Obama to Congress: Do your job

@CNNMoney June 29, 2011: 3:29 PM ET
Obama to Congress: Do your job

NEW YORK (CNNMoney) -- With the clock ticking down, President Obama told lawmakers in no uncertain terms Wednesday that he expects them to deliver a compromise deal to raise the debt ceiling.

"At a certain point," Obama said. "They need to do their job."

Lawmakers must raise the nation's $14.3 trillion legal borrowing limit soon. The Treasury Department says that on Aug. 2 it will run out of money to pay the nation's bills in full and on time.

That deadline is now just weeks away, and the Senate is scheduled to be in recess next week.

"This is urgent, and it needs to get settled," Obama said. If a deal has not been hammered out by the end of the week, he suggested lawmakers cancel their vacations. "You stay here. Let's get it done." (Read: Full CNN coverage)

Republicans have demanded that any deal to raise the debt ceiling include deep spending cuts, but they have been reluctant to consider measures favored by Democrats that would increase revenue.

Obama used the White House bully pulpit to push Republicans on the issue, saying he wants to close loopholes in the tax code and eliminate subsidies that favor the wealthy or large corporations.

"Everyone else has moved off their maximalist positions," Obama told journalists at a news conference. Republicans "need to do the same."

Obama said the group of lawmakers who participated in negotiations led by Vice President Joe Biden had already identified more than $1 trillion in budget cuts. Republicans want far more.

Those negotiations faltered last week after Republicans withdrew, citing Democratic proposals to raise revenue, or in other words, increase taxes. The measures would add hundreds of billions of dollars to federal coffers.

Republicans have said flatly the proposals won't fly.

"Throwing more tax revenue into the mix is simply not going to produce a desirable result, and it won't pass," Senate Minority Leader Mitch McConnell said on Sunday.

Debt ceiling: Just do it

Obama has seldom addressed the need to raise the debt ceiling with the level of specificity on display Wednesday, a sign the issue now has the full attention of the White House after simmering for months.

"I've tried to be responsible and somewhat restrained so that folks don't get spooked," Obama said. "August 2 is a very important date."

Obama advocated for a balanced approach -- including cuts to defense spending and increased revenue.

"The good news is because of the work that has been done I think we can actually bridge our differences. I think there is a conceptual framework that would allow us to make huge progress on our debt and deficit," he said.

How Washington screwed up the budget

On Wednesday, McConnell said Republicans will not let taxpayers take the hit when it comes to reducing the debt.

"It's about drawing a line in the sand and saying, 'no, the taxpayers will not bail out politicians.' It's about refusing to subsidize the Democrats' irresponsible spending habits another day," he said.

While McConnell put the blame on Democrats, both parties are responsible for runaway spending. The debt ceiling, after all, has to be raised because Congress enacted laws that increased spending, or cut taxes, without finding an offset.

Obama, himself a member of Congress just a few years ago, made that point as he admonished lawmakers to negotiate in good faith.

"These are bills that Congress ran up," Obama said. "The money's been spent. The obligations have been made."

-- CNN's Tom Cohen and Alan Silverleib contributed to this report. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Economic Calendar
Latest ReportNext Update
Home pricesAug 28
Consumer confidenceAug 28
GDPAug 29
Manufacturing (ISM)Sept 4
JobsSept 7
Inflation (CPI)Sept 14
Retail sales Sept 14
  • -->

    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.