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A statement released late Friday by the office of Senate Majority Leader Harry Reid suggests Congress is moving towards a deal to avoid a government shutdown--at least for the short term. Democrats say they are "encouraged" by reports about the short term spending bill that House Republicans are expected to pass and send to the Senate on Tuesday.
"The plan Republicans are floating today sounds like a modified version of what Democrats were talking about." said Reid's spokesman Jon Summers in a statement.
A senior Democratic aide warned that the devil was in the details, and that leaders had yet to examine the full details of the entire House bill, which would fund the government for two weeks and includes $4-billion in spending cuts.
Still, Democrats appear to be much more optimistic about the short term fix than they had been earlier this week.
What's changed?
Yesterday, Senate Democrats said they were combing through the president's 2012 budget request, looking for spending cuts that could be applied this year. They also said they'd entertain cutting $8.5-billion worth of earmarks in the current spending bill that was passed by Congress in December.
Today, as House Republicans announced some of the details of their short term bill, they also cited earmarks and included similar cuts from the president's 2012 budget. (You can read the House proposal here.)
In a written statement, Senate Republican Leader Mitch McConnell said the House bill "focuses on bipartisan ideas to reduce federal spending."
"President Obama and congressional Democrats agree with Republicans that these are potential areas to reduce spending, removing any excuses they have offered for demanding their status quo spending levels,” McConnell wrote. “As a result, there is now a clear path to finishing this short-term measure before the March 4th deadline."
Privately, Senate Republicans feel they have boxed Reid into a procedural corner and forced him to accept the House-backed bill. GOP aides say it would have been almost impossible for Reid to pass a Democratic bill before the government runs out of money at the end of next week.
If an agreement can be reached for a short term fix, a much larger fight remains on a longer-term bill that would fund government operations through September.
The long term bill that House Republicans passed last week contained $60-billion in spending cuts. Senate Democrats called it dead on arrival.
"We should keep our focus on what we need to do to cut spending and keep our economy growing in the long-term," said Reid's spokesman Jon Summers."But the 'my way or the highway' approach Republicans have been taking in the past only signals a desire for a government shutdown that our country can't afford. We hope this is a sign that they have abandoned it and will work with Democrats moving forward."
While Republicans say they “welcome” the news that Democrats appear fairly warm to their two-week spending proposal, GOP House leader Eric Cantor reiterated his party’s demand for deeper slashes to the longer-term measure that would fund the government until the end of the fiscal year.
“I’d caution my Senate Democrat colleagues to make sure that their cuts are significant and serious spending reduction proposals, not just minor efforts to trim around the edges,” he said in a statement.
Msnbc.com's Carrie Dann contributed.
Leave a Comment:
tony,
To educate you on reality there is only one president in US history who didn't blame his predecessor for the county's problems.......George Washington.
If you are taking heat like Obama does for not fixing the disaster he inherited fast enough then he sure should blame Bush........
Bush should be blamed for decades, he took a surplus and doubled the debt, left a $trillion deficit and the worst economy in 80 years, biggest bank, insurance, energy company failures.....you name it, the worst of the worst happened under Bush's watch and it isn't easy to fix.
Your comment on the stock market shows how clueless you are by the way. You clearly aren't very smart on business matters.
Mike,
get used to it. It isn't what it should be around here. Once in a while, someone has a decent suggestion, but mostly they just cut and paste someone else's thoughts, and then make some asinine remark. No value to a lot of these posts.
Bring it on Mike, what would you like to debate?
One subject near and dear to me is deficit spending. It seems like both parties lack the fiscal discipline to tackle it because to do so makes getting re-elected very difficult. The right clearly lacks the discipline and the left just plain seems OK with the deficits. I sense that a very painful round of inflation is coming our way that is going to hurt the poor and those on fixed incomes the worst. It is cruel to continue the undisciplined spending as the results are all but certain to be more painful than any sacrifice required to get our spending under control.
Mike I agree with you, people want all the services that come from the government but don't want to pay the taxes that provide income to the government.
I think what Clinton did to balance the budget while keeping spending increases at a modest 3% was the model for a president. Bush doubled those spending increases and if you add the off budget wars Bush was around 8% annual increases.
The problem now is that we are in the worst depression in 80 years, it's a very bad time to cut back when spending is what's required to pull us out. I'm glad the GOP suddenly cares about the deficit, we could have used that thinking from 2001-2007 and perhaps we wouldn't be in this mess in the first place.
Common sense,
A penny saved is a penny earned. Or, in the case of our government, a penny cut from here can go towards paying for something over there. No need to raise taxes. There is soooooo much fat in the federal government that we could cut and cut for years.
As for the Bush administration, the congress was controlled by the Democrats for the last six of President Bush's eight years in office. They do the spending, not the president.
When it come to wars and the budget for the Pentagon, I hear nothing about reductions, and even increases in spending have popped up, despite the fact the war in Iraq is over and we are drawing down troops.
When it comes to people's health care, school loans, and quality of life, I only hear cut, cut, cut. Is this country serving us, the people, or them the rich? When they could have raised 700 billion by taxing the rich, none of these custom-suit "heroes" on the picture voted yes. However, now that it is down to the money for the little man, they all to eager to cut our livelihood. Vote them out!!!
The government should be shut down. Harry Reid should not compromise with these fat cats that are eager to spend only when they send us to die in meaningless wars.
That is because the "defense contractors" are looked at as being TOO BIG TO FAIL. Just like General Motors who is 200,000 employees. We just can't let them go.
Well, close to 1 million VERY well paid employees and giant corporations are employed exclusively by federal deficit run defense spending. The problem is we let them keep spending more and more on defense making more and more Americans dependent on it for jobs. If everything was left up to our current government we would still be supporting the horse and buggy industry because they were too big to fail when oil came along.
The problem with the "peoples" school loans, healthcare and quality of life is the "PEOPLE" don't pay a freaking thing for them. We now have over 50% of all wage earners in the US not paying Federal Income taxes which pay for just about all of that. This is up from a more sane and realistic 19% in 1963 when the national debt was $3 billion dollars including a war. Maybe a correlation there?
Everyone says "that 50% can't afford to pay". Well the problem with that is that "50%" can still vote and literally control what to do with everyone else's tax money. They would vote Adolph Hitler into office if he continued to support and increase endless entitlements and the amount of people who don't pay federal income taxes. That very dangerous 50% could care less if we have a $2 trillion dollar deficit or $20 trillion because they don't, and won't, pay a penny for it.
The rich don't vote these crooks into office. The 50% that don't pay federal income taxes do. Do you think it is coincidence the same core group of incumbent criminals who let the largest financial meltdown in the history of mankind happen were voted back into office? Once in office the crooks will take money from the rich to let them not pay taxes either. That logic goes both ways. Only the middle class wants fiscal responsibility and are just getting screwed by both the lower class and wealthy. The don't have to votes or the campaign money to change the situation.
Don't kid yourself, the Federal Government is in business for itself and not the people.
Dumb demo's dont they know they have to pass the bill before they know whats in it. Even Odumbo and Odumbonites know that.
Gee, I sure wish all the Republicans and Fox-sniffers would STOP being so gullible and stupid. The GOPs do not give a rat's ass about you, they only care about enriching themselves and pandering to their rich donors.
The only possible reason to slash spending in the middle of an economic crisis - which will SLOW recovery according to nonpartisan analysts - is if in fact THEY DO NOT WANT THE ECONOMY TO RECOVER, so they will be in a better political position in the 2012 elections. If the economy is bad, people will vote against the ones in power.
It is not about you, it is about them, and it is COMPLETELY DISGUSTINGGee, I sure wish all the Republitards and Fox-sniffers would STOP being so gullible and stupid. The GOPs do not give a rat's ass about you, they only care about enriching themselves and pandering to their rich donors.
The only possible reason to slash spending in the middle of an economic crisis - which will SLOW recovery according to nonpartisan analysts - is if in fact THEY DO NOT WANT THE ECONOMY TO RECOVER, so they will be in a better political position in the 2012 elections. If the economy is bad, people will vote against the ones in power.
It is not about you, it is about them, and it is COMPLETELY DISGUSTING..
You are financially uneducated. The Federal Government does not control the economy. The "FEDERAL RESERVE" does and Congress has not exercised the slightest power over them since JFK was assassinated doing just that. Nobody has tried to shut down the defense contractors since JFK either.
When the international bankers who own the Federal Reserve get tired of buying stocks, business's and real estate for 25 cents on the dollar they will get the economy moving again. So get this right...... The FEDERAL RESERVE does not want the economy to recover. The FEDERAL GOVERNMENT only gives a crap about itself and will do nothing to help. NEITHER gives a crap about the people.
All the federal government can do is tax, borrow or spend all of which just add to our debt, slow and ruin the economy. If you want to see the economy recover start to talk about removing the Federal Reserve. THAT WILL GET IT MOVING!!
As long as ignorant people continue to believe Congress controls the economy we are doomed. We keep getting mad at and replacing the wrong people. All government spending does is help bankers to collect interest and government dependents, NOT the economy.
The Democratic Party is going to have to change their name just to get votes. I recommend the"Demospends", or, maybe the "Hippocrats"
In the near future, calling someone a Democrat will be synonymous with calling them an idiot.
The new insult.
I applaud Bill Marvel's comments. As a small, certified woman owned, veteran owned business that works not only on corporate contracts but with government contracts as well, the feeling of the political climate has made me wonder what has happened to this great country of ours. We can all agree to disagree, but what about rolling up the shirt sleeves and truly figuring out a way to get us back on track. Mud slinging is not the way to move forward. I for one, am tired of hearing the senators and congressman threaten to shut down the country because they don't get their way. It is almost like these people all need a "time out" or "put your nose in the corner and leave it there until you can behave". The reality is that it would cost billions of dollars to shut our country down. Where does that money come from? Us, the American people.
Should the electorate decide they are at an impasse with the budget for 2011 and shut the government down, I think of all the small businesses that will suffer or close their doors because a group of people could not sit down and act responsibly on behalf of their constituents. It will create the continuation of high unemployment, home foreclosures etc. Not something any of us want to see or experience.
Even during the Depression of the 1930's, our country pulled together. It was a rough time, put we made it. Its time to pull together again!!! STOP the nastiness; STOP wishing harm on other Americans i.e. government employees; Take action if you are not happy with the way things are going. Show what being an AMERICAN really means.
Again, many thanks Mr. Marvel for your concise and well written thoughts.
GOD BLESS OUR AMERICA!!!!!
We did not pull together during the depression and that is the last place we want to go back to. We destroyed the gold standard and started the federalist endorsed fractional reserve banking, debt incurring nightmare. People treated the unemployed looking for jobs like they were the enemy. The Federal Reserve forced FDR to file the country into a bankruptcy to the Federal Reserve bankers that is still in effect. For all practical purposes we destroyed the Republic and started a debt run socialist state that has made us addicted to deficit spending and destroyed the country. All we do is inflate the dollar and borrow to keep this nightmare going.
It was WWII that brought the country together. We were able to exploit all of Europe spending borrowed money on arms and oil etc for years before entering the war ourselves. We then got all the contract work to rebuild all the enemy countries and loaned them all the money to pay for it. They paid that money back.
We are not going to create that kind of economy by keeping a $2 trillion dollar a year deficit of federal spending, $50 million in unfunded entitlements and two unfunded wars with no way of measuring results or exit strategy, much less a way of profiting from them. Like morons, we pay our private contractors to rebuild the countries and they pay us nothing back. We are the charity police. You cannot beat any enemy when you spend trillions a year while they spend a couple of million that is donated. They are bleeding us dry and that strategy goes all the way back to Sun Tzu 500 B.C.
We need to end Federalism and move the bulk of power and tax money back to the states to manage who are bound by budgets. The states will keep what they want and can afford. The rest of this debt ridden nightmare gets tossed back to 1775 where it belongs. We left a bankrupt, over taxing, corporate run, foreign war exploiting highly centralized government for freedom. What was the point?
when ever guys like Mitch McConnell start using words like by-partisan every democrat should be on the look out for the slime under the rock......................Mitch has made it very clear that he hates democrats and will use all his power to take them out of the White House, this guy doesn't do by-partisan.
I don't believe a word Mitch says..........he has been lying to the democrats since 2008 and this is just another such effort.............he would have dems believe him and not take a good hard look at what he is proposing.........I suggest dems look very very very hard at anything Mitch has a hand in.
Better to suck it up now than the nation die.
Does not matter if the Repubs shut down the government or not..........they continue to get their paycheck....
It is only a vacation for all the Federal Employees. It is the federal government employees shutting it down and holding the taxpayers hostage to continue deficit spending. Neither party is doing it and it appears that is the only solution these chimps can figure out. Federal employees are the only ones in the country unaffected by the largest downturn in the economy since 1938. Their answer is to endlessly borrow (with interest) to support all their jobs at their current pay rates, current red carpet benefits and the best pensions on the planet.
Federal employees do not seem to grasp that when we borrow it literally doubles the prices of their wages, benefits and pensions. So if we borrow to support a $60K a year employee it costs the taxpayers $120K a year if we borrow that money for 20 years. Just to let you know how we do not pay off any of our debt we are still paying off money borrowed for the Vietnam years and have paid close to quadruple the principal....... and still going. You can see the insane amount we pay these people when the money is borrowed.
It is simply insanity. If this power was dispersed amongst all the states we would not have one very small group of employees holding the entire country hostage. The states flat cannot borrow to support these services and have no choice but to moderate them to match taxes collected. Highly centralized power connected to a borrowing system is a doomed concept.
Paid in gold.
How to grow the economy, remain competitive, and eliminate the deficit:
1. Legislatively remove the anti-trust exemption for insurance, The McCarran-Ferguson Act.
2.. Legislatively restrict the definition of "navigable waters of the United States."
3. Fund and begin construction of power generation and water supply projects necessary to meet future population and industrial demands.
4. Remove all geographic restrictions on oil and natural gas drilling, and use the power of federal money transfers to the States to prevent States and local governments from interfering with drilling.
5.. Remove environmental restrictions and environmental and social impact requirements for all infrastructure and utility construction for the next 10 years.
6.Cut Federal budget by 10% excluding defense, however, maintain current spending for infrastructure construction, repair and upgrade for the next 5 years.
7. Reduce corporate tax rates by 50%. Reduce Corporate tax rates by 70% on private utilities and transport companies.
8. Reinstitute significant tax and assistance payments for residential and commercial alternative energy instillations, particularly focusing on residential solar. Use Commerce Clause to force all electrical utilities to be reverse metering.
9. Subsidies the further development of electric and hybrid electric cars. Provide significant tax breaks and incentives for the purchase of same, particularly when combined with the purchase of a residential solar instillation within two years of one another.
10. Eliminate the Ethanol subsidy for any and all processes using foodstuffs. Redirect monies to nuclear and coal. Streamline regulation of new construction of nuclear power plants and provide incentives for same. Open Yucca Mountain as originally agreed.
11. Eliminate any power of the EPA to regulate Carbon.
12. Use the power of the Federal purse to eviscerate Kelo v. City of New London, 545 U.S. 469 (2005) and Tahoe-Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency, 535 U.S. 302 (2002),
13. Repeal the Community Reinvestment Act.
14. Hold congressional investigations into the roll of the Community Reinvestment Act, Freddie and Fannie in inflating demand and thus prices resulting in the collapse of the real estate market.
15. Build a wall embedded with sensors and toped with razor wire along both our borders, beginning with the southern one. In the name of national security remove all environmental restrictions and environmental and social impact requirements for the construction of same.
16 Pass legislation that all jurisdictions receiving federal monies of any sort are required to enforce all of the laws of the land, including enforcement of federal immigration laws.
17. Restrict the collective bargaining power of State civil service unions in line with the 1978 Federal Civil Service Reform Act
The biggest joke in this govt shutdown is that good old Barry can't do any extravagant spending anymore.
Seems like the Repubs cut his nuts.
We are so tired of you Fox news Tea baggers are like flies you always pestering people. How much do you get an hour from the Koch Brothers to beleive this crap that you are writing on the site
I saw the ad on Craig list where you can get a job to write crap on the internet all day for the koch brothers and this is what you are getting paid for. What I don't understand is why you want to take money from yourselves. the Koch brothers will cut your salary and fire you as soon as they get what they want or when your voice is no long effective. Good luck with your new job as employees of the Koch Brothers.
Unfortunately people have a bad misconception about Federal employees. We are for the most part, hardworking honest and conscientious workers. We have a few lazy, bad apples like every place else has. Congress holds us hostage with these negotiations. They put their pet bills and bull in with appropriations and fight over it every year. Is there pork? Sure there is. Congress usually puts it there. Lobbyists run Congress. Congress no longer really serves the people. And I don't see them missing their week off or their paychecks. Shut the Government down would cost millions to billions, plus people would miss out on services, plus its not like Congress is putting any savings (as if there are some) to the deficit. Our Congress has long been a major part of the problem.
One of the issues with federal employees is that a lot of the federal workers who have been in their jobs for a long time do not want to change and or use technology to improve what they do. When it comes to outdated processes that can be changed to lower the costs and take less time, no one is interested. The response you receive is "the way we do it works just fine". There is a lot of waste.
The republican MUST hold the line. If after two weeks, the democrats don't fall in line, give them two more weeks (with conditions). If they don't get on board, shut the government down.
One disaster after a next, what will happen next in land of Obama. It keeps happening.