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House Speaker John Boehner on Friday pulled out of negotiations with President Obama on raising the nation's legal limit to borrow money, just days before an Aug. 2 deadline when the government can no longer pay all its bills and faces its first-ever possible default.

"The White House moved the goalpost," Boehner said in a news conference, claiming that the talks broke down when the White House demanded an additional $400 billion in new revenues to the $800 billion that was agreed upon, "which was going to be nothing more than a tax increase on the American people."

Boehner also said, "They refused to get serious about cutting spending and making the tough choices that are facing our country on entitlement reform."

In a hastily arranged news conference in the White House briefing room, a visibly irritated Obama said that "it's hard to understand why Speaker Boehner would walk away from this deal."

"This was an extraordinarily fair deal," he said, explaining that the White House offered more than $1 trillion in cuts to discretionary spending, both domestic and defense and $650 billion in cuts to Medicare, Medicaid and Social Security in exchange for $1.2 trillion in new revenues.

After informing the president in a phone call of his decision to walk away, Boehner sent a letter to lawmakers saying, "In the end, we couldn't connect. Not because of different personalities, but because of different visions for our country."

Boehner will now work with Senate leaders on an alternative "to find a path forward," he wrote in the letter to lawmakers. But Obama said he wants to see congressional leaders at the White House Saturday to figure out how to avoid a government default.

"We have now run out of time," Obama said.

Boehner said he will attend the meeting.

According to a GOP leadership aide close to the talks, the sides were moving forward toward a total package that would cut $3 trillion to 3.5 trillion over a decade. It would have included an incremental increase in the $14.3 trillion debt ceiling now and force another one late next winter.

But the aide said a disagreement over revenues "blew this up."

When the bipartisan group of senators known as the "Gang of Six" released on Tuesday its deficit-reduction plan, which drew support from both political parties, including the White House, administration officials pulled back when the revenue numbers didn't match theirs.

There was a discussion about a potential trade of tax revenue for health care if spending targets weren't reached.

"There needed to be something on the other side of the ledger," the GOP aide told Fox News, adding that administration officials wanted to make this "onerous" if they were unable to reach the spending reduction goals, calling it "shared sacrifice."  

Senate Republican leader Mitch McConnell said in a statement "it's disappointing that the talks with the White House did not reach a favorable conclusion, and I appreciate the speaker insisting on reduced spending and opposing the president's call for higher taxes on American families and job creators."

"As I've said before, it's time now for the debate to move out of a room in the White House and on to the House and Senate floors where we can debate the best approach to reducing the nation's unsustainable debt," McConnell said.

House Majority Leader Eric Cantor said in a statement that "Democrats' insistence on raising taxes on small businesses and working families" has stalled months of negotiations. But he expressed confidence the country will not default on its financial obligations.

"America will pay its bills and meet its obligations, and in coming days we will offer a path forward that meets the president's request for a debt limit increase, manages down the debt, and achieves serious spending cuts," he said.

But Democrats, of course, had a different take on the latest development.

"Republicans have once again proven unable to overcome their ideological opposition to ending taxpayer-funded giveaways for millionaires, corporate jet owners and oil companies," Senate Majority Leader Harry Reid said in a statement.

"I applaud President Obama for insisting that any deal to reduce our deficit be balanced between cuts and revenues," he added. "We must avert a default at all costs, so it is time to reengage in bipartisan talks on an agreement that at least accomplishes that goal."

House Democratic leader Nancy Pelosi said, "Our economy, our children's education, our seniors' security and our nation's fiscal soundness require that we act without further delay.

"We are prepared to compromise consistent with our values, but we will not accept a short-term extension that compromises our economic security," she said.

OFFLINE

In an unusual display of emotion, President Obama angrily responded to House Speaker John A. Boehner's abrupt withdrawal from talks on a debt ceiling increase, and summoned congressional leaders to the White House on Saturday for emergency talks to plot a new course before the Aug. 2 deadline.

"We have run out of time," the president said in a hastily-called news briefing, just moments after Boehner informed him of his decision.

On Thursday, Obama and Boehner appeared to be closing in on a deal that would have raised the debt ceiling through 2013, combined with spending cuts and entitlement reforms to achieve $3 trillion in deficit reduction.

But talks apparently broke down in a dispute over taxes. Obama, prodded by Democrats, insisted that any deal include new revenues in addition to spending cuts.

"This was an extraordinarily fair deal. If it was unbalanced, it was unbalanced in the direction of not enough revenue," Obama said. "It is hard to understand why Speaker Boehner would walk away from this kind of deal."

Boehner told his Republican colleagues the White House was "simply not serious about ending the spending binge that is destroying jobs and endangering our children's future." A deal was "never really close," he wrote late Friday.

The two leaders had built a cordial relationship during both the budget agreement in April and the weeks-long debt ceiling talks.

But Obama chided the Ohio Republican, saying that at times Friday he could not even get a phone call returned.

"I've been left at the altar now a couple of times," he said.

Obama called the congressional leadership from both parties to the White House at 11 a.m. Saturday. Neither the House or Senate was due to be in session.

With the likelihood of a significant deal now likely scuttled, Obama said he would be willing to accept a "clean" debt ceiling increase "if they tell me that's the best they can do."


this cocky arrogant son of a **** has done it again. this isn't the first time he's done this during the current debate. and still, even to this day, obama hasn't put forth one specific detail on paper. it's all just speeches and generalities.

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Originally Posted by Dødherre Mørktre:


this cocky arrogant son of a **** has done it again. this isn't the first time he's done this during the current debate. and still, even to this day, obama hasn't put forth one specific detail on paper. it's all just speeches and generalities.

Yep.  Well, I have felt all along that this is mostly politicizing from both sides.  Both are positioning their parties for the upcoming elections.  And both are doing their level best to make the other side look bad and themselves to look good.

Boehner walks out and the PRez complains.  (Ignoring the fact that he, himself walked out of a meeting what...last Tuesday, yelling that he would veto?).

Not much mention of that in the news this time around.