With a crucial meeting on a deficit-reduction plan scheduled for tomorrow, Democrats are becoming uneasy at the prospect that President Obama and House Speak John Boehner (R-Ohio) may agree on a plan that would include cuts to Medicare, Medicaid and Social Security – measures that were previously not even considered, according to a New York Times news report.
Failed talks between the GOP and Democrats on a deficit-reduction plan have forced President Obama and Rep. Boehner to get involved on an agreement that would help lift the federal debt ceiling by Aug. 2 before the country defaults on its credit obligations. Lawmakers have been divided along party lines on whether to close the deficit by increasing revenues or cutting costs. Conservatives, for instance, have demanded entitlement reforms to be part of any deficit-reduction plan, a measure Democrats have strongly opposed.
However, sources familiar with the subject have disclosed that Rep. Boehner may consider $1 trillion in new revenues, which would be part of a larger tax law overhaul, in addition to dramatic cuts to federal programs such as Medicare, Medicaid and Social Security. The tax law overhauls could include throwing out tax breaks for the oil and gas industry, according to the news report.
In light of their fight to hold control of the Senate and gain back the House, Democrats are worried they may be forced to agree to a plan they don't fully support. Senator Bernard Sanders (I-Vermont) has already urged the president to make at least 50 percent of deficit reductions come from revenues, according to the news report.
White House officials argued Democrats may be in a better position in Nov. 2012 if they focus on agreeing on a feasible deficit-reduction plan.
Read the New York Times news report about deficit-reduction negotiations.
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