Boehner confident government won't default

AP News
Posted: Jul 22, 2011 7:57 PM
Boehner confident government won't default

House Speaker John Boehner says he's confident congressional leaders will be able to come together to avoid a government default following the collapse on budget talks with President Barack Obama.

Speaking Friday evening after withdrawing from talks on a "grand bargain" for $4 trillion or so in deficit cuts over the coming decade, Boehner said Congress will have to step in to forge an agreement to lift the government's borrowing cap.

"We can work together here on Capitol Hill to forge an agreement and I'm hopeful the president will work with us," Boehner said.

The Ohio Republican said he'll be attending a White House meeting Saturday morning aimed at coming up with a fallback plan to raise the government's borrowing cap _ but he said spending cuts of a commensurate size will still have to be attached.

Boehner accused Obama of "moving the goal posts" by demanding $400 billion in tax increases on top of about $800 billion in revenues that would have been reaped through a comprehensive rewrite of the tax code.

"There was an agreement with the White House at $800 billion in revenue. It's the president who walked away from his agreement and demanded more money at the last minute," Boehner said. "And the only way to get that extra revenue was to raise taxes."