
Originally Posted by
The Fiscal Times
A senior administration official said the White House team recognized that the two offers were coalescing and that the time for a decision was at hand. People asked themselves, the official said: Is this something we can sell? Is this a deal we can live with?
At the Capitol, the Republicans waited. Shortly after 6 p.m., Daley called Boehner’s office and said an update was on the way. None came, and four hours later, Jackson told his staff to go home. The White House, he said, was continuing to “massage their counter on all sections.”
The next morning, Nabors called Jackson with an ominous question: Have you heard about the Gang of Six? Nabors was using the Beltway shorthand for a group of senators — conservatives and liberals — who had been working for months on a long-range deficit-reduction plan based on recommendations from a fiscal commission Obama appointed the previous year.
The group included Sen. Richard J. Durbin (D-Ill.), a close ally of the White House, and Sen. Saxby Chambliss (R-Ga.), one of Boehner’s dearest friends. Another participant, Sen. Tom Coburn (R-Okla.), was close to Obama and Boehner. The senators said they kept Boehner and administration officials informed about their work. They said the White House had been pressing them for months to put something out, believing that getting a few Republicans to sign on to any tax increase would build momentum.
“The fact that we had Republicans willing to discuss revenue was a breakthrough,” Durbin said. “That’s why [the White House]
thought it might help move the conversation forward in the House.”
The Gang of Six was unable to seal its own deal. But that morning — a Tuesday — they finally revealed their work at a closed-door briefing for 64 fellow senators. Coming at that moment, it had an unintended effect.
Desperate to resolve the debt-limit deadlock, senators enthusiastically and publicly latched on to the proposal, which included more taxes and stronger protections for the poor and elderly than the still-secret Obama-Boehner framework. Dozens of senators emerged from the briefing praising the group’s work, including Republicans such as Lamar Alexander (Tenn.), then the third-ranking member of his party’s leadership team. The Gang of Six had “come to a bipartisan agreement,” Alexander told reporters, “and I support it.”
At the White House, Obama showed equal enthusiasm. He made a rare appearance in the White House pressroom, surprising reporters who had been awaiting the regular briefing from press secretary Jay Carney. As Carney stood to the side, the president hailed the plan as “broadly consistent with what we’ve been working on here in the White House and with the presentations that I have made to the leadership when they have come over here.”
In private, however, he and his aides were alarmed. The emerging deal with Boehner looked timid by comparison.
“The Democratic leaders already thought we were idiot negotiators,” Daley said. “So I called Barry [Jackson] and said, ‘What are we going to do here? How are we going to sell Democrats to take $800 billion when Republican senators have signed on to” nearly $2 trillion?
Daley added,“I don’t think it was a mischaracterization on our part to say we’d be beat up miserably by Democrats who thought we got out-negotiated.”
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The Republicans describe it differently. The news from the White House, they say, was a “tough blow” to Boehner, who saw the push for additional taxes as tantamount to Obama violating a “gentleman’s agreement” on the broad outlines of a plan for which the speaker was already taking heat from some in his ranks.
By Wednesday morning, as the Obama and Boehner sides gathered again in the Oval Office, the optimism of Sunday had disintegrated. Vice President Biden, a skeptic of restarting talks with Boehner after the first round collapsed, was there. There appeared to be a very different president in attendance, as well.
Excited and upbeat three days earlier, Obama now was stern and lecturing. According to notes taken by GOP aides, he opened by complaining about Boehner’s demand for $200 billion in Medicaid cuts, a persistent point of contention. Then he began to talk about taxes, saying the Gang of Six “makes things more complicated.” The White House would need more tax revenue or smaller health-care cuts.
Boehner opened by expressing continued support for a big deal. But he told Obama that Republicans could not sign off on $1.2 trillion in new taxes. “I cannot go there,” he said. Nor could he sell $800 billion in tax increases without cuts to federal health programs, the biggest drivers of future borrowing.
Annoyed, Obama invoked Boehner’s personal friendship with Chambliss, a member of the Gang of Six, warning that Democrats would never support the package under discussion when “your friend Saxby” and other Republicans were willing to stomach as much as $2 trillion in new taxes. Negotiations deteriorated from there.