WASHINGTON (dpa-AFX) - Negotiations aimed at averting a series of automatic spending cuts and tax increases set to take effect in January suffered what Democrats called a major setback Sunday.
The cuts and tax increases were put in place earlier in the year as part of a budget deal aimed at pressuring lawmakers to come to a more palatable deal by January 1 to avoid what has come to be known as the 'fiscal cliff,' due to the potential damage to the nation's economy of allowing the package to become law.
Senate Majority Leader Harry Reid, D-Nev., said on Sunday that there are still 'serious differences between the two sides.'
One of the major differences appears to come from a proposal put forward by Senate Republicans on Saturday night calling for significant cuts to Social Security benefits in exchange for President Barack Obama's call to extend emergency unemployment benefits and avoid significant cuts to the Defense budget.
One Democratic aide close to the talks told the Washington Post that the GOP proposal is the equivalent to a 'poison pill' that would kill the potential deal also saying that it was a 'significant' step back from apparently close negotiating positions reached on Friday.
Senate Minority Leader Mitch McConnell, R-Ky., said he was concerned by what he called a lack of urgency from Democrats.
'There's far too much at stake for political gamesmanship,' McConnell said on the Senate floor. 'We need to protect American families and businesses from this looming tax hike. Everyone agrees that action is necessary.'
McConnell said he would reach out to Vice President Joe Biden in an effort to finalize a deal.
'I'm interested in a result here. And I'm willing to work with whomever can help,' he said. 'There is no single issue that remains an impossible sticking point - the sticking point appears to be a willingness, an interest, or courage to close the deal.'
He added, 'I'm willing to get this done but I need a dance partner.'
Obama, speaking on NBC's Meet the Press show Sunday morning, sought to put the burden for any potential failure of negotiations squarely on the Republican opposition.
'[A]t a certain point, if folks can't say 'yes' to good offers, then I also have an obligation to the American people to make sure that the entire burden of deficit reduction doesn't fall on seniors who are relying on Medicare,' Obama said, according to a partial transcript of the interview. 'The offers that I've made to them have been so fair that a lot of Democrats get mad at me.'
Nevertheless, Obama said, he remained optimistic that a deal could be reached.
'Winston Churchill used to say that we Americans, we try every other option before we finally do the right thing,' Obama said. 'And I think that that's true for Congress as well. And I think it's also important for Americans to remember that politics has always been messy.'
He added, 'Do I wish that things were more orderly in Washington and rational and people listened to the best arguments and compromised and operated in a more thoughtful and organized fashion? Absolutely. But when you look at history, that's been the exception rather than the norm.'
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