The White House and the Speaker's office are denying it, sorta, but the word is leaking, via the NY Times, that Obama and Boehner have cut a deal. A big deal. A grand bargain, so to speak. The NYT"s sources are Hill Democrats, who apparently haven't been in on the negotiation. Obama and Boehner? This can't be good:
The Obama administration has informed Democratic Congressional leaders that President Obama and Speaker John A. Boehner were starting to close in on a major budget deal that would enact substantial spending cuts and seek future revenues through a tax overhaul, Congressional officials said Thursday.We'll need more details. But, it sure looks like Medicare is on the table -- or chopping block, I should say. Way to give away the best issue Dems have.
With the government staring at a potential default in less than two weeks, the officials said the administration on Wednesday night notified top members of Congress that an agreement between the president and Mr. Boehner could be imminent. The Congressional leaders, whose help Mr. Obama would need to bring a compromise forward, were told that the new revenue tied to the looming agreement to increase the debt limit by Aug. 2 would be produced in 2012 through a tax code rewrite that would lower individual and corporate rates, close loopholes, end tax breaks and make other adjustments to produce revenue gains.
Officials knowledgeable about the conversations between the administration and Congressional leaders said the details of the potential package remained unknown but they presumed it would include cuts and adjustments in most federal programs, including Medicare.
This can't be good for progressives. It won't be. Gaius just posted an update that suggests the Times story might be wrong. And that the President is instead pushing for even bigger cuts.
Even worse, Brian Beutler at TPM reports that the President is pushing for all program cuts and no tax increases at all.
