President Obama met with congressional leaders at the White House on Friday to negotiate over the expiration of the Bush tax cuts and the looming problem of the so-called fiscal cliff, with the leaders agreeing that the meeting had been constructive.
We had a very constructive meeting with the President to talk about Americas fiscal problem, said Speaker of the House John Boehner, R-Ohio, in remarks to reporters following the meeting. I outlined a framework that deals with reforming our Tax Code and reforming our spending. I believe that the framework that Ive outlined in our meeting today is consistent with the Presidents call for a fair and balanced approach. To show our seriousness, weve put revenue on the table, as long as its accompanied by significant spending cuts, and while were going to continue to have revenue on the table, its going to be incumbent for my colleagues to show the American people that were serious about cutting spending and solving our fiscal dilemma, and I believe that we can do this and avert the fiscal cliff thats right in front of us today.
Senate Majority Leader Harry Reid, D-Nev., noted that there has been a precedent for such meetings in the past. The Bush tax cuts were due to expire at the end of 2010, and Congress and the Obama administration agreed to extend them for another two years. He said they were prepared to work during the Thanksgiving recess to hammer out a plan.
This isnt the first time that weve dealt with these issues, said Reid. We feel we understand what the problem is, and I feel very good about what we were able to talk about in there. We have the cornerstones of being able to work something out. Were both going to have to give up some of the things that we know are a problem, and so its like when we arrive at a point where we all know something has to be done. There is no more lets do it some other time. Were going to do it now. I think that we feel very comfortable with each other, and this isnt something where were going to wait until the last day in December to get it done. We have a plan. Were going to move forward on it, and were going to work during the Thanksgiving recess. Were going to meet with the President when we come back the first week. At least thats as I understand it. So I think it was a very constructive meeting. I feel very good about what we were able to talk about.
House Minority Leader Nancy Pelosi, D-Calif., echoed the upbeat nature of the comments, which appeared to be aimed at soothing the financial markets.
It was a very constructive meeting, said Pelosi. We had a recognition that every person in America knows that we must reach agreement. The speaker spoke about a framework going into next year. I was focusing on how we send a message of confidence to consumers, to the markets, in the short run too. That is to say that we should have a goal in terms of how much deficit reduction. We should have a deadline before Christmas. We should show some milestones of success so that confidence can build as we reach our solution, because if we do not reach agreement, not only will we miss the opportunity for doing something good for our economy and lifting the spirits and the confidence in our country, we will have an economic downturn that must be avoided. We understand our responsibility there. We understand that it has to be about cuts. It has to be about revenue. It has to be about growth. It has to be about the future, so as we cut investments and as we talk about revenue, we have to do so in a way that promotes growth and supports the future. It was good. I feel confident that a solution may be in sight.
Senate Minority Leader Mitch McConnell, R-Ken., emphasized that he was prepared to agree in ways to raise revenue, but said that entitlement programs should also be part of the discussion. I can only echo the observations of the other leaders that it was a constructive meeting, he said. We all understand where we are. I can say on the part of my members that we fully understand that you cant save the country until you have entitlement programs that fit the demographics of the changing America in the coming years. Were prepared to put revenue on the table provided we fix the real problem, even though most of my members, I think without exception, believe that were in the dilemma were in not because we tax too little, but because we spend too much.
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