White House spokesman Jay Carney said Obama reported earlier in the day that “everyone in the room believes that a significant deal remains possible.’’
But Carney also affirmed that Obama would only go for a deficit-reduction plan that included both spending cuts and increased tax revenue, an approach that Republicans say would never get through Congress.
Obama and the vice president spent more time with McConnell than they did with Reid, an indication of the differences they still need to bridge. McConnell was also seen speaking with White House Chief of Staff Bill Daley moments before his meeting with Obama and Biden.
“The meeting concluded but they will continue to talk,’’ McConnell spokesman Don Stewart said afterward.
Hours earlier McConnell reaffirmed Republican opposition to more tax hikes in a speech from the Senate floor.
“It’s time Washington take the hit,’’ he said, “not the taxpayers.’’
McConnell said any tax increase or new spending would be counterproductive to economic recovery, and he pointed out that Democrats had been unable to pass tax increases on the wealthy when they controlled both chambers of Congress last year.
Reid said: “I hope my Republican colleagues will put the economy ahead of politics.’’ Speaking on the Senate floor, he said: “I hope they’ll join us to create jobs and set aside their desire to please the Tea Party and defeat President Obama.’’
At issue is not just the staggering national debt but a showdown on the federal borrowing limit. Without an agreement that cuts long-term deficits, Republicans say they will not vote to increase the nation’s borrowing, which will exceed its $14.3 trillion limit on Aug. 2. The administration has warned that if Congress does not raise the debt ceiling, it could mean the first US financial default in history and send economic shockwaves around the world.
To meet government obligations, a two-year increase in the debt ceiling would have to be about $2.4 trillion. Republicans want deficit reduction of a similar amount over 10 years.
