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Washington Watch Editor's Note: Budget Negotiations Update

Jun 02, 2011

Posted by Kristin Oberlander - Budget negotiations between House Democrats and Republicans have hit a deadlock as of this week, with the House voting down a proposal on Tuesday to raise the debt limit without offering any budget reduction measures. President Obama is scheduled to meet with House Republicans today to lay out his vision for an agreement and to meet with House Democrats tomorrow.

For the past several days, Vice President Joe Biden has been working with congressional leaders to try to hammer out a budget deal acceptable to both parties and as a means to garner support to raise the debt ceiling.

Democrats are pushing for revenue increases (in the form of ending tax subsidies for oil companies or ending the Bush tax cuts for those making over $250,000) as well as spending cuts. Republicans have so far refused to raise taxes and are focused solely on spending reductions.

Republicans are largely standing behind the controversial budget proposed by Rep. Paul Ryan (R-Wis.), released last month, which tackles expenses created by entitlement programs and would transform Medicare into a voucher system.

After the Ryan proposal passed the House, Senate Majority Leader Harry Reid (D-Nev.) brought it to a vote on the floor and it was defeated.

Stay tuned to Washington Watch for updates on this issue.