After months of failed negotiations between Obama and Democratic law makers and Republican law makers on an U.S. Debt Deal has once again stalled and failed, the Senate’s head Republican and House Speaker John Boehner had harsh words for President Obama. Mitch McConnell outright said a “real deal” is not possible as long as Obama is President.
A deal was needed by July 22nd so that a debt ceiling increase could be passed by August 2nd to prevent the U.S. from defaulting. The talks have stalled since the government reached the current $14.2 trillion debt ceiling limit back in May.
Republican law makers have been clear from the beginning that the debt ceiling can not simply be raised without cuts to the deficit put into place. Setting forth a minimum of $2 trillion worth of cuts, and a willingness to even combat the broken tax code and entitlement programs, as well as correcting loop holes in the tax code, it has been clear that Republicans wish to combat this issue strongly. The only restriction they have placed on the debate is on tax increases. Tax increases, especially in an already strongly struggling economy hurts the economy further.
Despite the terms being clear, Senate Democrats went ahead and drafted a proposal that included $2 trillion worth of tax increases onto the American public. Had the tax increases portion of the proposal had been removed, a deal could have been met already.
President Obama had said recently that “nothing is off limits” in the debt deal debate, however he has not shown this to be true. Those words came right after he refused to meet with Republican lawmakers to discuss the negotiations. Now as Democrats refuse to budge on raising taxes in a poor economy, McConnell said on the Senate floor that with Obama as President, a “real deal” is not possible.
Negotiations are still set to continue however.