White House Formally Embraces Reid Deficit Plan

Jul 25, 2011 3:28pm

Accusing House Republicans of walking away from deficit negotiations “after insisting that the budget be balanced on the backs of seniors and the middle class,” White House press secretary Jay Carney issued a statement embracing the deficit reduction approach of Senate Majority Leader Harry Reid, D-Nev., which he calls  “a responsible compromise that cuts spending in a way that protects critical investments and does not harm the economic recovery.”

Reid’s bill would cut more than $2 trillion in spending, including money saved through the drawing down of the wars in Iraq and Afghanistan – a technique Republicans assail as gimmickry though the House GOP budget offered by Rep. Paul Ryan, R-Wisc., included the same savings.

Earlier today President Obama spoke to the National Council of La Raza saying “we can’t just close our deficits by cutting spending. … Not only is it not fair if all of this is done on the backs of middle-class families and poor families, it doesn’t make sense.  It may sound good to save a lot of money over the next five years, but not if we sacrifice our future for the next fifty.”

The Reid plan contains no tax increases. Carney today said it would “make a meaningful down payment in addressing our fiscal challenge, and we could continue to work together to build on it with a balanced approach to deficit reduction that includes additional spending reforms and closing tax loopholes for corporations, millionaires and billionaires. “

-Jake Tapper (@jaketapper)

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