Deficit-reduction talks sidestep Medicare, taxes

WASHINGTON — Democrats and Republicans agreed Thursday to focus initially on areas of potential compromise — rather than overhauling Medicare or raising taxes — as they seek to reduce a $1.4 trillion budget deficit and slow the growth of the $14.3 trillion national debt.

House Majority Leader Eric Cantor looks on as Vice President Joe Biden meets with congressional Republicans and Democrats in hopes of striking a deal on deficit reduction Thursday.

Both sides came away from a meeting led by Vice President Biden encouraged that common ground exists in the areas of less controversial spending cuts and rules to lock in savings. "We made progress," Biden said.

They will meet again Tuesday, when the specific subject on the table will be potential areas of agreement. That's in contrast to the rhetoric of the past month, when President Obama lashed out at Republicans' plan to turn Medicare into a voucher program and Republicans belittled Obama's plan as cutting too little and raising taxes too much.

"I think today's meeting really was in contrast to the rhetoric that we've heard before," said House Majority Leader Eric Cantor, R-Va. "Without attacking anyone's plan, we're looking to find areas on which we agree."

House Budget Committee Chairman Chris Van Hollen, D-Md., echoed that sentiment. "Everybody is trying to reach a serious, credible agreement," he said.

Biden and the six lawmakers representing House and Senate leaders face two deadlines:

•The nation's $14.3 trillion debt limit will be reached this month, and extraordinary measures by the Treasury Department will avoid a government default before early August.

Republicans say they won't allow more borrowing without action on the deficit — spending caps and additional cuts.

•Any further effort to control the nation's long-term debt will have to be done before Congress adjourns this year, because neither side expects action during the 2012 election year.

Republicans have said they don't expect quick action on their Medicare overhaul. That was made clear Thursday when 50 Democratic senators wrote Obama in opposition to the Medicare plan, guaranteeing it won't pass the Senate.

"The reality is this president has excoriated our budget plan and the Medicare proposal in the plan," Cantor said.

In turn, Republicans say, Democrats should stop trying to raise taxes. Obama's plan calls for raising tax rates on upper-income Americans and eliminating tax breaks enjoyed by powerful industries.

"Nothing is off the table except for raising taxes," said House Speaker John Boehner, R-Ohio.

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