Nancy Pelosi on 2012: ‘This Time, Republicans are The Incumbents’

House Minority Leader Nancy Pelosi, a Democrat from California, said that reductions in “tax subsidies” for companies must become part of any deal to cut the U.S. budget deficit and increase the federal debt ceiling.

President Barack Obama meets with the Democratic House Caucus in the East Room of the White House, June 2, 2011. Flanking the President are Minority Leader Nancy Pelosi, left, and Rep. Steny Hoyer, Minority Whip. Photo: Official White House Photo by Pete Souza

Pelosi said in her interview on CNN’s “State of the Union” that Barack Obama and House Speaker John Boehner will need the support of Democrats to get an agreement through the House.

She said that such an agreement would have to include spending cuts as well as an end to tax breaks for some industries such as oil. Pelosi said: “You can’t cut your way out of the deficit. You have to have revenue on the table.”

Obama started the negotiations to cut at least $1 trillion from the long-term deficit and raise the nation’s $14.3 trillion debt ceiling before August 2 after the breaking down of the discussions led by Vice President Joe Biden  when House Majority Leader Eric Cantor, a Republican, walked out June 23 and said that he wouldn’t discuss increases in revenue.

Pelosi said: “The obstacle has come because Leader Cantor walked away from the table because he doesn’t want to deal with the special – interest tax subsidies”. Barack Obama summoned Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell for separate meetings at the White House which are aimed at breaking the impasse.

Yesterday McConnell said on ABC’s “This Week”: “Throwing more tax revenue into the mix won’t get us the desired results. And it won’t pass.” He added that Republicans are focused on cutting spending. “We need to cut spending now, we need to cap spending in the future, and we need to save our entitlement programs,” he said.

Republicans propose to cut spending on entitlement programs such as Medicare and Medicaid. In his speech at a political fundraiser on June 23 in New York, Obama said he’s “prepared to bring down our deficit by trillions of dollars,” and that spending cuts must be “balanced” with tax increases on the wealthy.

According to the Congressional Budget Office, U.S. debt may exceed the size of the nation’s economy by 2021. Nancy Pelosi also said that she does not expect liberal voters to be turned off by President Obama’s recent pledge to remove 30,000 troops from Afghanistan, leaving nearly 70,000 troops in the nation and nearly 100,000 troops in the region.

“He has taken us on a course to end this war. He is finishing the war in Iraq. He is the president. He has a plan, and that’s something that we have not had before,” Ms. Pelosi said.

Pelosi’s comment follows criticism of president Obama criticism from both sides of the political spectrum after his speech Wednesday nights. Democrats attacked the president, saying that his plan does not remove troops fast enough. At the same time Republicans said that. Obama’s plan would harm U.S. interests in the region.

“The president has a different role. We do too in Congress. But I would hope that the base could influence, if not … influence the decision, and I think they have. The president has taken out more troops than some others wanted him to do,” Pelosi said.

When asked whether Democrats in the House can gain seats in the 2012 election when the unemployment rate reached 9 percent Nancy Pelosi said: “We expect to have a full debate about all of the issues that affect the American people. We are about the kitchen table, and what are the issues -– the jobs, the education of their children, the security of their pension, and their homes, and the rest of that.”

”It is very hard historically it is –- you can see the charge. When the jobs are –- the unemployment rate is high, it’s hard for the incumbent to win. I remind you, though, we’re not the incumbent. The Republicans are the incumbents,” she added. [via Bloomberg, The State Column and The Huff Post]

Share this article

We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Coinspeaker Ltd.