sign any increase of the debt limit of over $2 trillion if it included no deficit reduction at all. The point is that he can't allow the Republicans to bring on another debt ceiling crisis before the 2012 election. That he prefers a larger deficit reduction package is a completely different issue.