By
updated 5/24/2011 6:52:08 PM ET 2011-05-24T22:52:08

Vice President Joe Biden said Tuesday that new tax revenues need to be part of any agreement with Republicans on legislation to raise the limit on how much money the government can borrow to continue to meet its obligations.

  1. Other political news of note
    1. Animated Boehner: 'There's nothing complex about the Keystone Pipeline!'

      House Speaker John Boehner became animated Tuesday over the proposed Keystone Pipeline, castigating the Obama administration for not having approved the project yet.

    2. Budget deficits shrinking but set to grow after 2015
    3. Senate readies another volley on unemployment aid
    4. Obama faces Syria standstill
    5. Fluke files to run in California

"I've made it clear today ... revenues have to be in the deal," Biden told reporters after meeting with GOP negotiators.

The vice president's pronouncement puts the Obama administration at odds with Republicans, who insist tax increases are "off the table." Republicans declined to comment as they left the meeting.

The vice president also says talks are on pace to produce deficit cuts exceeding $1 trillion and that the talks will extend to procedural mechanisms known as "triggers" to force further automatic deficit cuts of up to $4 trillion if lawmakers are unable to come up with the savings in future legislation.

Story: Cantor: Obama, not Biden, must seal debt deal

Biden is the lead negotiator for the administration on legislation combining the debt limit increase with spending cuts demanded by Republicans.

"We're making progress," Biden said. "Our Republican friends and the Democrats think we're making progress. We're confident that if we keep on this pace we can get to relatively large numbers."

The negotiations are expected to take weeks as Congress faces an Aug. 2 deadline to avoid a first-ever, market-rattling default on U.S. obligations. It's a politically perilous vote made more difficult by the influx of tea party-backed Republicans who propelled the GOP into control of the House.

President Barack Obama has set out a goal of cutting the deficit by $4 trillion over the next 12 years. Biden said the initial wave of cuts would be less but that future legislation could meet the goal.

"I think we're in a position where we'll be able to get well above a trillion dollars ... in terms of what would be a down payment," Biden said. "We're going to be discussing trigger mechanisms and how do we do that to get to $4 trillion."

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Video: House Budget chair: Nobody wants default

  1. Transcript of: House Budget chair: Nobody wants default

    MR. GREGORY: All right. Before you go, what about the debt ceiling negotiations? Do you think they'll be a deal, or will this go down to the wire ?

    REP. RYAN: Well, first of all, I think there will be a deal, and it'll probably take a while. Look, we have till August. It's May right now. This is going to take time. Our position's really simple. For every dollar the president wants to raise the debt limit, we're saying let's cut more than a dollar's worth of spending. He's asked for a $2 trillion increase in the debt limit, we've laid out $6.2 trillion in spending cuts. So we can show the president plenty of ways and areas to cut more than a dollar's worth of spending and it's very important for the credit markets, for our economy to show that we're going to get this situation under control, that we're going to get the debt stabilized and get spending under control, as we deal with this debt limit. Nobody wants default to happen, but at the same time, we don't want to rubber stamp just the debt limit increase that shows we're not getting our situation under control.

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments