Obama’s Hope

During the meeting, Obama voiced hope that Congress would “reach some kind of grand bargain” on spending, entitlements and revenue, Harkin said. He and several other Democrats urged Obama to avoid “some kind of grand bargain that pulls the rug out from under the elderly, or our sick, our needy.”

Louisiana Senator Mary Landrieu, a Democrat, said Obama “was very optimistic about working with Democrats and Republicans to give the country a path forward for growth.” Still, the House and Senate plans present “a very stark choice,” she said.

The Senate Budget Committee plans to spend today and tomorrow working on its plan. The starting point includes $1 trillion in additional tax increases on the wealthy and on corporations over the next 10 years, $500 billion in domestic budget cuts and a $240 billion reduction in projected defense spending, according to a Democrat familiar with the plan.

“My goal is not to chase a balanced budget just for the sake of balance,” Obama said in an interview broadcast today on ABC’s “Good Morning America.” “My goal is how do we grow the economy, put people back to work. And if we do that, we’re going to be bringing in more revenue.”

Party Differences

The difference between the Republican and Democratic approach to budgeting is highlighted by how each would allocate added revenue coming from elimination of tax exemptions.

Ryan’s plan would use new revenue to lower tax rates on individuals and corporations as part of a broader tax overhaul. Murray’s plan would apply savings from ending tax breaks toward $1.85 trillion in deficit reduction over a decade, said the Democrat familiar with it, speaking on condition of anonymity.

“It’s a very distinct contrast,” said Idaho Senator Mike Crapo, a Republican member of the Senate Budget Committee. “It’s discouraging that we are continuing the age-old debate over whether to tax and spend or whether to put into place the kinds of spending restraints that will get us on a pathway to a balanced budget and the kind of tax reforms that will create a pro-growth economy,” he said in an interview.

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