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Obama calls on GOP to come up with alternative to sequester cuts

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The final round has 10 days to play out — the cuts take effect March 1 — but some argue it’s likely to come with a new ending. After agreeing to raise tax rates on top earners in a year-end budget deal, breaking a decades-long pledge to refuse tax increases, many Republicans are in no mood to bend to the president’s will.

“Just last month, the president got his higher taxes on the wealthy, and he’s already back for more,” House Speaker John Boehner, R-Ohio, said Tuesday. “The American people understand that the revenue debate is now closed.”

The current fight is just part of the larger debate over reaching an elusive deal that addresses the long-term drivers of the nation’s debt.

The parties seemed no closer on that front Tuesday. Obama hammered Republicans for rebuking what he calls his “balanced” approach and claimed they’d “rather have these cuts go into effect than close a single tax loophole for the wealthiest Americans. Not one.”

Republicans pushed backed by noting they want to simplify the tax code, eliminating deductions and loopholes, but also want to ensure additional revenue raised is used toward deficit reduction, not new spending.

Two veteran budget hands, Erskine Bowles and Alan Simpson, inserted themselves into the standoff on Tuesday, proposing a second long-term debt reduction plan.

Bowles, a Democrat and former White House chief of staff under President Bill Clinton, and Simpson, a former Republican senator from Wyoming, headed the National Commission on Fiscal Responsibility and Reform, which devised but did not agree to adopt a wide-ranging plan in 2011. Since then, the men have become advocates for bipartisan compromise that uses tax increases, revenue and entitlement reforms to lower the debt.

Their new, four-part proposal would build on the budget-cutting steps the White House and Congress already have enacted. The men called for entitlement and tax reform to produce about $2.4 trillion in deficit reduction and replace the $1.2 trillion in automatic spending cuts.

Congressional Republicans said Tuesday they are steeling themselves for the cuts to kick in and preparing to blame the president and Democrats for any damage.

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