WHY OBAMA REJECTED a short-term debt deal.
President Obama insisted yesterday that Congress reach a long-term budget deal, not a short-term “quick-fix” that could put the debt ceiling debt smack in the middle of the 2012 campaign next year. This is a major shift. Since January, the Obama administration has been calling for a “clean” debt limit hike to avoid economic “catastrophe.” As recently as two weeks ago the White House signaled they were open to a short-term deal. Now Obama’s position is that the deal must include reforms for Medicare, Medicaid and taxes, all to be completed by July 22. Why the monumental shift in position?
Obama wants to minimize how often Republicans in Congress can ask for spending cuts and maximize his own opportunities to seek tax hikes aka “revenue.”
No surprise there.