Reid’s ready to deal, so where are Republicans?

Back in January, U.S. Sen. Harry Reid said Social Security was not up for negotiations when it comes to writing budgets or raising the nation’s debt ceiling.

“As long as I’m the majority leader, I’m going to do everything within my legislative powers to prevent privatizing or eliminating Social Security — put simply, say, ‘It’s off the table,’ ” Reid said in January.

Line drawn.

But more recently, as debate over raising the debt ceiling has intensified, President Barack Obama has said Social Security (along with Medicare and Medicaid) might be part of a bargain. “Well, let’s step up. Let’s do it,” Obama said at a news conference Monday. “I’m prepared to take significant heat from my party to get something done. And I expect the other side should be willing to do the same thing.”

Yes, a little thing called “negotiation,” where each side makes concessions in order to reach a larger goal. How quaint.

And then Reid told the Review-Journal’s Steve Tetreault that he’d be open to discussing changes to Social Security, Medicare and Medicaid, which seemed at first to be a significant concession from the majority leader.

Line erased?

Not quite. Reid has conditions. First, he won’t even discuss entitlements unless it’s part of what he calls a “grand bargain,” a sweeping, long-term deal that will cut the deficit significantly over the next 10 years. Second, the pact has to include something the Republicans have refused since the debt ceiling debate began: the repeal of tax cuts on higher incomes put into place by former President George W. Bush and extended by Obama in another budget deal with Republicans.

“There is no need to talk about a grand bargain, because that has been trashed by (House Majority Leader Eric) Cantor and (U.S. Sen. Jon) Kyl, and I haven’t heard any wild applause from anyone else in the Republicans,” Reid said. “(House Speaker John) Boehner walked out on it, so let’s not spend a lot of time on a grand bargain.”

So, is Reid’s offer to consider entitlement changes real or not? Or did he just say it because he knows the other side has been so intransigent on the issue of taxes?

“We’re talking about talking about it,” explained one Democratic congressional source. “No one’s talking about giving up Social Security, Medicare and Medicaid.”

But with deadlines looming — Obama has said he wants an agreement soon, and Reid has said that July 27, just 12 days away, is the latest legislation could be written and passed in both houses — there’s not much time left for talk.

What’s truly amazing is that even with the chance to score reforms to the biggest budget busters on the federal books — entitlement programs — Republicans are balking. The president and the majority leader of the Senate, two people who can get things done, are willing to compromise. Yes, they would fight every Republican suggestion for reform along the way. But the door is open.

But because of Republican antipathy for tax increases, the best that seems possible is a fallback plan proposed by Senate Minority Leader Mitch McConnell that would see Congress pass resolutions disapproving of debt increases, but allow them to take place with Obama’s veto of the resolutions. No tax increases, no guarantee of major long-term spending cuts, no entitlement reform. Nobody, including the tea party, really likes the idea.

But it may have to do. “There are real consequences if we don’t get a deal,” the Democratic source said.

 

Steve Sebelius is a Review-Journal political columnist and author of the blog SlashPolitics.com. Follow him on Twitter at www.Twitter.com/SteveSebelius or reach him at (702) 387-5276 or ssebelius@ reviewjournal.com.