No stopgap: Obama demands big deal for debt limit

By Ben Feller

Associated Press

Published: Monday, July 11 2011 4:05 p.m. MDT

President Barack Obama sits with House Speaker John Boehner of Ohio, as he meets with Republican and Democratic leaders regarding the debt ceiling, Monday, July 11, 2011, in the Cabinet Room of the White House in Washington.

Charles Dharapak, Associated Press

WASHINGTON — Imploring both political parties to give ground, President Barack Obama declared Monday he would reject any stopgap extension of the nation's borrowing limit, adding fresh urgency for Republicans and fellow Democrats to resolve intense tax and spending disputes and head off economic calamity.

"If not now, when?" Obama said in a news conference just ahead of his latest bargaining session with congressional leaders at the White House. That meeting lasted about 90 minutes and ended with no sign of progress.

Lawmakers planned to return to the White House for more talks Tuesday afternoon.

Obama told reporters the sessions would be an everyday affair until there was agreement, and he refused to even entertain the idea of a backup plan should they fail and the government should default on Aug. 2.

"We are going to get this done," Obama insisted. They have two weeks or less to do so in order to get any deal through Congress in time.

Yet the path to an accord remained hard to see. Even as Obama spoke, Republicans renewed their opposition to the tax increases he sees as crucial along with spending cuts for reducing huge federal deficits and restraining the soaring national debt.

"Do you need to raise taxes in order to get control of spending? I think the answer is no," said House Speaker John Boehner just before heading to the White House.

Said House Majority Leader Eric Cantor: "We are not going to raise taxes. That's all."

And there was no indication late Monday that the latest bargaining session moved either side off its talking points.

"Republicans are insisting on cutting seniors' benefits instead of closing taxpayer-funded giveaways to billionaires and corporate jet owners," Adam Jentleson, spokesman for Senate Majority Leader Harry Reid, said after the White House meeting broke up.

Democrats suggested that most spending cuts be concentrated in the later years of a deal, but a Republican aide said GOP lawmakers took issue with that suggestion and want the cuts to begin right away.

A potential deal — a package that could total $2 trillion or more in deficit cuts over a decade — is considered necessary for Congress to lift the nation's $14.3 trillion debt limit. Failure to lift that cap could cause the government to default on its bills and sink the economy and the world into deeper trouble.

Obama renewed his case Monday for a package that would put a historic dent in the country's deficits by blending politically poisonous elements for both parties: tax hikes for the wealthy and big corporations opposed by Republicans and social service cuts that Democrats decry.

Obama tried to alter the debate by saying that any potential tax increases on wealthier people would not take effect until 2013. That would fall after the next election, when Obama will seek re-election and control of the House and the Senate will be at stake. Meanwhile, a short-term debt-limit increase would keep the issue boiling during the campaign.

The president said he would refuse to accept stopgap legislation. "It's not going to get easier; it's going to get harder," Obama said. "So we might as well do it now. Pull of the Band-Aid. Eat our peas."

He said he would refuse to sign into law a short-term extension of the debt limit, which technically left open the possibility that it could become law without his signature. The White House later confirmed that Obama meant he would veto such a bill.

More broadly, Obama sought to position himself as the pragmatist seeking a compromise in a divided town. He tried to build pressure on Congress to prove to a disillusioned American people that "this town can actually do something once in a while."

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