The administration would only agree to cuts to Social Security benefits in exchange for reducing some eliminating some tax breaks that benefit the wealthy and certain industries, including oil and gas firms.
Senate Republican Leader Mitch McConnell warned that GOP senators will not vote to increase the governments borrowing limit unless President Barack Obama agrees to rein in Social Security, Medicare and Medicaid.
In an interview with The Associated Press, McConnell complained that Obama has refused his offers. Obama did not address the long-term financial problems of Social Security, Medicare and Medicaid in the 2012 budget proposal he released in February, saying it will take time to create the political environment necessary for Democrats and Republicans to negotiate in good faith on such difficult long-term issues.
Many Republicans in Congress say now is the time to act.