It's spending AND revenue, stupid. (Chart:
CBPP)
Reuters:
Top lawmakers aiming to reach a deficit-reduction deal agreed on Thursday to step up the pace of their talks with a series of meetings next week but said they still disagreed over the need to raise taxes. ... Asked if Republicans had shown a willingness to consider tax increases, Democratic Representative Chris Van Hollen, one of the negotiators, told reporters, "I can't say that would be true, no."
But he said the group, which had not met for two weeks, had agreed to meet three times next week.
Van Hollen said that Democrats were willing to support spending cuts as part of a long-term framework, but that any major reductions should be postponed because of the weakness of the economy. Republicans, represented by Eric Cantor, continued to say they will not raise the debt limit unless Democrats agree to massive, immediate spending cuts.
Earlier this week, Paul Ryan said a short-term default would be an acceptable scenario for him, saying it was "more important" to cut spending than to make sure the government meets its fiscal obligations.