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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Obama scolds GOP lawmakers in effort to get debt deal

President tells them to quit protecting jet-setting executives

Peter Nicholas Tribune Washington bureau

WASHINGTON – President Barack Obama sharply intensified pressure on congressional Republicans in negotiations over the federal debt, depicting GOP leaders as supporting tax breaks for jet-setting corporate executives at the expense of college scholarships or medical research.

Obama’s decision to chastise Republican leaders in an hourlong televised news conference Wednesday moved the debt talks out of the realm of closed-door Washington meetings and into full public view, setting off a high-stakes effort to mobilize public opinion.

Obama and Republicans have been locked for more than a month in a confrontation over raising the nation’s borrowing limit. Republicans have insisted they will not approve the increase unless Obama and congressional Democrats agree to reduce the debt in the long term. But last week, top Republicans pulled out of discussions with Vice President Joe Biden, objecting to a White House demand that any deal include additional revenue as well as spending cuts.

Obama on Wednesday laid out his arguments in simple, everyday terms, echoing an ex-president he has been studying: Ronald Reagan.

“These are bills that Congress ran up,” Obama said, in explaining why the U.S. must not default on its debt obligations. “They took the vacation. They bought the car. Now they’re saying, ‘Maybe we don’t have to pay.’ ”

Obama chided lawmakers for taking frequent recesses instead of staying in Washington to finish work on the debt question.

Reacting to the criticism, senators considered abandoning a weeklong July 4 recess, and House leaders said they would stay in session until negotiations were finished.

But Republican leaders offered scant hope of a shift on the issue of tax revenues. “The president is sorely mistaken if he believes a bill to raise the debt ceiling and raise taxes would pass the House,” said House Speaker John Boehner, R-Ohio.

Among the GOP rank-and-file, however, some indicated they would consider new revenue sources, posing a potential challenge to party unity.

Others said it would depend on which loophole was being eliminated. “I’m willing to take a look at the special deals,” said Sen. Ron Johnson, R-Wis. “I would love to do away with special tax breaks, but not legitimate business deductions.”

Obama cited the high-profile tax break offered to owners of corporate jets several times in the news conference, even though it would bring in only an estimated $3 billion over 10 years. Other Democratic proposals would net $41 billion over 10 years by tightening oil and gas tax credits and $21 billion by eliminating credits for hedge fund managers.

The largest Democratic tax proposal would limit the deductions that may be claimed by those earning more than $500,000 a year. In all, the White House said earlier this year that it wants $760 billion in new revenue over 10 years.

The government reached the limit of its borrowing ability in May, and federal officials warn that maneuvers to continue paying the nation’s bills will be exhausted by Aug. 2, risking a default on federal obligations.