No Budget Deal Reached in White House Talks, as Boehner Tells Obama: Don't Put GOP in a Box

Tuesday, 05 Apr 2011 12:51 PM


  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
WASHINGTON — Republicans and Democrats failed to reach agreement Tuesday during White House talks aimed at forging a budget deal that would keep the U.S. government operating beyond Friday.

House Speaker John Boehner, facing his first big test as leader, told President Barack Obama Republicans would not be "put in a box" and forced to accept a deal that failed to make deep spending cuts.

"He said Americans are concerned about how much we're spending and how we're spending it," Boehner's office said after a nearly hourlong meeting between Obama and congressional leaders.

The two parties traded accusations as they jockeyed for the high moral ground while the White House directed government agencies to prepare for a shutdown that could throw hundreds of thousands out of work and ripple through an economy still recovering from the worst recession since 1930s.

With only four days to cement a deal, party leaders have yet to resolve major differences in a budget plan that would slice a record $33 billion from current spending levels.

Republicans have floated a new plan that would keep the government running for another week as negotiations continue, but it would impose another $12 billion in cuts. Democrats have called that unacceptable.

Analysts said a shutdown still appeared less than likely at this point, as neither side benefits if inaction shutters everything from passport offices to bankruptcy courts.

"Our odds remain above 50 percent that the government will not shut down on Saturday, though it is close to a jump ball," wrote MF Global analyst Chris Krueger in a research note.

Markets had a different view.

Prediction market Intrade, which allows people to bet on the outcome of events, showed investors put a 55 percent chance on the government shutting down by June 30 after Boehner's office said no deal had been reached at the White House talks.

Lawmakers' talk of shutdown could be an exercise in brinkmanship to force the other side to blink or it could be a sign that a deal still remains out of reach.

Amid the fight, Republicans Tuesday laid the groundwork for wider budget battles, proposing an overhaul of government-run health programs, dramatic tax cuts and sharp spending caps in a budget plan for the next fiscal year, which starts Oct. 1.

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Report: Obama Sets Record for Presidential Memoranda

Wednesday, 17 Dec 2014 23:10 PM

From policy on gun control to immigration and labor regulations, President Barack Obama has issued more presidential mem . . .

American Jailed for 15 Years for Helping Al-Qaeda

Wednesday, 17 Dec 2014 22:13 PM

A naturalized American was jailed for 15 years in Miami on Wednesday for conspiring to provide thousands of dollars to A . . .

Gizzi: Obama Ignores Rep. Sanford on Ending Cuban Travel Ban

Wednesday, 17 Dec 2014 22:12 PM

The White House never briefed nor gave advance notice to the congressman who first introduced legislation that contained . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved