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| Obama visits Capitol Hill in bid to patch over partisan divide amid budget cuts | Obama visits Capitol Hill in bid to patch over partisan divide amid budget cuts |
| (25 days later) | |
| Barack Obama kicked off a goodwill tour of Congress with a meeting of Senate Democrats on Tuesday as rival camps exposed the depth of the partisan divide on tax and spending. | Barack Obama kicked off a goodwill tour of Congress with a meeting of Senate Democrats on Tuesday as rival camps exposed the depth of the partisan divide on tax and spending. |
| Obama's 90-minute question-and-answer session with senators was the first of four visits he is making this week that are aimed at improving relations with Democrats and Republicans in Congress. | Obama's 90-minute question-and-answer session with senators was the first of four visits he is making this week that are aimed at improving relations with Democrats and Republicans in Congress. |
| Democratic senators coming out of the meeting were generally positive but expressed frustration that Obama had not spent more time consulting them in the past. They also made clear they remained opposed to giving ground to Republicans on welfare reforms, as Obama is proposing. | Democratic senators coming out of the meeting were generally positive but expressed frustration that Obama had not spent more time consulting them in the past. They also made clear they remained opposed to giving ground to Republicans on welfare reforms, as Obama is proposing. |
| Obama faces a tougher meeting on Wednesday when he meets House Republicans, many of them elected with the support of the Tea Party movement and who have proved to be the biggest opponents of deals with the White House. | Obama faces a tougher meeting on Wednesday when he meets House Republicans, many of them elected with the support of the Tea Party movement and who have proved to be the biggest opponents of deals with the White House. |
| The scale of Obama's task was obvious when Republican budget hawk Paul Ryan unveiled a House fiscal plan on Tuesday. Ryan claimed would balance the US budget in 10 years by cutting federal spending but without raising taxes. | The scale of Obama's task was obvious when Republican budget hawk Paul Ryan unveiled a House fiscal plan on Tuesday. Ryan claimed would balance the US budget in 10 years by cutting federal spending but without raising taxes. |
| Ryan, chairman of the House budget committee, presented his budget – which calls for the repeal of Obama's health reforms – as a starting point for negotiation with the Democrats. | Ryan, chairman of the House budget committee, presented his budget – which calls for the repeal of Obama's health reforms – as a starting point for negotiation with the Democrats. |
| But the White House rejected it out of hand. "The math just does not add up," the administration said in statement, describing it as "the wrong course for America". | But the White House rejected it out of hand. "The math just does not add up," the administration said in statement, describing it as "the wrong course for America". |
| Democrats in Congress dismissed Ryan's budget as "March madness". | Democrats in Congress dismissed Ryan's budget as "March madness". |
| The senior Democrat on the House budget committee, Chris Van Hollen, told Reuters Ryan's budget demonstrated how polarised Washington remains. "It shows the gulf we have to bridge is just as big as it ever was," he said. | The senior Democrat on the House budget committee, Chris Van Hollen, told Reuters Ryan's budget demonstrated how polarised Washington remains. "It shows the gulf we have to bridge is just as big as it ever was," he said. |
| The Democratic leader in the Senate, Harry Reid, speaking in the chamber, described Ryan's bill as "fraudulent", and protested it would offer new tax breaks for the wealthy while hitting those on welfare. | The Democratic leader in the Senate, Harry Reid, speaking in the chamber, described Ryan's bill as "fraudulent", and protested it would offer new tax breaks for the wealthy while hitting those on welfare. |
| Senate Democrats offered up an alternative budget that would include tax increases on the wealthy. | Senate Democrats offered up an alternative budget that would include tax increases on the wealthy. |
| Neither the Republican or Democrat budgets stand any chance of becoming legislation. | Neither the Republican or Democrat budgets stand any chance of becoming legislation. |
| The White House announced Tuesday that Obama will produce a budget of his own, "probably" in the week of 8 April. Obama, in his meeting with the senators, offered the merest hint of a budget compromise, one that would combine tax increases through closing loopholes, which are opposed by the Republicans, with reform of welfare programmes, opposed by Democrats. | The White House announced Tuesday that Obama will produce a budget of his own, "probably" in the week of 8 April. Obama, in his meeting with the senators, offered the merest hint of a budget compromise, one that would combine tax increases through closing loopholes, which are opposed by the Republicans, with reform of welfare programmes, opposed by Democrats. |
| Jay Carney, the White House press secretary, said the president still believed Democrats and Republicans could unite behind a balanced plan "to grow the economy and shrink the deficit by investing to create jobs, cutting wasteful spending, and strengthening programmes like Medicare and Medicaid. This approach will require both parties to compromise and make tough choices." | Jay Carney, the White House press secretary, said the president still believed Democrats and Republicans could unite behind a balanced plan "to grow the economy and shrink the deficit by investing to create jobs, cutting wasteful spending, and strengthening programmes like Medicare and Medicaid. This approach will require both parties to compromise and make tough choices." |
| But Carney added: "Deficit reduction that asks nothing from the wealthiest Americans has serious consequences for the middle class." | But Carney added: "Deficit reduction that asks nothing from the wealthiest Americans has serious consequences for the middle class." |
| As well as a budget stand-off that threatens to close down the federal government, Obama also discussed with Senate Democrats his second-term hopes for legislation on immigration reform and gun control. | As well as a budget stand-off that threatens to close down the federal government, Obama also discussed with Senate Democrats his second-term hopes for legislation on immigration reform and gun control. |
| Earlier, at a press conference on Capitol Hill, Ryan proposed to cut spending by $5.7tn and reduce the top rate of tax to 25%. It would bring federal spending down from 22.2% of gross domestic product to 19.1% by 2023. | Earlier, at a press conference on Capitol Hill, Ryan proposed to cut spending by $5.7tn and reduce the top rate of tax to 25%. It would bring federal spending down from 22.2% of gross domestic product to 19.1% by 2023. |
| It would reduce spending in 2015 to $3.48tn, $40bn less than the government spent in 2012. | It would reduce spending in 2015 to $3.48tn, $40bn less than the government spent in 2012. |
| The budget plan is similar to those presented by Ryan and the House Republicans in the past two years. The main difference is an acceptance of tax rises on the wealthy that came into force in the fiscal cliff deal. Asked about acceptance of the tax increases, Ryan said: "We are not going to re-fight the past." | The budget plan is similar to those presented by Ryan and the House Republicans in the past two years. The main difference is an acceptance of tax rises on the wealthy that came into force in the fiscal cliff deal. Asked about acceptance of the tax increases, Ryan said: "We are not going to re-fight the past." |
| He is also proposing $560.2bn in defence spending in the fiscal year that begins in October and $6tn in defence cuts over a decade. This contrasts with the pledge to increase defence spending supported by Ryan while vice-presidential candidate in last year's White House race. | He is also proposing $560.2bn in defence spending in the fiscal year that begins in October and $6tn in defence cuts over a decade. This contrasts with the pledge to increase defence spending supported by Ryan while vice-presidential candidate in last year's White House race. |
| The budget is based on the repeal the Affordable Care Act, also known as Obamacare. Ryan predicted the law would prove so unpopular it will have to be repealed. "We don't like this law. This is why we're proposing to repeal this law in the budget. We believe that this law is going to collapse under its own weight," he said. | The budget is based on the repeal the Affordable Care Act, also known as Obamacare. Ryan predicted the law would prove so unpopular it will have to be repealed. "We don't like this law. This is why we're proposing to repeal this law in the budget. We believe that this law is going to collapse under its own weight," he said. |
| Instead, he is proposing reform of existing Medicaid and Medicare programmes. | Instead, he is proposing reform of existing Medicaid and Medicare programmes. |
| Ryan argued, as he has done in the past, that unless the country takes serious steps to reduce the deficit, it will be the next generation that suffers. "You can't continue to kick the can down the road," he said. "We know we are condemning the next generation to an inferior standard of living." | Ryan argued, as he has done in the past, that unless the country takes serious steps to reduce the deficit, it will be the next generation that suffers. "You can't continue to kick the can down the road," he said. "We know we are condemning the next generation to an inferior standard of living." |
| He tacitly acknowledged his budget has no chance of going anywhere when he invited the president and the Senate Democrats to present counter-plans. "If you do not like the way we are balancing the budget, show us how to balance our budget," said Ryan, who met Obama last week as part of Obama's new charm offensive on Capitol Hill. | He tacitly acknowledged his budget has no chance of going anywhere when he invited the president and the Senate Democrats to present counter-plans. "If you do not like the way we are balancing the budget, show us how to balance our budget," said Ryan, who met Obama last week as part of Obama's new charm offensive on Capitol Hill. |
| The Democratic Senate budget proposed to cut the deficit by $1.85tn over a decade through a combination of tax rises – achieved through closing tax loopholes for corporations and for the rich – and spending cuts. It proposes $100bn in spending on infrastructure to create more jobs and to pay for job training. | The Democratic Senate budget proposed to cut the deficit by $1.85tn over a decade through a combination of tax rises – achieved through closing tax loopholes for corporations and for the rich – and spending cuts. It proposes $100bn in spending on infrastructure to create more jobs and to pay for job training. |
| The cuts would amount to $975bn, including $240bn in military spending. | The cuts would amount to $975bn, including $240bn in military spending. |
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