Harry Reid makes budget offer to Mitch McConnell --UPDATED 1:27 PM/-10/14

[KoKo]

Harry Reid makes budget offer to Mitch McConnell

By MANU RAJU, JOHN BRESNAHAN, JAKE SHERMAN and BURGESS EVERETT | 10/14/13 9:27 AM EDT Updated: 10/14/13 1:27 PM EDT

Senate Majority Leader Harry Reid has privately offered Senate Minority Leader Mitch McConnell a deal that would reopen the government until mid-to-late December while extending the U.S. debt ceiling until next year, according to several sources familiar with the talks.

The proposal would set up a framework for larger budget negotiations with the House over the automatic sequestration spending cuts and other major deficit issues, the sources said. Moreover, Senate Democrats are open to delaying Obamacare’s medical device tax and a requirement that those receiving Obamacare subsidies be subject to income verification — but they would have to get something from Republicans in return, sources said.

McConnell is still reviewing the offer and is privately huddling with groups of GOP senators Monday who could be key to providing enough votes in the Senate. On Monday morning, McConnell met with Sens. John McCain of Arizona, Susan Collins of Maine, Lisa Murkowski of Alaska, Mike Johanns of Nebraska and Mark Kirk of Illinois

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Time is running out. Any bipartisan agreement needs to come together very soon – either Monday or Tuesday – or else the nation runs a serious risk of running out of the ability to borrow money as soon as Thursday. In 2011, a last-minute deal to lift the debt limit resulted in a credit downgrade of U.S. debt.

After huddling with Reid for about 20 minutes, Democrats were confident that a deal could be finalized before Thursday.

http://www.politico.com/story/2013/10/government-shutdown-debt-ceiling-default-update-98260.html

[northoftheborder]

1. The Repubs must give something in return - I like that part.

[sinkingfeeling]

2. Not good enough, Harry. The medical device tax stays and we raise taxes

via a Wall Street transaction tax.

[chillfactor]

10. let's get the government open and the debt ceiling upped to 6 months or a year

then we can worry about the budget negotiations

[Motown_Johnny]

3. I don't care much about the medical device tax

so if they need to offer that up as the fig leaf, so be it.


I understand that some of that money could come out of profits, but if for the sake of argument we assume that the device manufacturer's profits remain constant....


Then doesn't that tax get rolled into the cost of the devices being sold?

And doesn't the increased cost of the devices increase the cost of medical care requiring those devices?

So won't this all just increase the cost of health care without really helping (much) to pay for it?

And aren't we just creating more paperwork along the way, as well as increasing the dollar amount of the 20% that the health insurance companies can keep (since we are increasing the 80% through increased costs)?


I tell ya, I would trade this 2.7% tax on medical devices for a 0.1% tax on all corporate profits in a pacemaker stimulated heartbeat.

[Turbineguy]

4. Income verification?

That would hurt republicans the most. Like the folks who took out liar loans to refi their inflated house values?

[randome]

6. I think this is in reference to ACA subsidies.

So I don't like this bit at all. On the other hand, nothing is certain yet, only that talks will be undertaken.
[hr][font color="blue"][center]Don't ever underestimate the long-term effects of a good night's sleep.[/center][/font][hr]

[Turbineguy]

7. The subsidy is based on the income you list.

Any discrepancies will be rectified on your next IRS filing.

[BluegrassStateBlues]

8. It was already part of ACA... I guess this would just force them to end the delay.

No one that isn't lying about their income will lose their subsidy.

It doesn't change the qualification levels at all.

[regnaD kciN]

23. Depends on the method…

They could come up with "verification" methods that would be like their Voter ID laws -- make it impossible for lots of people (particularly the poor) to qualify.

[KoKo]

5. It sounds like a "Kick the Can Down the Road"....though.

I was hoping that wouldn't happen. Negotiations are not what many of us had hoped for because that means bargaining with the Rabid RW and that never comes out as a good thing for us Dems.

[ProSense]

9. What happened to not negotiating?

Seriously, the deal looks like this: Democrats pay Republican hostage-takers' ransom in return for ending the Goverment shutdown and raising the debt ceiling, both temporarily.

Why are they pretending that releasing the hostages is in the interest of only Democrats?

The problem with an evolving ransom note

By Steve Benen

The government has been shut down for two weeks, and at the earliest, the nation is facing a potentially catastrophic debt-ceiling deadline in three days. We know congressional Republicans expect Democrats to pay a ransom before they agree to complete these basic tasks, but can anyone, anywhere, state with confidence exactly what GOP officials are demanding? Indeed, isn't it inherently problematic that the Republicans' ransom note keeps evolving?

Yesterday, House Republicans started working on a new, short-term debt ceiling extension. It's ... creative.



It's worth emphasizing that the House really isn't trying to work towards a solution anymore and all of the action is in the Senate. That said, if the Senate process collapses, Speaker John Boehner (R-Ohio) doesn't actually want a sovereign debt crisis, so his caucus is prepping a temporary bill to prevent default. Politico added, "The House GOP increase of the borrowing limit will not be 'clean.'"

Well, no, apparently not. The above image is based on reporting from National Review's Robert Costa, who first learned of the new laundry list. Let's take the bullets one at a time.

<...>

And yet, despite all of this, the House Republicans' latest ransom note -- demanding Democratic concessions in exchange for nothing -- is actually more modest than their last one. With the House GOP, I suppose this is what passes for progress.

http://maddowblog.msnbc.com/_news/2013/10/14/20960363-the-problem-with-an-evolving-ransom-note

[Aerows]

12. Screw the Republicans, ProSense

they are trying to get something out of a disaster they caused. You don't get points when you create the problems!

[jeff47]

14. The "deal" is re-open the government, debt ceiling for at least a year

and then we'll talk.

The article is written poorly in an attempt to make it look like the Republicans "got something". They didn't.

[Aerows]

17. The Republican tea party got us into this mess

they can suck up and relent to get us out of it.

[jeff47]

22. And that's what would actually be in "the deal".

They get nothing in "the deal". The government re-opens with a "clean" CR, and the debt ceiling is raised for a year.

Then the parties will talk about budget.....which is something they're supposed to do anyway. And something Democrats have been trying to do since April.

[Aerows]

27. I live in a Red State

a VERY red state, and people here are fed up with Republicans. Hell, I saw my former Democratic congressman in the grocery store on Sunday, and he looked like he was ready to run against the tea asshat we currently have. He's a Blue Dog, but a very nice man. He's more qualified than any of the teapublicans, republicans in my district will vote for him, and I will vote for him! I'll campaign for him.

[ecstatic]

11. thanks for the update! nt

[Robbins]

13. This Is bad

here is why

1:It rewards republicans for this crisis
2:We will be right back here later.Any short time deal Is bad.
3:If they are rewarded now why would late december be any different
4:Weakening the ACA allows Tea party to say they weaken It.

[jeff47]

16. No, it's a poorly-written article.

The deal:

1. Re-open the government.
2. Debt limit raised for at least a year.
3. We'll talk about budget.

The article then goes on to talk about what may happen in #3. But those possibilities aren't part of this deal.

But it's a Politico article, so they have to make it appear that the Republicans got something.

[Robbins]

20. My bad

Politico trying to fool people again.

I can live with CR to fund government at Sequester level and talk can beguin on budget after government is up and dedt limit raised
at least till october 2014.

[Junkdrawer]

15. Does this mean that Santa will give us a Chained CPI for Xmas?

I hear a lump of coal is a substitute for a new bike....

[Myrina]

25. Yep, Chained CPI & more hostage threats for us,

more tax breaks and 'incentives' for "job creators" ....

[ChangeUp106]

18. The GOP does get something

A way out.

We can have a discussion about the specifics and what's good or bad but an agreement is throwing the GOP a life preserver. It will also allow the media to continue to equal blame storyline. It'll be both sides coming together to fix the mess both caused. No, it was one side who caused this.

[Aerows]

19. I wouldn't piss on them if they were on fire

much less throw them a political life preserver after the shit they have pulled.

[LostOne4Ever]

21. Behavioralism 101

Don't reward bad behavior or it will only increase said behavior.

NO COMPROMISE OR NEGOTIATION TILL THE HOSTAGE IS RELEASED!

And even after the hostage is released, NO CAPITULATION. We are the ones who won the last elections. We are the ones who own both the senate and presidency. All they have is the house. WE HAVE ALL THE LEVERAGE. Any agreement after the crisis is over should HURT for the repugs and should OVERALL favor the democrats.

Only then can we get the republican party to start to move away from the BAT SHIT CRAZY right.

Reward good behavior, punish bad, and remove all stimulus that reinforces the bad behavior in the first place. Behavioralism 101.

[DonCoquixote]

24. Reed needed to go years ago

replace him with Wareen, Sanders, or anybody with a goddamned pulse! Even a lobotmized pit bull knows how to bark!

[RC]

28. I agree.

We can do better than Reed. Much better.

[libdem4life]

26. If we think taking hostages for ransom is bad now, wait until the "late December" re-negotiations

They want to be going home now. People are more and more angry with "Congress"...not just Republicans. Imagine the scene in late December...Christmas shopping, travel plans and The Holiday Spirit pending for millions of furloughed and those who lost their jobs...in essence, taking Santa hostage. Very bad timing.