Decatur, Ala. | Tuesday, May 21, 2013
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Congressmen optimistic about effort to avoid going over ‘cliff’
By David Espo
Associated Press

WASHINGTON — Congressional leaders from both parties voiced fresh optimism Friday after meeting with newly re-elected President Barack Obama about avoiding year-end “fiscal cliff” tax increases and spending cuts that would hammer the middle class and risk plunging the economy into recession.

House Speaker John Boehner of Ohio said Republicans are willing to consider increased revenue “as long as it is accompanied by spending cuts” as leaders in a divided government get to work on a possible deal after a fierce election campaign.

He presented a framework that one official said called for a deficit down-payment of unspecified size by year’s end, to be followed by comprehensive tax reform and an overhaul of Medicare and other benefit programs in 2013.

Democrats indicated some spending cuts would be fine with them. “I feel confident that a solution may be in sight,” said House Democratic leader Nancy Pelosi of California.

The goal of the high-pressure talks to come is to produce a multitrillion-dollar deficit-reduction plan that can take the place of the across-the-board tax increases and spending cuts that are slated to take effect on Jan. 1.

In remarks while reporters were present, Obama stressed that time was short as he welcomed the leaders to the White House for the first time since winning re-election this month. “We have urgent business to do,” he said.

If nothing else, the mood seemed good around the table in the Roosevelt Room of the White House. Obama noted that it would soon be Boehner’s birthday and said he wasn’t “going to embarrass him with a cake because we didn’t know how many candles were needed.”

“Yeah, right,” said Boehner, who’s turning 63 on Saturday, chuckling as he playfully poked the president in the elbow.

There was no indication that the meeting touched on Obama’s campaign-long call to raise tax rates at upper incomes.

In their public comments, neither the president nor the lawmakers dwelt on long-standing differences that doomed previous deficit negotiations. Senate Republican leader Mitch McConnell came closest, telling reporters that while Republicans are willing to discuss increased revenue, most members of his party “believe we are in the dilemma we are in not because we tax too little but because we spend too much.”

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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We went over the cliff from 2008-2010 when the democrats controlled the senate and congress and the white house and went on a spending spree this article from the hill is reality.

" The 2012 fiscal year ended this past weekend with a whimper, as our nation suffered approximately $1.2 trillion of new debt this year, bringing the total to $5.3 trillion since Barack Obama became president.

$5.3 trillion is a lot of money. It is more than any other president has increased the national debt in history. In fact, $5.3 trillion constitutes about one-third of the entire national debt of the United States.

But most stunning of all, $5.3 trillion is more money than the gross domestic product of all but two other countries in the entire world — China and Japan.

If we only took the $1.2 trillion deficit that was created this past year, the story would be different. After all, Canada, the world’s 10th-largest economy, has a gross domestic product of $1.7 trillion. In fact, you have to go to our 14th-ranked neighbor to the south, Mexico, to find an economy that is smaller than Obama’s 2012 fiscal-year deficit.

That’s right, in one year the United States had a larger deficit than the entire economy of Mexico. "

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