National debt impasse

So President Obama offered $4 trillion in budgetary cuts if the Republicans would accept a tax increase on the higher brackets.  House Speaker Boehner rejected increasing anyone’s taxes, indicating that he would accept a $ 2.4 trillion trim in cuts alone.

Talks between President Obama and congressional Republicans grew increasingly contentious on Monday, as GOP leaders flatly rejected his call to raise taxes on the wealthy as part of a bipartisan agreement to restrain the nation’s mounting debt.

Dueling news conferences by Obama and House Speaker John A. Boehner (R-Ohio) served as a testy prelude to an afternoon bargaining session that only emphasized the partisan divide, according to people on both sides with knowledge of the closed-door discussions.

During the meeting, Obama challenged Boehner to buck the anti-tax hard-liners in his party, who, the president suggested, are blocking the path to a landmark compromise to reduce borrowing by as much as $4 trillion over the next decade. Boehner and House Majority Leader Eric Cantor (R-Va.) responded by urging Democrats to settle for a more modest reductions-only deal that would save $2.4 trillion but would not touch tax breaks for the nation’s richest households.

In addition to major cuts to domestic agencies, the House GOP proposal calls for slicing about $250 billion from Medicare over the next decade by asking well-off seniors to pay more for health coverage, placing new restrictions on Medigap policies and putting in place new co-payments and cost-sharing provisions for home health care, among other changes. Those reductions would come on top of about $500 billion in Medicare savings previously enacted as part of Obama’s overhaul of the health-care system — cuts Republicans denounced during last fall’s midterm campaign.

via Debt talks between Obama, Republican leaders grow more contentious – The Washington Post.

Isn’t it better to have a $4 trillion cut than a $2.4 trillion cut?  And wouldn’t a tax increase cut the deficit even more, on top of that?  Isn’t the deficit such a huge problem that we need to attack it both by cutting spending and by increasing revenues somehow?  Given that Democrats don’t want to cut entitlements and Republicans don’t want to increase taxes, do you see any way out of this impasse?