Obama: "nothing can be prohibited" budget - CBS News

(AP)

WASHINGTON - President Barack Obama said Saturday that "nothing can be prohibited" in the budget debate - even if the Republicans have said are increases in taxes. The President said that any tax relief and the Federal program must come under surveillance.

With a period of 2 August imminent raise government borrowing limit, the President used his weekly radio and Internet address to call the Congress to find a market.

He also renewed his call for Congress to eliminate some tax breaks for the rich in an agreement. Republicans want deep spending cuts without any increase in taxes while Mr. Obama and Democrats seek what they term a "balanced" approach That means one which also includes new revenue in the form of an increase in taxes, for some, while the Democrats approach not too from using phrases like "tax increases" or "higher taxes".

"Now, it would be good if we could keep any tax relief, but we can't," said the President Obama. "Because if one chooses to keep these tax breaks for millionaires and billionaires, or hedge fund managers and owners of the jets for business or for oil and gas in the huge profits without our help the business - while we will have to make even deeper cuts elsewhere.".

"Nothing can be banned, including costs in the tax code, particularly the loopholes that benefit very few individuals and companies, said the President."

Legislators and the administration seek cuts deficit to the tune of 2.4 billion during the next decade to compensate for a similar increase in the debt limit - that is large enough to keep the Government afloat after the election of November 2012. The debt limit is currently $ 14.3 billion, and the Secretary of the Treasury Timothy Geithner, said that it must be raised by 2 August to avoid default on financial obligations of the Government for the first time in the history of the country.

Both sides dug in their positions, it is not known how to compromise will be reached, even if the Senate canceled its plans to take a fourth of July recess the week next to remain in Washington and work on the problem.

President Obama expressed confidence an agreement could be made and instead of singling out Republicans as obstacles to the agreement, he directed his message to the Democrats and Republicans alike.

"We have to reduce the deficit, but we can do that all by making investments in education, research and technology that really create jobs,", said the President. "We live beyond our means while still investing in our future." This is what we must do. "And I am confident that Democrats and Republicans in Congress can find a way to give some ground, making difficult choices and put their shoulders to wheel to get this done."

Republicans used their weekly address to criticize Obama on the economy and renew their opposition to tax increases.

"The President and Congressional Democrats should recognize that their game plan does not work." "It is time to recognize that more Government and an increase in fees is not the answer to our problem," said Senator Dan Coats, R - Ind. "It's time for bold action and a new plan to address our current crisis."

Coats, said it was time for the Government to "stop spending money we do not have and to adopt policies that will make our economy and get Americans back to work.".

Government of Minnesota shuts down on a budget impasse - Los Angeles Times

The State Government closure had an immediate effect on the Minnesota Zoo, who was among several government entities, pleading for a special dispensation. (Andy King, Reuters / July 1, 2011)In a year of political confusion of budget deficits deep, Minnesota Friday became the first State to close his Government after the Republicans and the Democrats remained in disagreement over whether to raise taxes for the rich or to reduce government spending.

Democratic Governor Mark Dayton and the GOP controlled legislature failed to solve the deficit of $ 5 billion of the State at the beginning of the exercise Friday. Without a budget in place, the State largely operations cease, stopping payroll for approximately 20,000 employees of the State and State Parks form just before the end of busy holiday week.

Dayton wants to increase taxes for individuals earning more than $ 1,000,000 per year, while Parliament provides for deeper cuts in government programs.

"We divided the Government and a Governor who believes that he has mandate to raise taxes and increase spending, and we have a legislature who believes that we should cut taxes and reduce expenses, said House Leader of the majority Matt Dean." "It is a sort of microcosm, in country, of what is happening in the whole of the nation".

Democrats and Republicans fought way across the country on how to fill deficits. In some States, budget negotiations went to the wire of the financial year ended.

In Connecticut, Parliament early Friday approved a budget that allowed Democratic Governor Dannel P. Malloy to lay off thousands of workers of the State for a deficit of $ 1.6 billion. In California, after the first budget that sent the legislature veto Governor Jerry Brown has signed a budget Thursday that deep cuts in higher education and elsewhere and has assumed billions of dollars in new revenues to avoid spending reductions, perhaps including trimming days of the school year.

In Washington, D.C., the political divide on the national deficit is similar. Republicans who control the House of representatives refuse to raise the debt ceiling unless Democrats agree to a package of cuts and not these increases in spending. Many economists believe that failed to raise the ceiling by 2 August could send the country into a new recession.

Party leaders quickly released Minnesota statements Friday blaming each other of the closure.

"Republicans put of millionaires in Minnesota and he has led our Government of the State of judgment to protect a handful of rich residents of our State, said Ken Martin, President of the democratic-Farmer-Labor Party." "Their choice to force a closure is myopic, self-centered and shameful".

Chairman of the Republican Party of Minnesota Tony Sutton shot back: "what a piece of work is Governor Dayton." It is committed not to close the State on an increase in the tax on the campaign trail. Tonight he breaks that promise, making the closure of its closure. »

The retired judge who was appointed master special to oversee the closure decided that all non-essential operations must cease until a budget is approved. Prisons of the State and execution and the fire-fighting agencies remain operational. Institutions such as shelters for battered women and the Minnesota Zoo pleaded Friday for a special stay open exemption.

Dayton Office told journalists to Minnesota was unlikely, that he could negotiate with the Republicans until after the end of week of vacation, a time when lawmakers are sure to receive a say scandalised constituents.

"People are angry," said Kathryn Pearson, political scientist at the University of Minnesota. "But the political bases are not necessarily urging compromise." They urge their representatives to hold firm. »

Republicans offered a two-page budget draft "lights on" which would have kept the operational state for 10 additional days. Dayton has rejected this, saying that he wanted a full budget. In a late-night Thursday press conference, the Governor has blamed Republicans for the impasse. The two parties are spaced $ 1.4 billion.

"Instead of the imposition of their friends, they would prefer highly damaging cuts to health care, K - 12 and higher education, State and local public safety, transportation and other essential services," Dayton said GOP lawmakers.

Dayton was closely won the election year last on a platform of more taxes for the rich. Republicans took the statehouse at the same time, committing step of new taxes and deep reductions in government spending.

Pearson said that Dayton can have the upper hand, only because it is not for his re-election until 2014 and legislators must face voters in next year. "More that goes," she said, "the more it will be an issue in the November of 2012".

Nicholas.Riccardi@LAtimes.com

Budget Impasse hardening despite the decision by the Senate to cancel break - Fox News

The Senate has pencil in extra time to work on a large budget before a period of 2 August, but instead to move to the workplace both sides are digging hard on their conditions of deficit reduction.

Tension threatens to keep the negotiations collapsed when the Republican negotiators left last week offline. GOP lawmakers want major budgetary expenditure under an agreement to raise the ceiling of the debt-to-something that the administration of Obama, said should occur before the August deadline to avoid the risk of failure - and left the discussion out of concern that the Democrats were pushing too hard for tax hikes.

But while Democrats said they were ready to accept certain budgetary expenditure, the Obama President clearly at his Wednesday Press Conference that he will continue to push for the increase of taxes under an agreement.

The Senate had acceded to a request presidential Thursday - the House set aside its July Fourth recess and ready to return to session from Tuesday, after that Obama complained that Congress was not so sharply that he was.

But there was no indication that both parties had made progress in the resolution of their Chief disagreement.

When the Senate Leader of the minority Mitch McConnell, R - KY, invited Obama to meet with legislators on Capitol Hill GOP on Thursday afternoon, the White House pushed back.

A not only Obama topic in Philadelphia Thursday to attend democratic fundraising activities, press attached White House Jay Carney rejected invitation McConnell, saying: he had "guest simply the President to hear what would not pass.". This is not a helpful conversation. »

Later, donor, Obama reiterated its call for spending cuts and new tax revenues.

"The truth is that you could be on the back of a napkin how to get this thing done," he said. "The issue is political will."

Legislators could even not so much time to reach an agreement as the administration. A democratic official with knowledge of the debt talks said an agreement is necessary in two to three weeks to allow procedural hurdles.

"If the markets are beginning to respond to, and then we waited a day too long," said official Fox News, noting that the House led the GOP has a rule for three days for the success of the Bills.

The official said an agreement is needed by July 22, nearly two weeks earlier than the date limit of the Treasury Board, although some on Capitol Hill have called date Treasury a tactical scare to push an agreement.

The Secretary of the Treasury Tim Geithner has extended the time three times in the past.

The issues of the debate was underlined at the Executive a Standard & Poor said the credit rating agency would give the Government its rating lowest legislators should fail to agree on the debt limit lift and cause a federal default.

Should that works, that s & P would decrease the rating U.S. AAA to D, John Chambers, CEO of sovereign ratings for the company, said Bloomberg Television.

Obama said that in the talks, the Republican and democratic negotiators found over a potential $ 1 trillion in spending cuts over the next decade, including reductions driven by the two parties.

The White House also offers approximately $ 400 billion higher tax revenues. The Republicans do not want to tax increases and cuts in spending more important than the Democrats have proposed.

Increase the current limit of debt by about $ 2.4 trillion was to carry the Government until the end of 2012, thus avoiding another vote of the Congress on the issue until after the next presidential and legislative elections. Republicans insisted on any extension of coupling at least an equal amount of budgetary savings.

The Associated Press contributed to this report.

Government of Minnesota shuts down on the budget deficit - Washington Post

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California has a balanced budget. Governor Jerry Brown win or lose? -Christian Science Monitor

Los Angeles

Long journey to California for a balanced State budget is completed.

Skip to the next paragraph

And Governor Jerry Brown (D), which won top honors for his plain talk about the painful measures in store for Californians that they started that way and has spent a lot of his political capital on the road, sign, say analysts.

Ultimately, he has what he wanted?

The rosiest of assessments is that he was as much as he could, but it does not appear to be many. The budget that Parliament approved Tuesday does not include one of the extensions of tax that he wanted to help California meet its shortfall, relying instead on reductions in expenditure and the assumption that economic growth will lead to $ 4 billion in new revenues.

And, in a scenario disaster, if the economic recovery is insufficient, the budget provides for a mechanism of major service cuts offset non-existent revenues. This could indeed be expensive.

"He could not see if good... If the revenues are very optimistic assumptions, [and] cuts as a result be unpopular," said Jack Pitney, Professor of Government at Claremont McKenna College. "It's like treating chronic with candy bars fatigue and caffeine."

Republicans immediately focused on this manna of estimated revenue, with the Senate, Vice President of the Budget Committee Bob Huff as a "wand that Harry Potter would be proud to handle," according to the Los Angeles Times.

Governor Brown has been at the Centre of the budgetary debate since the entry into service in January, after winning an election based largely on its promise to turn the State around to economically.

Last week, he made national headlines after veto first budget periods of California in a quarter century. State controller John Chiang then made the first use of proposal 25, a citizen initiative November mandating statutory remuneration for a deadline missed budget.

But estimates of the final budget deal with the appeal in question if it was all applies to Brown.

"Brown out as a winner and a loser," said Robert Stern, President of the Center for governmental studies. Brown is a biggest loser because he and the Democratic majority legislature are "using gadgets to call the budget balanced, and it's a budget of all cuts with no tax extensions", he said.

However, "in view of the requirement to vote of two-thirds [for an increase in the tax] and the intransigence of the Republicans on tax extensions, it is perhaps the best, he could have understood," adds Mr. Stern.

It all depends on what happens to the economy in the coming months. After much speculation that the US economy would certainly improve in the second half of the year, the Federal Reserve last week removed on this assessment.

Analysis: California Budget wins approval but no applause - Reuters

By Jim Christie and Peter Henderson

SACRAMENTO AND SAN FRANCISCO. Wed, June 29, 2011 5: 27 am EDT

SACRAMENTO and SAN FRANCISCO (Reuters) - California is taking a first step shedding his reputation for fiscal mediocrity, adopting a budget in time for the first time in years.

If a compromise is something that no one likes, California reached a: Governor Jerry Brown, political parties and even investors have much to complain in the expenditure plan.

But the bottom line is that Government of the State of the has Golden with a budget of smaller holes that usual in place before its fiscal year begins on Friday. A bonus is important that the State's economy improves, especially for the rich, who pays his main source of income, the income tax.

Voters using the discredited initiative process can claim that they define the circumstances in progress.

Proposal 25 adopted last November, allowing the legislature to enact a budget non-hausse of taxes by a simple majority, which the Democrats were in the two chambers.

Who robbed Republican minority in the legislature for its ability to take any hostage the budget, leaving them with a right of veto on these increases, that they used.

A mixture of consternation and the satisfaction of all sides, the budget avoids these increases, is balanced if the economy improves and will force even deeper cuts in popular programs fail to state economic hopes. And it is ready before the start of the new fiscal year.

Many attribute the success of a simple change of 25 Prop: it cut the pay of the legislators when they do not have to pass a budget balanced within mid-June.

"You must feel that the public received a special thrill and reaction, it has caused," said the Poll chief Mark DiCamillo field. Californians did not only cuts of the magnitude in the budget, but they did not want higher taxes, either.

"They wanted something for nothing, and that they will get the part"for nothing"," DiCamillo said.

The budget pending closure of Brown signature failure of 10 billion dollars about spending cuts, fee, a few timely shots and, especially, with 4 billion $ in better than expected earnings.

STEP OF GUARANTEES

Critics say leaders will be decline to make the cuts so hard income fails to materialize the school.

"It happened so often,", said Mayor Chuck Reed of San José, the third largest city in California.

"Everything seemed very convenient reach with $ 4 billion", said Jay Goldstone, chief operating officer of the second largest city of California, San Diego. "I do not see this kind of improvement that generates this kind of money.".

The Government of the State began this year with a deficit of more than 25 billion dollars. Brown and legislators pared it approximately in half with deep budget spending, other movements and the improvement in earnings before the budget plan.

More big changes at stake in the State, through other initiatives in recent years. Voters have approved redistricting by a Committee headed by citizen who creates many more competitive racing. Primary State will act as the first rounds of the election, so the getters vote two above, any party, will face in the final.

Jack Pitney, Professor of Government at Claremont McKenna College, said that the budget plan did not address the roots for a long time of pain - types of structural changes, the two main parties were requested.

But he predicted that the budget would be popular because it struck a large number of goals of the voters.

"It involves the kind of cuts deep people spoke a few months ago, allows tax increases forfeiture and allows people to hit the beach without having to worry about the budget", he said.

(Editing by Jackie Frank)

McConnell moves with caution the budget - Politico deal

Meeting of the White House on Monday between President Barack Obama and the Senate Leader of the minority Mitch McConnell is an important first test for the two men, each trying to shoot the other to the limit of ceiling for debt in August.

Before the Republican walkout, last Thursday, budget negotiations, led by Vice President Joe Biden had made significant progress towards a promising package savings in the range of $ 1.6 billion to 1.7 billion over 10 years, not counting the reduced interest expenses.

Continue as read the Democrats support simple arithmetic dictates that revenues should be added to help fill gaps and target trillion-plus $2. But having established a Foundation, the larger question is whether both parties should move forward to a much broader encompassing over reforms Medicare and tax revenues.

Among the GOP, McConnell was stronger that the President plays a more important role. But Kentucky Senator is under pressure to provide more, where he is after leaving the bulk of the work to the House Republican and Chairman John Boehner of Ohio.

So far, McConnell has been realistic to use the 2012 elections to consolidate their power and eventually to regain control of the Senate and prudent, intelligent, partisan whose instinct is to think small, to protect themselves against criticism of tea party.

He rejected the tax revenues - including the faults of closure or to terminate grants tax - to get an agreement, then promised to punish the Democrats in the Senate by forcing them to raise the debt only this summer of ceiling, if no agreement is reached. And for the inconvenience of the House GOP leaders, McConnell has fostered a more gradual approach - which would avoid default in August but also require at least a second round of floor votes on the debt ceiling before the 2012 elections.

This scenario allows him to dodge taxes and implement Democratic Senate through the wringer of ceiling for debt again. But it spells trouble for the Republicans in the House, and the great irony is that Boehner can find there more in common with Obama in a larger deal - especially if it helps to defuse the problem of Medicare eat in the House GOP.

Appearance McConnell Sunday on "this week the string ABC" remained faithful to the form.

"We got to the point where we store our talking points and get off at what can go," he said. "All of the company to increase taxes — regardless of how you go about it - is something that this Congress is not likely to do so." … "We need to talk about what can go."

But in its own Conference of the Senate, there is a clear Republican nostalgia for a bigger deal of deficit reduction and Obama challenge is to play to this audience in the hope to McConnell.

Despite democratic House, the administration is attempted by an agreement to reduce large deficit that could solidify the support of independent voters. After gaining what is likely his last term, Leader of the majority of the Senate Harry Reid (D - Nev.) is open to this approach - as long as Republicans acknowledge also the soil on the income.

Indeed, Reid and Obama were already in active discussions, and the meeting of White House scheduled for Monday majority leader seems more designed to define the stage of McConnell with Obama and Biden.