Daily Tax Update - October 2, 2013: Shutdown Stalemate Continues - President Vows Veto of Piecemeal Approach

Shutdown Stalemate Continues - President Vows Veto of Piecemeal Approach:  The political impasse over the government funding bill shows no signs of ending soon.  Today, the House Republicans plan to offer five mini spending bills to fund parts of the government.  The bills would fund veterans benefits, national parks, the DC government, the National Institutes of Health and the National Guard.  Similar partial funding bills were rejected in the House yesterday and the White House has vowed to veto any piecemeal funding bills.  If the government shutdown continues more than a few days, the impending October 17 debt ceiling deadline could further complicate negotiations.

Senate Majority Leader Harry Reid offered to open negotiations on tax reform if Republicans agreed to a clean continuing resolution to reopen the government.  House Speaker John Boehner dismissed the idea.

The President and key Congressional leaders are meeting at the White House late this afternoon to discuss the shutdown and the debt ceiling.  The Administration issued a statement of administration policy earlier today, which said that a piecemeal approach is "not a serious or responsible way to run the U.S. government" and that President Obama would veto the measures.  The statement continued, “Instead of opening up a few government functions, the House of Representatives should re-open all of the government.  The harmful impacts of a shutdown extend across Government, affecting services that are critical to small businesses, women, children, seniors, and others across the nation." 

Today, in an op-ed, House Speaker John Boehner said, “The president isn't telling the whole story when it comes to the government shutdown.  The fact is that Washington Democrats have slammed the door on reopening the government by refusing to engage in bipartisan talks. . . . As of this morning, Senate Democrats, acting in concert with President Obama, have rejected four different proposals from the House of Representatives to keep the government running and fund basic services.”  Boehner continued, “In the meantime, in just a few weeks, Congress must act to raise the debt limit to pay the tab for President Obama and Washington's out-of-control spending.  There is no way Congress can or should pass such a bill without spending cuts and reforms to deal with the debt and deficit and help get our economy moving again.  But President Obama refuses to even talk about negotiating such a bipartisan agreement.  For years, the president has said that in a divided government, no one gets 100% of what they want.  But when will his words match his actions?”  Boehner added, “As for House Republicans, we will continue our efforts to keep the government running and deal honestly with the problems we face.  We hope that Senate Democrats – and President Obama – change course and start working with us on behalf of the American people.”