Washington, DC (WP) — On Friday morning, after months of refusing to negotiate on the budget or debt ceiling, the House GOP met with President Obama to discuss terms of a larger agreement to end the latest crisis in Washington. But given the promising start, insiders say negotiations stalled, and no one knows where this leads.
Under pressure from conservative groups and the Koch brothers to end the standoff, Speaker John Boehner and House GOP began talks on a “grand bargain” that both sides could gain from.
Boehner offered the following:
|GOP gets things they need for the good of the country which Ted Cruz says a majority of Americans support:||Obama gets a few things that only he wants, which benefit no one else:|
|Full repeal of all entitlements including:
Plus additional GOP priorities such as
President Obama counteroffered agreeing to GOP terms, but making an additional demand that millionaires and billionaires pay $1 more in taxes per year. Not 1%, but $1.
The House GOP refused offer, with John Boehner calling it “job killer”. House Budget Chairman Paul Ryan said there could be “no deal if President Obama insists on making hard-working Americans pay off all that debt he ran up since 2001.” Majority Leader Eric Cantor called the counteroffer “insulting” and “typical of how unreasonable and unwilling to negotiate this president is.”
But there’s still hope that a last minute deal can be reached to avert the debt default on 10/17– after returning to the Hill, GOP leaders consulted with their caucus and made a new counteroffer which includes all previous items (killing all New Deal and Great Society entitlements, end of Obamacare, Keystone XL, etc.) AND taxes raised on incomes under $50,000 to pay for capital gains taxes to be cut in half. At press time Obama had not yet responded. Ted Cruz reassured his colleagues in the House that “Obama will cave this time for sure.”