Boehner rips Obama as 'unserious'

WASHINGTON -- Face to face with time running short, President Barack Obama and Republican House Speaker John Boehner negotiated at the White House Thursday night in what aides called "frank" talks aimed at breaking a stubborn deadlock and steering the nation away from an economy-threatening "fiscal cliff."

Boehner returned to the Capitol an hour later, briskly walking past reporters without comment. There was no indication whether any progress had been made, though the use of the word "frank" by both sides to describe the talks suggested the president and the speaker stuck hard to their opposing positions.

The meeting came shortly after Obama suggested that the sluggish pace of deficit-cutting talks between the administration and congressional Republicans was a result of a "contentious caucus" of GOP lawmakers who were making it difficult for Boehner to negotiate.

Boehner saw it differently. He said earlier in the day: "Unfortunately, the White House is so unserious about cutting spending that it appears willing to slow-walk any agreement and walk our economy right up to the fiscal cliff."

Thursday night's meeting was the second face-to-face encounter in five days as Obama and Boehner seek to find an agreement that avoids major tax increases and across-the-board spending cuts scheduled to kick in January.

Before the meeting, Boehner accused Obama of dragging out negotiations. Obama is insisting on higher tax rates for household incomes above $250,000 to cut federal deficits; Boehner opposes higher rates, though he has said he would be willing to raise tax revenue by closing loopholes and deductions.

Obama was hopeful of a "change in attitude" from Republicans on raising taxes on the wealthy.

He added that the notion of not raising taxes "has become sort of a religion for a lot of members of the Republican Party. I think Speaker Boehner has a contentious caucus, as his caucus is tough on him sometimes so he doesn't want to look like he's giving in to me somehow because that might hurt him in his own caucus."

While the impasse over Obama's demand for higher tax rates continues to be a main obstacle in negotiations, Boehner complains that the president refuses to offer spending cuts to popular benefit programs like Medicare.

The White House has offered about $600 billion in specific savings over the next decade, including about $350 billion in spending reductions in health care programs such as Medicare.

There's increasing resignation within the GOP that Obama is going to prevail on the rate issue since the alternative is to allow taxes on all workers to go way up when Bush-era tax cuts expire on Dec. 31.

"I think it's time to end the debate on rates," said Sen. Richard Burr, R-N.C. "It's exactly what both parties are for. We're for extending the middle-class rates. We can debate the upper-end rates and what they are when we get into tax reform."

"He's got a full house and we're trying to draw an inside straight," said Sen. Johnny Isakson, R-Ga. When it was observed that making a straight would still be a losing hand, Isakson said: "Yeah, I know."

Boehner remains the key figure, though, caught between a tea party faction and more pragmatic Republicans advising a tactical retreat.

Meanwhile, one of Obama's top Senate allies said Thursday that an increase in the Medicare eligibility age is "no longer one of the items being considered by the White House."

Sen. Dick Durbin, D-Ill., told reporters he did not get his information directly from the president or the White House. But as the Senate's No. 2 Democrat, Durbin is apprised of the status of negotiations by such key players, including Majority Leader Harry Reid, D-Nev.

Increasing the eligibility age is a key demand by Republicans seeking cost curbs in popular benefit programs in exchange for higher tax revenue.

Durbin's comments were surprising since negotiators, including Reid, have been careful to not preclude the possibility of agreeing to such an increase -- perhaps as a late-stage concession in a potential deal.

Reid again called on House Republicans to allow a vote on renewing Bush-era tax cuts for the 98 percent of taxpayers whose incomes are below $250,000. Obama vows to force rates on family income exceeding $250,000 from a top rate of 35 percent to the Clinton-era rate of 39.6 percent. He said the alternative is to allow tax cuts for everyone to expire.

"At some point, reality should set in," Reid said.

On Thursday, Sen. Jim DeMint, R-S.C., predicted the president would prevail in the fight over taxes.

"He's going to get his wish. I believe we're going to be raising taxes, and not just on the top earners," DeMint, who is leaving the Senate to become president of the Heritage Institution think tank.