Deficit reduction impasse comes down to tax question
June 28th, 2011
04:20 PM ET
10 years ago

Deficit reduction impasse comes down to tax question

Washington (CNN) - A day after meeting separately with President Barack Obama, the Senate's top Democrat and top Republican continued to spar Tuesday over whether increased tax revenue should be part of a deficit reduction agreement.

Senate Minority Leader Mitch McConnell, R-Kentucky, told reporters that an insistence by Obama and Democrats to raise tax revenue "in the middle of an economic slowdown" was blocking progress on a deal demanded by Republicans in return for their support to raise the federal debt ceiling.


Filed under: Deficit • Harry Reid • Mitch McConnell • Senate
soundoff (15 Responses)
  1. ConservaFASCISTS

    Mitch "The Terd" McConnell needs to get off of that lame talking point. We need revenue! The fascists republican regime is delibirately trying to destroy the economy. I only say that because they're voting against measures that they were previously for. This is not a dictatorship or Burger King. You can't have it your way. RAISE TAXES!!!!

    June 28, 2011 04:27 pm at 4:27 pm |
  2. Rudy NYC

    Both Sen. McConnell and Speaker Boehner are on record stating that there will be "no compromise" with the President on any issue. So when McConnell makes his altruistic statement that Democrats are "blocking" progress he is actually speaking a very twisted truth. I would like to know who these economists are that saying that raising taxes is more likely to hurt than help. It is how we rose out of Reagan's self inflicted recessions, and it is the will of the American people. Do it!

    June 28, 2011 04:29 pm at 4:29 pm |
  3. David

    Okay, what should actually be done. . . The US, Europe, Japan, and all other major economies with a decent human rights record (all of which have massive debt issues) force the IMF, etc. to reset debt to $0 across the board. This is inevitable anyway as Europe and Japan are both going to fail soon enough. Even China has a debt, debt is artificial – as obviously when adding up the debt and surpluses of all countries you should end up with $0, this is not near the case.

    June 28, 2011 04:30 pm at 4:30 pm |
  4. Democrat Class Warfare - Destroying the economy, destroying the country

    The American people have been fed a steady stream of grossly distorted and biased information regarding the debt and the annual deficits. Bush43 set the nation on this road we are on with deficits in the multiples of hundreds of billions range. The economy went into a ditch during a recession that began in December 2007 and officially ended in June 2009.
    Yes, a stream of lies by the left. The country was running deficits of 200-400 BILLION under Bush. Under Obama, these have sky rocketed to 1700 BILLION as far as the eye can see. Obama and the Democrats have increased federal spending THIRTY FIVE PERCENT in TWO YEARS. This while the country is going through hard times.

    As the economy came out of the ditch, the motor has sputtered and continues to do so. But, we are still on the same road that leads to annual deficts in the hundreds and hundreds of billions.
    Wrong... TRILLIONS, almost TWO TRILLION PER YEAR. Complements of Obama and the Democrats.

    The President has tried to change the course, only to be thwarted from doing so at every turn in the road. The Bush Tax Cuts account for $5T of our current debt. The unfunded wars account for another $2T in debt. Lost revenue from unemployment since 2007 accounts for at least another trillion. The Bush Tax Cuts have cost more than all entitlements combined. As much as we have a spending problem, we also have an even bigger revenue problem on our current path.
    Obama has NEVER tried to "change the course". He has consistently spent or tried to spend more and more. He has not shown there is ANYTHING of meaning he is willing to cut. If Obama and the Democrats took in TEN TRILLION, it wouldn't matter because they would still spend FIFTEEN TRILLION.

    June 28, 2011 04:31 pm at 4:31 pm |
  5. Hammerer

    Our government at work. Business as usual with congress,wait until the last minute and kick the can one more time.
    Oh yes Obama is no where to be found. Playing golf or campaining as usual.

    June 28, 2011 04:33 pm at 4:33 pm |
  6. Republicans - The "Not Intended To Be Factually Accurate" Party

    We have a $14.3Trillion dollar debt. If we could run annual budget surplusess of $143 Billion dollars FOR 100 YEARS straight, we could pay it off.

    The highest surplus the United States ever ran in one year was $220 Billion. The SECOND highest surplus we ran was $130 Billion. These occured under President Clinton's tax rates in 2000 & 1999. We'd better raise the damn tax rates [at a minimum] back to those in place during the Clinton Administration.

    We also need to eliminate the loopholes such as the tax subsidies to the ISANELY PROFITABLE Oil Industry. Not sure why we are re-distributing wealth FROM millions of average citizens who pay taxes TO a the Fortune 500 greedy corporations. How dare the Republicans accuse Obama of wanting to "re-distribute" wealth. They've been doing it for 30 years!

    June 28, 2011 04:52 pm at 4:52 pm |
  7. Ed Texas

    Why can't the rich and wealthy pay their fair share? Why is it Mitch "The Terd" McConnell and his Repub Goons want the Bush 43 tax cuts for the rich at the expense of the poor and elderly? Democrats want to end the tax breaks for those who make 250K or more a year. The majority of Americans agree, but the Repubs only want to ruin this country's economy by focusing on more breassfor the wealthy at the expense of the working and middle class.

    June 28, 2011 04:53 pm at 4:53 pm |
  8. Randy

    Personally i like my revenue. I work to make my money. The government gets part of my check because I am forced to give it to them. Back government off, make them pay for the needs of the country, let people pick what they want to support, instead of being forced to support government programs. Hand outs do not enable people.

    June 28, 2011 04:55 pm at 4:55 pm |
  9. Sniffit

    Actually, Beaker, we're in the middle of an economic "speed up" from what was the complete disaster created by GOP policies, which had finally reached its nadir and started turning around due to Obama and the Dems' policies...or at least we were in a "speed up" until the GOP started using the debt ceiling to bludgeon all confidence and certainty out of the market and scare everyone senseless with their brinksmanship hostage game intended to help them destroy Medicare, Medicaid, SS and the rest of the societal safety net rather than tell the rich that play time is over. This is all on purpose mind you...this is a deliberate act intended to hamper the burgeoning recovery and even to reverse it if possible. They want those numbers as bad and you suffering as much as possible for November 2012.

    June 28, 2011 05:09 pm at 5:09 pm |
  10. Marie MD

    I WILL NOT GIVE ONE MORE CENT TO A DEMOCRAT (NOR A REPUBLIKAN) UNTIL the democrats grow a pair and tell the rethugs to go to hell!!!
    Maybe we do need more women in congress because I know I would have already told boner and his cronies what they could do with and to their rich friends and that I would NOT be blackmailed. These clowns in congress are only thinking of reelection in 2012. YOu know what? I will vote but not for one single incumbent.
    GROW A PAIR DEMOCRATS IN CONGRESS!!!!! TAX THE RICH and leave the seniors, the middle class the the poor the hell alone!!!

    June 28, 2011 05:11 pm at 5:11 pm |
  11. Marie MD

    These rethugs don't want to tax people making over $250,000 but let's tax seniors who are not retired but are making $80,000 a year because THEY ARE THE RICH AMERICANS. While they are at (lieberman and coburn) let's raise the Medicare age to 67 because after all who gives a hoot about grandma or grandpa. The rethugs want us dead. We are gnats in their plans to take over with the fake religious beliefs and lies.

    June 28, 2011 05:13 pm at 5:13 pm |
  12. once upon a horse

    READ THE POLLS GOP! You always claim that you want to do the "will of the American people". Well a majority of the American people are in favor of ending the tax cuts for the upper 2% Even some of the wealthy have said they don't mind being taxed more. STOP protecting your rich buddies and do something most of us want. And as far as the Dems are concerned PLEASE DO NOT CAVE IN. I like President Obama but one of the things he tends to do that makes me teed-off at him is that he gives WAY too much to these Republicans. It gets him NOWHERE. Stand up for the Middle Class because the GOP is not.

    June 28, 2011 05:27 pm at 5:27 pm |
  13. Mikey

    @ Dem class warfare – You probably don't know that President Obama stopped Bush's practice of keeping the war costs off the budget. Thanks to Clinton, Bush ran a surplus over his first two years – yet he ran up $5T in debt. That is impossible to do at $200-300 billion per year. $300B x 6 = $1.8T. Where'd the other $3+ trillion come from? Can I ask a question? Do you swallow all right wing propaghanda whole?

    Obama's deficts are mostly due to the two wars, the shortfalls in revenue due to the Great Recession, and the costs of fixing the mess your guys left – not your imaginary "welfare state" costs, which you probably can't detail, because they are simply not real.

    June 28, 2011 05:35 pm at 5:35 pm |
  14. just a thought

    If the Democrats keep running the country like they did in California they are going to take the country down the same path. Have you checked out what is happening in California lately?

    June 28, 2011 07:06 pm at 7:06 pm |
  15. Lost in Texas FOREVER

    why do I get the spooky feeling that the Democrats are going to back down to the Republicans, give them mostly what they want, NO tax increases for the wealthy, THEN on top of that come back and tell the American people that a deal has been reached?? ENOUGH IS ENOUGH!! Obama needs to stand up to these GOPers and say NO MORE TAX CUTS..let the Republicans take the fall for the debt ceiling not being raised this time even though they voted 7 times to do it under Bush. President Obama and the Democrats PLEASE fight for the middle class and DO NOT CAVE IN AGAIN!!

    June 28, 2011 07:31 pm at 7:31 pm |