“‘Whatever we agree on, we are still going to have plenty to argue about in 2012,'” a senior administration official said, paraphrasing the president. “‘I’ve said I’m not going to renew the tax cuts for the top two percent. We might agree on tax reform or simplification, but on the upper-income tax cuts we are just going to have to agree to disagree.'”

Two House Democrat attendees confirmed the substance of those remarks. One of those lawmakers, who agreed to speak about the event on condition of anonymity, said that members were “worried that the Obama Administration would cave [in debt ceiling negotiations] because Republicans were willing to default on our debt if they don’t get what they want.”

The President responded by saying it was vital to have revenues as part of the mix, stressing that a budget can’t be balanced on non-defense discretionary spending or the “backs of the most vulnerable.” Obama added, according to the member, that, “he would not support extending the Bush tax cuts for the top two percent again no matter what hostages Republicans took.”