'Alternative Budget' Splits GOP Leaders

...even though 'this may bring my presidency down'

(NEWSER) - We already knew last night's debt talks did not go well —but not only did President Obama leave "abruptly," he really put his foot down, Talking Points Memo reports: "I have reached the point where I say enough," he said, according to those present. "Would Ronald Reagan be sitting here? I've reached my limit. This may bring my presidency down, but I will not yield on this." More of the latest developments:

• Obama reportedly gave both sides a deadline to determine whether they will seek long-term spending cuts or a short-term solution: tomorrow. His reason for leaving last night, at least according to one Democrat? Eric Cantor interrupted his closing remarks to push, for the third time, a short-term extension of the Aug. 2 deadline. Obama's response? "See you guys tomorrow."

Republicans call it a partisan campaign speech

(NEWSER) - A sampling of Republican reaction to President Obama's budget speech today, from USA Today and Politico :

• Paul Ryan: He called it "excessively partisan, dramatically inaccurate, and hopelessly inadequate" in getting the nation's debt under control. It was "a political broadside from our campaigner in chief."
• Jeb Hensarling: "I missed lunch for this?" asked the House GOP conference chairman. The speech was too skimpy on deficit-cutting details and more about "winning the next election" than "winning the future."

Boehner and Co. say they'll accept tax cut without paying for it elsewhere

(NEWSER) - House Republican leaders have surprised and angered rank-and-file lawmakers by abruptly backing down from demands that a 10-month extension of the payroll tax cut be paid for with cuts elsewhere. GOP leaders are wary of holding up a tax cut for 160 million Americans in an election year, Politico notes, but John Boehner's raucous caucus will likely chafe at the move, which will add around $100 billion to the deficit. Still, the measure will now likely pass; even Nancy Pelosi hasn't signaled opposition. More»

Reports say that Boehner is behind it, but others are 'in full revolt'

(NEWSER) - The Senate easily passed the payroll tax cut package yesterday, but "easy" probably isn't a word that will be linked to the deal's fate when it reaches the House tomorrow. Both the Washington Post and Politico report that many House Republicans aren't pleased with the two-month deal. How unhappy are they? Politico uses terms like "in full revolt" and "complained bitterly," while the Post calls the opposition that was voiced in a private conference call yesterday "vigorous." One person on the line apparently said that if the House is made to vote tomorrow, GOP leaders should ready themselves for, in the words of Politico, "a rebellion." More»

Some pundits think Republican leaders shouldn't play politics with Fed

(NEWSER) - The latest political firestorm comes courtesy of the top four Republicans in Congress (Mitch McConnell, John Boehner, Jon Kyl, and Eric Cantor), who wrote a letter to Ben Bernanke urging restraint on the economy. "We have serious concerns that further intervention by the Federal Reserve could exacerbate current problems," they write. (Full text here from the Wall Street Journal.) Because the Fed is supposed to be a politics-free zone, the letter has set off pundits:

• David Frum, Frum Forum : "Are they serious? ... It’s an hour of national emergency even more urgent and overwhelming than the aftermath of 9/11. ... This is the hour for united action against the economic crisis, not partisan maneuvering."