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to reach a deal. " I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward, " Boehner said in a letter to members of the House of Representatives. In a hastily announced public appearance, angrily assailed Boehner for quitting the table and said he was calling him and other top congressional leaders to the White House for talks at 11: 00 am ( 1500 GMT) Saturday. " We have run out time and they are going to have to explain to me how it is that we are going to avoid default. They can come up with any plans that they want and bring them up here and we will work on them, " the president said. " The only bottom line I have is that we have to extend this debt ceiling through the next election, " said Obama, whose bid for a second term in November 2012 will turn on his handling of the sour US economy.
Boehner' s move cast doubt on the fate of efforts to raise the $ 14. 3 trillion US debt limit by August 2, when the cash- strapped government of the world' s richest nation will run out of money to pay its bills. A House Republican leadership aide told reporters on condition of anonymity that Boehner believed he needed to have a detailed plan to present to House Republicans by Monday. The aide also said that the two sides had been on track for a package that would have cut some $ 3- $ 3.
5 trillion over 10 years. Washington hit its debt ceiling on May 16 but has used spending and accounting adjustments, as well as higher- than- expected tax receipts, to pay its bills and continue operating up to the deadline Finance and business leaders have warned failure to raise the US debt ceiling by then would send shock waves through the world economy, while Obama has predicted a default would trigger economic " Armageddon. " Obama and Boehner were at odds on a range of issues, but a key sticking point was the White House' s push for increasing tax revenues from the rich and wealthy corporations, something Republicans fiercely opposed. " A deal was never reached, and was never really close. In the end, we couldn' t connect. Not because of different personalities, but because of different visions for our country, " the speaker said in the letter. " The president is emphatic that taxes have to be raised.
As a former small businessman, I know tax increase destroy jobs. " Ahead of the announcement, met in Mc.
Connell' s office. A House Republican leadership aide said they had been briefed on the decision, which Boehner took Friday.
Mc. Connell said in a statement it was " disappointing" that the White House talks had failed to reach an agreement but that congressional leaders would now " develop a solution that will prevent default, without job killing tax hikes, while substantially reducing Washington spending. " " 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, " said Mc. Connell.
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