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CBS News reports
President Obama said Wednesday that the Republican position that they will not accept any tax increases as part of a deal to increase the debt limit is not “sustainable,” adding, “everybody else has been willing to move off their maximalist position; they need to do the same.”
Mr. Obama said Democrats have already taken on their “sacred cows” in the negotiations, including accepting spending cuts that hurt their constituencies and an openness to “look at” entitlement programs. Yet Republicans, he said, have refused to break from their opposition to tax increases for “corporate jet owners” and oil companies.
“If everybody else is willing to take on their sacred cows and do tough things in order to achieve the goal of real deficit reduction, then I think it would be hard for the Republicans to stand there and say that, ‘The tax break for corporate jets is sufficiently important that we’re not willing to come to the table and get a deal done,’ or, ‘We’re so concerned about protecting oil and gas subsidies for oil companies that are making money hand over fist, that’s the reason we’re not going to come to a deal,’” he said. “I don’t think that’s a sustainable position.”
Mr. Obama predicted “we will reach a deal” to raise the debt limit, adding that his “expectation is that they’ll do the responsible thing.”
Added the president: “Look, I think that what we’ve seen in negotiations here in Washington is a lot of people say a lot of things to satisfy their base or to get on cable news, but that, hopefully, leaders at a certain point rise to the occasion and they do the right thing for the American people.”
“And that’s what I expect to happen this time,” he continued. “Call me naive, but my expectation is that leaders are going to lead.”
“Every single observer who’s not an elected official, who’s not a politician, says we can’t reduce our deficit in the scale and scope that we need to without having a balanced approach that looks at everything,” he said, adding, “You can’t reduce the deficit to the levels that it needs to be reduced without having some revenue in the mix.”
“And the revenue we’re talking about isn’t coming out of the pockets of middle-class families that are struggling, it’s coming out of folks who are doing extraordinarily well and who are enjoying the lowest tax rates since before I was born,” he said.
Smargalicious // Jun 29, 2011 at 12:38 pm
BHO himself uses Air Force One to scam the taxpayers.
bujin // Jun 29, 2011 at 1:00 pm
Yes, we all know that GWB walked from Washington to his ranch. Typical dumb response, but not unexpected.
Obama: Republican Leaders Must Bend on Taxes – New York Times (blog) | Conservatives for America // Jun 29, 2011 at 1:16 pm
[...] a default on the nation's debt. “Call me naive,” he told reporters at a mid-day news …Obama: GOP position on debt limit not "sustainable"FrumForumall 8 news [...]
valkayec // Jun 29, 2011 at 1:37 pm
My only critique of the President’s news conference was his not explaining in more detail what Treasury is doing – borrowing from federal retirement funds, etc – to stave off default. There is a vast unawareness or inability to understand what default means to the economy at large. Yes, some politicians are just making noise but some actually do believe the government can default without consequences.
The non-partisan Center for Budget & Policy Priorities warned that the Treasury would have to cut payments – spending – by 44% if a default occurs. That’s a lot of paychecks to fighting GIs, vets, seniors, and employees that will not be sent as well as a lot of payments to military and medical vendors that won’t be paid.
If anyone needs a fairly clear idea of the consequences, they need only to look at California in 2009 when the Legislature failed to pass a budget, causing the State to issue IOUs to many of its creditors. The result was a decrease in the State’s bond rating from Triple A to A- and a major increase in interest rates on those bonds. It will take decades for California to regain it’s Triple A rating. Meanwhile, Californians will be paying much larger interest rates – meaning higher taxes and fees to cover those higher rates or much reduced serves including those that benefit the business community – because the Legislature failed in its fiscal responsibilities.
Meanwhile, Wall St. does know what can happen. The purchase of 1 year credit default swaps (CDOs) has skyrocketed, causing those insurance rates to rise dramatically. More and more money is moving offshore to hedge against default loss. Moreover, our creditors around the world are already beginning to worry about whether Treasury notes are a safe investment and it gives impetus to the argument that the dollar should no longer be the world’s reserve currency.
Recent reports note, too, that businesses across the country are holding back on spending, whether for equipment or hiring, as a result of their fear of a default. That’s slowing the economy at a time when it’s already fragile. Mark Zandi of Moody’s just stated that the economy could really grow in the 2nd half of this year if the debt ceiling is raised now. If not, he said the country would fall back into recession with massive layoffs, severe business contraction, and immense loss of wealth.
With all the warnings coming from people and organizations that are experts in the field, why would anyone, especially member of Congress, think they can default without consequence – believe that a default with all of its negative results would be good for the country? These people are insane! And it’s not just politicians who believe in a fantasy, 44% of the American public believe there won’t be hugely negative consequences. Regardless of how many experts write and warn of what could happen, people don’t want to believe it. Will it take the destruction of the entire economy for people to wake up?
LFC // Jun 29, 2011 at 1:43 pm
Obama has just publicly placed the Republicans front and center as THE obstruction to deficit reduction. Everybody else gave up something, but they dug in (helping his case a great deal) with their full throated defense of gas and oil subsidies. Now if they vote with their Tea Party masters who can’t do math and refuse to give an inch, they’ll get the blame just like they did in the 1990s. And rightly so.
Do they really want to go into 2012 having caused a double dip recession. Well, maybe they do.
Solo4114 // Jun 29, 2011 at 3:47 pm
Tactically speaking, in some ways Obama’s placing them front and center actually helps some of the less zany GOP members who are looking for political cover to get a deal done. They can now credibly say “He’s outmaneuvered us, and if we refuse at this point, we’ll get all the blame if things go to hell in a handbasket.” That may be BARELY enough to get the deal done. I hope, anyway.
Smargalicious // Jun 29, 2011 at 1:50 pm
Absurd.
The double-dip recession, the housing market situation, the $875B+ stimulus that didn’t work, the Obamacare fiasco…Obama owns it all.
Can’t blame Bush anymore, fellas. Hee!
LFC // Jun 29, 2011 at 2:12 pm
Actually, with the Case-Shiller index still above the level of previous bubbles and the bad debt still not flushed out of the system, we can definitely still put the housing market situation on Bush. You seem to believe that if you run a car into a brick wall and the repairman tries to fix but can’t (or at least not as fast as you wish), it’s their fault. Nice try at a responsibility dodge, a skill the Republicans have become amazingly good at.
Stimulus? Even the CBO said it worked. Again, nice try.
Obamacare? The CBO said it saves money, as compared to the GOP/Paul Ryan fantasy plan which costs us $200B in the first ten years.
Double dip recession? When it’s triggered almost immediately due to world market reaction of default caused by Republicans refusing to negotiate from their mathematically unsustainable position, good luck pushing that onto Obama. The campaign ads write themselves.
drdredel // Jun 29, 2011 at 2:24 pm
you’re correcting Smarg’s random trolling?
pack a lunch, you’ll be here a while.
KRH67 // Jun 29, 2011 at 4:22 pm
OK, this really really bothers me. A lot. these statements are almost as stupid as something out of Palin’s mouth:
““And the revenue we’re talking about isn’t coming out of the pockets of middle-class families that are struggling, it’s coming out of folks who are doing extraordinarily well…”If you’re a — if you are a wealthy CEO or a health — hedge fund manager in America right now, your taxes are lower than they have ever been. They’re lower than they’ve been since the 1950s…And you can afford it. You’ll still be able to ride on your corporate jet; you’re just going to pay a little more.”
You could maybe, MAYBE scrape that argument by if you refer to raising absolutely only to the top tax rate. Even then, for a married couple thats about 375,000 a year I believe. Is that good money? Absolutely, and most people would be THRILLED to have it. But are people making that much per year speeding around in their own jets? Laughable. This is the kind of populist BS I thought electing an obvious intellectual like Obama would AVOID, not promote. If you are talking about raising the top TWO brackets, now a couple making 200,000 is paying more as well. Again, good money? Absolutely. But nothing like this propaganda would make you think. If you want to get serious about this kind of stuff, and stick it to the richies, ADD ANOTHER BRACKET. Don’t punish those who have done relatively well while crusading against the ultra-richies.
This especially bothers me because the top 10% pays 70% of the taxes as it is. So these “rich bankers” everyone bitches about bailing out are in no way bailed out by “everyone,” they’re bailed out by the top 10%. But these rich bankers are already in the top .1%. So who gets screwed coming and going? The rest of that unlucky top 10%. Most of whom work really hard and get paid good money for their efforts, but they aren’t touching the millions per year the top of the top grabs. And yet many of them are now, thanks to Obama’s ridiculous rhetoric, lumped in with the .1% that everyone else wants to tax to oblivion.
Are these people in the top brackets well off? Absolutely. But they are hardly the ones abusing the system, getting bailouts, dodging taxes, etc. Why can’t the president distinguish? Crusade against those various credits/deductions, sure. But this ridiculous populist crap makes my blood boil.
valkayec // Jun 29, 2011 at 5:11 pm
I don’t think the attached link (and Bartlett column) answers all your concerns or frustrations. But it might help.
http://capitalgainsandgames.com/blog/bruce-bartlett/2284/will-higher-taxes-tank-economy
KRH67 // Jun 29, 2011 at 6:04 pm
Appreciate the link. Its not really relevant to my thoughts, though. I don’t run around in a circle shrieking at the thought of raising taxes, I think it’s probably necessary. I’m just incensed by the populist crap spewing out that ignores reality to pander to the extreme. I see frums most recent post covers this, those are my thoughts as well
ottovbvs // Jun 29, 2011 at 5:39 pm
This especially bothers me because the top 10% pays 70% of the taxes as it is.
Speaking of blood boiling, rhetorical bs. Where exactly does Obama say families with incomes of around $375,000 have their own corporate jets? The comment about the jets relates to the issue of a specific tax breaks on corporate jets and also carried interest which although it’s really income is taxed as a capital gain and allows hedge fund managers and others who often own corporate jets to escape millions of dollars in taxes. Another strawman?
“these statements are almost as stupid as something out of Palin’s mouth”
Ummhhhh