(Image source: Fox News)

BY STEVEN SPARKMAN

ANCHOR CHRISTIAN BRYANT

Before President Obama left for a diplomatic tour of southeast Asia, he began a different kind of diplomatic work a little closer to home.

“President Obama meeting with Congressional leaders on the so-called fiscal cliff. So are we looking at a possible compromise, or is the U.S. economy poised for another crisis?” (Video via Fox News)

The meeting took place behind closed doors, but a source tells CNN it went surprisingly well — no fireworks, no political grandstanding.

“When the president raised (the issue of increasing) revenue, there was no, ‘no, we’re not moving we’re not doing that,’ and when Republicans raised entitlement reform the president agreed it was needed as part of package that included revenue...”

Entitlement reform seems to be the big issue to come out of the meeting, with Democrats and Republicans signalling a willingness to compromise. The biggest problem — Medicare, which, with rising healthcare costs, is expected to run out of funding in 2024.

But the New York Times’ Paul Krugman says the most popular Medicare reform — raising the retirement age — would be a harsh blow to seniors without any real budget payoff.

“The federal government would save only a small amount of money, because younger seniors are relatively healthy and hence low-cost. Meanwhile, however, those seniors would face sharply higher out-of-pocket costs. How could this trade-off be considered good policy?”

But the realities of DC politics means some kind of entitlement reform might be necessary to get support behind a budget deal. In the end, a writer for the Daily Beast tells MSNBC:

“I do think the president is going to make a deal that his base will not like, but the Republicans have to do the same thing. It’s not going to be a real compromise unless there are people who are angry on both sides.”

The president will meet with Congressional leaders again the week after Thanksgiving to continue negotiations.

Fiscal Cliff Talks Start on Positive Note

by Steven Sparkman
0
Sources:Fox NewsCNN
Transcript
Nov 17, 2012

Fiscal Cliff Talks Start on Positive Note

 

(Image source: Fox News)

BY STEVEN SPARKMAN

ANCHOR CHRISTIAN BRYANT

Before President Obama left for a diplomatic tour of southeast Asia, he began a different kind of diplomatic work a little closer to home.

“President Obama meeting with Congressional leaders on the so-called fiscal cliff. So are we looking at a possible compromise, or is the U.S. economy poised for another crisis?” (Video via Fox News)

The meeting took place behind closed doors, but a source tells CNN it went surprisingly well — no fireworks, no political grandstanding.

“When the president raised (the issue of increasing) revenue, there was no, ‘no, we’re not moving we’re not doing that,’ and when Republicans raised entitlement reform the president agreed it was needed as part of package that included revenue...”

Entitlement reform seems to be the big issue to come out of the meeting, with Democrats and Republicans signalling a willingness to compromise. The biggest problem — Medicare, which, with rising healthcare costs, is expected to run out of funding in 2024.

But the New York Times’ Paul Krugman says the most popular Medicare reform — raising the retirement age — would be a harsh blow to seniors without any real budget payoff.

“The federal government would save only a small amount of money, because younger seniors are relatively healthy and hence low-cost. Meanwhile, however, those seniors would face sharply higher out-of-pocket costs. How could this trade-off be considered good policy?”

But the realities of DC politics means some kind of entitlement reform might be necessary to get support behind a budget deal. In the end, a writer for the Daily Beast tells MSNBC:

“I do think the president is going to make a deal that his base will not like, but the Republicans have to do the same thing. It’s not going to be a real compromise unless there are people who are angry on both sides.”

The president will meet with Congressional leaders again the week after Thanksgiving to continue negotiations.

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