Angry Obama Demands Tax Increases or No Deal

WASHINGTON - U.S. House Speaker John Boehner broke off talks with President Barack Obama on Friday on a deficit-reduction deal to prevent a devastating default and said he would try to hammer out an agreement through the Senate.
In a dramatic turn of events with the deadline to raise the U.S. debt ceiling just 11 days away, a stern-faced Obama expressed frustration at the Republican leader's move, saying it was "hard to understand why Speaker Boehner would walk away from this kind of deal."
Boehner, in a letter to fellow lawmakers, said he and Obama were unable to reach agreement on a broad deficit reduction package they had been negotiating and that the two "had different visions for our country."
A deep divide over tax revenue was at the heart of the collapse in negotiations, which derailed an effort to craft a sweeping $3 trillion deficit-cutting plan that now seems beyond reach. Both sides blamed the other for the impasse.
With the Aug. 2 deadline fast approaching for Congress to increase the $14.3 trillion debt ceiling, Boehner said he would begin talks with Senate leaders to "in an effort to find a path forward." An aide said a deal needs to be set by Monday.



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Boehner: House Will Compromise on Debt Limit Despite Tea Party

House Speaker John Boehner predicted Thursday that a majority of House Republicans will end up supporting some kind of compromise as the Senate began debating a House-passed effort to tie an increase in the debt ceiling to conservative demands for a balanced budget amendment to the Constitution.

Majority Leader Harry Reid, D-Nev., called up the measure to placate Republicans demanding a vote. But he said it "doesn't have one chance in a million of passing the Senate."

At a news conference, Boehner told reporters, "Frankly, I think it would be irresponsible on behalf of the Congress and the president not to be looking at back-up strategies for how to solve this problem."

"At the end of the day, we have a responsibility to act," the Ohio Republican said.

Asked whether GOP lawmakers supporting the House "cut, cap and balance" debt limit measure would be unwilling to ultimately compromise, Boehner said, "I'm sure we've got some members who believe that, but I do not believe that would be anywhere close to the majority."
Bailey Comment: Does this really surprise anyone? Birds of a feather flock together.
Read more: Boehner: House Will Compromise on Debt Limit Despite Tea Party
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House Votes 234-190 to Pass 'Cap, Cut and Balance'

WASHINGTON (AP) — The House has passed legislation conditioning a $2.4 trillion increase in the nation's borrowing cap on a tea party-backed plan to require immediate spending cuts and a constitutional amendment requiring a balanced budget.

The 234-190 vote sends the "cut, cap and balance" plan to the Democratic-controlled Senate, where it has virtually no chance of passing.

With the House tally cast, attention is returning to efforts in the Senate to provide President Barack Obama authority to impose an increase in the debt limit without approval by Congress and on a new Senate "Gang of Six" proposal to cut the deficit by almost $4 trillion over the coming decade.

Read more on Newsmax.com: House Votes 234-190 to Pass 'Cap, Cut and Balance'
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Why Is Cost of Illegal Immigration Ignored In Debt Ceiling Debate?

While the debt ceiling debate rages and Congress is busy haggling over who should be taxed and what programs should be slashed, they’ve promised to consider all options except…one.

Lawmakers have chosen to forget that immigration is a discretionary social policy that by definition is designed to be adjusted to serve the nation’s broad national interest, particularly during difficult economic times. This discretionary policy is a powerful economic tool, but only if it is brought out and used.

Reforming immigration would tighten the labor market, open up jobs for legal U.S. residents, and reduce the overall fiscal strain that immigration imposes on health care, education and other social services.

Doing so is an urgent mandate and a legitimate, justified use of policy. 

If not now, then when? 

Read more: http://www.foxnews.com/opinion/2011/07/18/why-is-cost-illegal-immigration-ignored-in-debt-ceiling-debate/#ixzz1SXd7vFg3

Read more: http://www.foxnews.com/opinion/2011/07/18/why-is-cost-illegal-immigration-ignored-in-debt-ceiling-debate/#ixzz1SXcw8Vln

What the Debt Limit Battle Is All About

It's hard to keep up with all the arguments and proposals in the debt limit struggle. But what's at stake is fundamental.

The bedrock issue is whether we should have a larger and more expensive federal government. Over many years, federal spending has averaged about 20 percent of gross domestic product.

The Obama Democrats have raised that to 24 or 25 percent. And the president's budget projects that that percentage will stay the same or increase far into the future.

In the process, the national debt as a percentage of gross domestic product has increased from a manageable 40 percent in 2008 to 62 percent this year and an estimated 72 percent in 2012. And it's headed to the 90 percent level that economists Kenneth Rogoff and Carmen Reinhart have identified as the danger point, when governments face fiscal collapse.http://townhall.com/columnists/michaelbarone/2011/07/18/what_the_debt_limit_battle_is_all_about

Obama Plans Pricey Birthday Bash on Default Day

As America’s poorest wait for Social Security checks that may never come on Aug. 3, President Barack Obama will be out celebrating a milestone birthday at a party where tickets cost up to $35,800 each.
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