Republican Invites Obama to Capitol for Debt Talks

Posted June 30th, 2011 at 12:00 pm (UTC-5)
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The top Senate Republican has invited the president to Capitol Hill to discuss stalled efforts on cutting the government deficit and raising the U.S. debt ceiling to prevent a default on the nation’s loans.

Mitch McConnell said Thursday that President Barack Obama should hear directly from Republican lawmakers about why the president’s call to eliminate tax breaks for the wealthy will not win congressional approval.

At the White House Wednesday, Mr. Obama challenged Republicans to increase tax revenue from the wealthy to reduce the nation’s $1.4 trillion budget deficit. He said millionaires and billionaires must pay more taxes, and that big oil companies and corporate jet owners should not enjoy special tax breaks.

Senate Majority Leader Harry Reid said Thursday the Senate is canceling a holiday recess next week to concentrate on the budget talks.

Reid said lawmakers will take a holiday July 4 for Independence Day, and return to work Tuesday, rather than taking the week off as had been scheduled. He said if the U.S. defaults on its loans, it could push the economy into a “full-blown depression.”

President Obama held talks earlier this week with Senators Reid and McConnell, though no progress was made on restarting joint negotiating sessions.

Talks stalled last week after Republican lawmakers walked out of talks chaired by Vice President Joe Biden. They said the White House was using the crisis to push for tax increases.

The United States risks defaulting on its $14.3 trillion national debt unless Congress acts to raise the legal limit on the amount the U.S. government is allowed to borrow by August 2.

Republicans, who control the House of Representatives, say they will not raise the debt ceiling without deep spending cuts. Democrats say Republicans are holding the debt ceiling vote hostage to an ultra-conservative fiscal agenda the Republicans could never enact on their own.