Job News Fuels Deficit Divide
The White House and congressional leaders begin a crucial weekend of negotiations on a deficit-reduction deal under a cloud of dour economic news and mounting political pressures on both sides, casting doubt on how significant an agreement they can achieve.</br></br>President Barack Obama and House Speaker John Boehner (R., Ohio) are battling opposition from within their own parties to their decision to strive for a plan that would reduce the deficit by $4 trillion over 10 years, in part by curbing entitlement spending and rewriting the tax code to boost revenue.</br></br>The two men surprised many in Washington this week by aiming for such an ambitious bargain, rather than a smaller package of roughly $2 trillion the White House and Congress had pursued for weeks. Although many Republicans and Democrats say they applaud the goal in theory, they also express doubts about reaching it given the major compromises it would require from both parties heading into an election year.</br></br>Mr. Obama and eight congressional leaders, including Mr. Boehner, are scheduled to meet at the White House on Sunday night to determine how big a deal they can achieve.</br></br>News that the unemployment rate rose to 9.2% in June, its highest level this year, pushed members of both parties further into their rhetorical corners Friday.