Senate’s number-three Democrat,, told Republicans Sunday that they will get their much awaited budget proposal, but warned that it is likely to include higher taxes that Republicans oppose.
Obama has so far pushed for a balanced approach of dealing with the nation’s deficit, but Republicans have bitterly complained for years that if the president wants to raise the debt ceiling then he must also incorporate a spending plan in the deal as well. GOP officials have been insisting that the Senate Democrats give them a new federal budget that they had been denied for years. They also added a caveat to budge the Democrats that there will be "no pay for the Senators" if there is again no budget.
"We're going to do a budget this year," Schumer said hours before Obama officially began his second term. "And it's going to have revenues in it. And our Republican colleagues better get used to that fact."
Schumer’s announcement comes just a week after the House Republicans confirmed that they will approve a short-term increase in the nation’s borrowing limit without asking for spending cuts. The Democrats praised the Republican decision but insisted that the extension should be longer than three months, which the lawmakers were offering.
“We don’t want to play fiscal cliff every three months,” Schumer said.
The White House said that the officials are committed to produce what they call a "balanced approach". Obama’s senior advisor,, also said that the brief extension offered by the Republicans "is no way to run an economy or a railroad or anything else," though the president will take a closer look at Republican ideas when they are presented in the form of legislation.
When asked by ABC’s George Stephanopolous whether Obama will sign a budget deal only if it includes new revenues, Plouffe agreed. “We need spending cuts, entitlement reform and revenue. We have to have that.”
Plouffe said that the new Republican strategy allowing an extension to the government shows how weak the opposition has become since Obama won November elections. “This is a big departure for them, you know?” Plouffe said of Republican lawmakers’ change of course and at the same time referring to House Speaker John Boehner’s difficulty in rounding up enough votes in his republican caucus to pass his own party’s proposal.