GOP Slams Door on Obama 'Grand Bargain'

Republicans, Democrats fail to come together on budgeting.

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House Speaker John Boehner's office has already released a statement critical of President Obama's budget, which he will pitch in a speech in Tennessee on Tuesday.

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President Barack Obama plans on pitching an economic deal Tuesday that would exchange corporate tax reform for infrastructure and other investments aimed at job creation during his speech in Chattanooga, Tenn.

[READ: Tax Reform a Long Shot in Senate]

The goal is to strike a deal that will garner support from House Republicans who have resisted White House pitches in the past for being anti-business.

"As part of his efforts to focus Washington on the middle class, today in Tennessee the president will call on Washington to work on a grand bargain focused on middle-class jobs by pairing reform of the business tax code with a significant investment in middle-class jobs," said Dan Pfeiffer, a senior White House communications adviser, according to The Associated Press.

But the GOP is already sounding the alarm bells on Obama's pitch.

"Republicans want to help families and small businesses, too," said Michael Steel, a spokesman for House Speaker John Boehner, in a release. "This proposal allows President Obama to support President Obama's position on taxes and President Obama's position on spending, while leaving small businesses and American families behind."

Boehner and Obama have engaged in economic policy talks before and failed to reach a compromise, in part because of Boehner's struggle to win support in his caucus.

[ALSO: How a Shrinking Budget Means More Deadlock]

Democrats, meanwhile, are cheering the president's efforts.

"While deficit reduction continues to be an important goal, more and more decision-makers are realizing that our greatest problem is the decline in middle-class incomes," said Sen. Chuck Schumer, D-N.Y., in a release. "With these speeches, the president is adroitly and powerfully beginning to move the debate in that direction. It is both substantively and politically the right thing to do."

Pressure is building on both Republicans and Democrats to come to terms on an economic agreement, as the House will again need to vote on increasing the debt ceiling – likely in September – in order for the federal government to continue paying its bills. As with previous debt-ceiling votes, Republicans will seek to use the vote as a means of further cutting spending, while Democrats will seek to end the automatic spending cuts known as the sequester.

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