No Big Deal? Debt Ceiling Talks Break Down (Again)

Posted by Karl, Patterico's Pontifications

•  I mocked the media’s coverage of this topic to date, let me point out some who are getting the story straight.
• Jonathan Karl at ABC News notes Pres. Obama was “visibly angry” at today’s presser
• Boehner held his own press conference ...White House moved the goal posts.
• ...President Obama on Thursday demanded another $400 billion in revenue... It is clear, however, that Boehner and Cantor were ready to accept up to $800 billion in revenue measures as part of a grand bargain. But when that number jumped, in part because of pressure from Democrats, the talks broke down 
• CBS News White House correspondent Mark Knoller confirms this (twice).
• It is getting increasingly difficult for anyone to miss that the GOP was ready to deal, while Obama is ready to campaign.
• Obama’s “malaise moment????

Some new information here, I didn't know about the increased revenue that Boehner and Cantor agreed to.  If true, this represents a significant concession.  Evidently, it didn't please the Democrats enough.

Politically, it looks like a misstep for Obama, but that doesn't appear to be the way the Democrats think about it.  We'll see.

If the Speaker agreed to 800 billion in new revenues, and got his 2.4 trillion in cuts, that should have satisfied the requirements that I've seen elsewhere ( made by Obama).  It was a three for one deal, 3 dollars in cuts for 1 dollar in revenues.  If he turns that down, he really did move the goalposts.  Everybody should have been happy, but look who is not.  (leaders in the Democrat party)

Update:

From  David Jackson, USA TODAY

• Boehner said the president insisted on higher taxes that would cripple job creation.
• "A deal was never reached, and was never really close," Boehner said.
• Obama and aides disputed that sentence, saying they were very close to what the president called a " big deal" 
• White House aides said the package could have added up to as much as $3 trillion or so in budget cuts and up to $1.2 trillion in new tax revenues
• ...including a gradual increase in the Medicare eligibility age from 65 to 67, and adjustments to the Consumer Price Index formula used to calculate Social Security benefits
• Boehner said the White House "moved the goalposts" by demanding $400 billion in additional tax revenues
• White House officials said they were always willing to negotiate that additional $400 billion.

The number needed then is 1 trillion in new revenues.  So where do the new revenues come from?  There's supposed to be enforcement mechanisms to this deal too.  It kinda looks like the fight isn't going to be over even if a deal is made.

Additional Update:

S&P is demanding 4 trillion in deficit reduction, if reports are correct.  The number suggest that this is part of the negotiations now.  In order to reach that number, the cuts will have to be deeper than the ones mentioned, or revenues will have to increase, or some combination.