CTV has an exclusive report stating that Peter MacKay was asked to sign the infamous letter stating no side-deals, but that he refused and so Jim Flaherty did so instead.
The Liberals must be smelling blood now:
Liberal senators, who hold a majority, say they might even take up MacDonald's call to defeat the budget.
"If Mr. Harper wants this budget, Mr. Harper is going to have to change this budget," said Liberal Sen. Terry Mercer of Nova Scotia.
Having the Senate vote down the budget would be a vote of non-confidence in the government and an election could result.
"It would be totally irresponsible and it would be unprecedented for the unelected Senate to defeat a budget bill," said Conservative Sen. Marjory LeBreton, the party's house leader.
So, if the unelected, lottery-for-life Liberal and Atlantic Senators vote down this budget, we could be facing a summer election. Mike Duffy was discussing that option last night, and he sure didn't look enthused. I can't see Harper backing down in this game of chicken though.
Should be interesting to see how it all plays out.