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Subscribe to RSSAfter a weekend that generated skepticism about a possible deal to avert the 'fiscal cliff,' House Republicans presented a plan that includes $800 billion in new taxes, which is half of what the White House asked for. NBC's Chuck Todd reports.
Updated 4:50 p.m. ET -- Republicans offered up their own proposal to avert the impending “fiscal cliff” on Monday amid Democratic demands that the GOP match the Obama administration’s plan with one of their own.
In a letter to President Barack Obama, House Republican leaders outlined the contours of a deal they said would achieve a net savings of $2.2 trillion. The plan, which is based on fiscal commission Democratic co-chairman Erskine Bowles’s proposal to the super committee, would achieve these savings through revenue from tax reforms, health savings and discretionary spending cuts.
Recommended: Income tax rates just one piece of Obama proposal
"Going over the cliff will hurt our economy and hurt job creation in our country. It’s one of the reasons the day after the election I offered a concession to try and speed this process up. Unfortunately, the White House responded with their ‘La-La-Land’ offer that couldn't pass the House or Senate and was basically the president’s budget from last February," House Speaker John Boehner told reporters on Capitol Hill at a briefing detailing the plan.
Alex Wong / Getty Images
Speaker John Boehner speaks during a news conference, Nov. 30, 2012, on Capitol Hill.
"We could have responded in kind, but we decided not to do that. What we’re putting forth is a credible plan that deserves serious consideration by the White House and I would hope that they would respond in a timely and responsible way," the Ohio Republican added.
Dan Pfeiffer, the White House communications director, said the plan "does not meet the test of balance."
"Their plan includes nothing new and provides no details on which deductions they would eliminate, which loopholes they will close or which Medicare savings they would achieve," he said. "While the president is willing to compromise to get a significant, balanced deal and believes that compromise is readily available to Congress, he is not willing to compromise on the principles of fairness and balance that include asking the wealthiest to pay higher rates ... Until the Republicans in Congress are willing to get serious about asking the wealthiest to pay slightly higher tax rates, we won't be able to achieve a significant, balanced approach to reduce our deficit our nation needs."
The counter-offer coincides with Democratic demands that Republicans produce their own proposal to match the deal offered last week by the administration. That plan, presented to Republicans by Treasury Secretary Tim Geithner, called for $1.6 trillion in new revenues, savings from entitlement programs and new spending on unemployment insurance and investment projects. GOP leaders rejected the plan out-of-hand.
Still, the GOP proposal on Monday appears to move no further toward compromise on Obama’s central demand that tax rates be allowed to increase on the wealthiest Americans. While Republicans have agreed in principle that richer Americans can shoulder a greater share of the tax burden, they insist this must be achieved through ending loopholes and deductions, rather than raising rates.
The Republican plan, which is also backed by Senate Minority Leader Mitch McConnell, R-Ky., achieves its $2.2 trillion in several steps.
rep. Sander Levin, D-Mich., talks about the key points in President Barack Obama's fiscal cliff negotiation that are making Republicans wary.
As Republicans put it, they would raise $800 billion in new revenue through tax reform, $600 billion in health savings, $200 billion from changes to the Consumer Price Index, $300 billion in discretionary spending cuts, and another $300 billion in savings in mandatory spending. Many of the health savings track closely with the changes to Medicare first proposed in Wisconsin Rep. Paul Ryan’s budgets.
Republicans say the plan, using the Obama administration’s math, would achieve $4.6 trillion in savings.
It’s unclear, though, whether the Republican plan would move toward ending the stalemate around the fiscal cliff negotiations, with less than a month remaining until the automatic tax hikes and spending cuts are scheduled to snap into place on Jan. 1.
Senate Majority Leader Harry Reid, D-Nev., pummeled his GOP colleagues earlier Monday afternoon, arguing that their failure to produce a counter-offer would only exacerbate the situation.
The new GOP plan reflects the posturing that has come to characterize these negotiations, separated just a month from an election which awarded Obama a second term and which kept Republicans in control of the House and Democrats in control of the Senate.
Also on Monday, the president continued his messaging offensive on Monday with a glossy campaign-style video highlighting the cost to families if the 2001 Bush-era tax cuts were allowed to expire at the end of this month. (Obama has argued they should be extended for all but the wealthiest 2 percent of U.S. households.)
Benjamin Myers / Reuters
Treasury Secretary Timothy Geithner arrives at Capitol Building before a meeting with House Minority Leader Nancy Pelosi in Washington, D.C., Nov. 29, 2012.
The president also took to Twitter to make the case for his own plan, answering questioners who used the informal 140-character medium to ask about the fiscal cliff negotiations.
Asked by one participant why he insists on increasing rates on the top 2 percent of earners rather than limiting deductions in order to raise revenues, the president replied that capping deductions alone would not raise adequate revenue.
"Not enough revenue, unless you end charitable deductions, etc. [L]ess revenue=more cuts in education," he wrote.
The president also dismissed the GOP notion that lower taxes for the very wealthy have a trickle-down effect in terms of new hires and a larger tax pool. "High end tax cuts do least for economic growth & cost almost $1T," he wrote. "Extending middle class cuts boosts consumer demand & growth"
Obama also argued that his administration cut spending by $1 trillion last year and that he is open to further "smart cuts" as long as they don't affect education or job growth.
NBC's Frank Thorp contributed to this report.
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Tax reform = keeping the bush tax cuts for the wealthy, maybe some minor closings of corporate loopholes and deductions for us. Then "health savings" = cutting out some of Obamacare! Following some of Ryan's plan = cuts in SS and Medicare and/or opening the door to privatizing! Im sure there are other code words for catering to the wealthy and corporate elite while giving Joe America the finger! Overall, seems like SSDD!!
Americans re-elected Obama by a wide margin. They WANT him to do what he promised to do and they REJECTED the GOP plans to screw the middle/working classes. My guess that some of this is DOA! Certain things are NOT on the table. We've had ENOUGH damage from the GOP over 30+ years. We want our country back!! If the GOP leads us over the cliff, they're toast. The people have spoken!!
Red head
You either don't have job , and are on some sort of welfare program (or as the left now calls them ) Safety net program to be politically correct . Or you getting paid to be the first sarcastic , negative , leftest to post to these articles.
Dammed do you sit on a lemon to get that sorrow !!! Grow up !!
Somehow Republicans did NOT get the message!! It is a NO GO if taxes are not increased on the wealthy as the president has said about 9000 times. These are NOT big tax increases but the wealthy have been getting away with paying on the cheap, using all kind of loopholes and foreign investment like Romneybot did.
SO NO NO NO NO NO NO NO NO NO... What part of NO do you not understand.....You are NOT going to take it out of the hides of the middle class that has no hide left to take out of. We NEED STIMULOUS and a tax hike on the middle class is a non starter but a tax hike on the wealthy will do the trick and they will not even feel it. GIVE US A BREAK, Republicans, we are NOT stupid!
Natalie
So no compromise is possible unless it is on Democrats terms? How is that compromise?
slodan: It's what the peole VOTED FOR!! They REJECTED the GOP stances and embraced what Obama wants to do. Certain things are non-negotiable!
JUST REMEMBER
For the past 3 yrs every time a biill was introduced to close loophole on such things as
- giving 10b a year to oil companies
- removing tax credit for companies that actually would move jobs offshore
-even give tax credits to companies to come back to the us with job
IT WAS THE REPUB's that filabustered or blocked the bills from even coming up for debate.
SO WHY WOULD YOU BELIEVE THEM NOW WHEN THEY SAY, Close loophole and limit deductions?
what tax credit does a company get for moving offshore? No one seems to know about that tax credit.
Please tell me what tax credit pays me to move my business overseas.
slodan. Any company that moves offshore is EXEMPT from US taxes until and unless the money is returned to the US! It isnt a credit, it's an EXEMPTION! Im SURE they have other tax credits too!
Government is working just like it was designed, checks and balances. Lets go over the cliff. The majority wanted big government, so let them pay for it. Stop the back room deals and closed door negotiations and bring this in the open. I want to see debate. I want both sides to tell what they want to cut.
AGREED TOM!!! AGREED!!
The democrats had 800 billion in new revenues on the table last term, now its 1.6 trillion. So here we are, the house repubs are putting 800 billion in new revenues on the table.
I would like to know if the new revenues through tax reforms, would apply only to earners at a certain income level or if it would be across the board. If the reduction in exemptions and credits would only apply to individuals/joint filers at a certain income level, that would be great. That way we still get more from the upper income earners, and the middle brackets are still allowed to file for dredits exemptions and deductions.. This solves the same issue without raising rates.
Tax reform is what we need, even if it means everyone has to pay a little more, and people who pay nothing should pay somehting, even if its only 50-100 dollars. By a little more, I don't mean the outcome of going over the "cliff". Raising rates on only 250K+ is not a holistic solution.
It is only for the top 2%. According to the Progressives only the top 2% get those loopholes and tax cuts and tax savings and tax credits.
Great Plan!!! Slash medicare, medicaid, unemployment insurance and social security to pay for the decades long taxcuts for millionaires and bloated Pentagon budget. Hurrumph! Now's thats a plan working people should support. God I love the GOP. Remind me that there is an evil in this world that transcends Satan.
wow, you must live a miserable or evil life with a diatribe like that. Its called reforms. If you call it slashing so be it. I call it sustainability, ever heard of such a term? So which is it God or Satan? lol
mango
Isn't Obama's plan cutting 400 Billion from Medicare? Isn't that slashing Medicare?
LET THE REPUBLICAN OBSTRUCTIONISTS IN CONGRESS KNOW YOUR DONE WITH THEIR DELAYS, DISTARACTONS, AND LIES ABOUT ABASSADOR RICE !!! AND THAT IT'S TIME TO PASS THE MIDDLE CLASS TAX CUTS !!!!!! ADD YOU VOICE NOW!!!
Add Your Voice Here ->: http://www.whitehouse.gov/issues/taxes/tax-cuts
TELL BOEHNER AND THE LYING REPUBLICAN OBSTRUCTIONISTS IN CONGRESS TO STOP THE DELAYING, DISTRACTING, AND GAMES AND PASS THE MIDDLE CLASS TAX CUTS NOW!!!
Add Your Voice Here ->: http://www.whitehouse.gov/issues/taxes/tax-cuts
The plan is called the 'Grover Norquist Manifesto'
Grover Norquist, the Rasputin of the Republican Party, threatens retaliation if the 'weak-sister' Republican Congressmen don't vote his way.
I wasn't aware you were allowed the threaten United States Congressmen.
However, if these Representatives are so weak they can't think for themselves, they should be removed from office and be replaced by those who represent the welfare of the United States people.
weeeeeeeeeeeeeeeeeeeeee.lets all go over the cliff together.be careful what you wish for brain dead liberal back of the check signers ,47 percenters.this is your baby so embrace it and own it.dont be shy.this is your masters plan. dumb old republicans just trying to keep the country moving.you sheep if you just lifted your heads from the trough you would see how oboma and his minions are,but no,too busy gettin yo check.good luck all in the new peoples republic of america.
Why do the Republicans care HOW their taxes are raised - both ways will affect the richest more than anyone else...could it be that they know the rich will be able to hire lawyers to find NEW loopholes to replace the old loopholes, and that therefore their tax rates won't really go up? Or is it simply because of the stupid pledge they made to Norquist years ago? Get on your lifejackets, people - we're going over the cliff.
van amn
By cutting loopholes and deductions MORE of the rich will pay taxes. By cutting Tax Rates the rich will just move their money into a loophole and PAY LESS TAXES. By cutting loopholes and deductions you increase the number of people paying taxes. SEE HOW THAT WORKS??
"Going over the cliff will hurt our economy and hurt job creation in our country. It’s one of the reasons the day after the election I offered a concession to try and speed this process up. Unfortunately, the White House responded with their ‘La-La-Land’ offer that couldn't pass the House or Senate and was basically the president’s budget from last February," House Speaker John Boehner told reporters on Capitol Hill at a briefing detailing the plan.
This is being serious? This is the way to forge an agreement? It sounds like Boehner is saying, we are right and you are wrong. Wow!!!
GET REAL
Bonner and McTurtle are both using the RYAN plan as their example of what to do.
NOW WHO IS SERIOUS?
Ddn't we have an election that put to rest the direction?
So how is Obama doubling the tax increase from what he campaigned on SERIOUS??
non of these plans say anything about all the money we spend over seas why do we have to support all these 3rd word countries? we cant keep our own country going
The GOP offers a purposal huh ?!? Let me guess what it is ...
#1 ON THEIR LIST!!!!!!!! NOPE its not us Middle class It's: Lets not Tax Millionaire and Billionaires any more (after all they're ONLy making record PROFITS like they have been for the last 2 Decades!!)
Lets SEVERLY cut Medicare and Medicaid (And let the Middle Class PAY make up for Republicans NOT Taxing the RICHEST!)
I could go on and on but it's ALL JUST THE SAME OLD TIRED, OUT OF DATE Republi-Dumbs BS they ALWAYS try to pull!!! MORE for their Rich Backers they work for and LESS for the Middle Class else!!!
TELL BOEHNER AND THE LYING REPUBLICAN OBSTRUCTIONISTS IN CONGRESS TO STOP THE DELAYING, DISTRACTING, AND GAMES AND PASS THE MIDDLE CLASS TAX CUTS NOW!!!
Add Your Voice Here ->: http://www.whitehouse.gov/issues/taxes/tax-cuts
Ahh yes, the old Romney/Ryan plan of closing a few "loopholes" to generate a trillion dollars.
Good luck with that.
Come on rightie cry babies all together now lets say it: P-R-E-S-I-D-E-N-T O-B-A-M-A
No-no I heard some of you in the back Whimpering Romney! We all know how much you wanted that lying radical scumbag to win but that's only because your braindead republisheep and like fooling yourselves with sadistic right wing fantasies ! OK TIME TO WAKIE WAKIE all together now : P-R-E-S-I-D-E-N-T O-B-A-M-A
Hahaha Whiney Azz lil Losers!
Flat tax, why should a few pay for the over spending, foolish spending, stupid spending of the white house. Or....go over the cliff.
Atta boy McConnell & Boehner and all the rest of you bought out useless goofy Repuli-dumbs! Be sure and Hold those NAILS nice and straight for US while WE seal your Coffins!
Republi-dumbs - So stupid they haven't realize yet they have no bargaining power and that their just the punch lines to a bad jokes!!
OH BY THE WAY REPUBLI-DUMBS JUST LIKE YOU BELIEVED THAT WOMEN AND HISPANICS WERE GOING TO VOTE FOR MYTH ROMNEY AND HE WAS GOING TO WIN WITH A LANDSLIDE! KEEP BELIEVING IN MCCONNELL AND BOEHNERS BS!!! HAHAHAHAHAHA IRRELIVANT JACKAZZ'S!!
History repeats itself! Same posturing and obstructionism of the past 4 years! Neither party wants to take credit for the revamping of entitlement reform, so their both avoiding the issue like a hot potato, but the Republicans are especially repugnant. The Repugs want to save face at the expense of 98% of the American people, so let's keep passing the proverbial buck rather than abandoning your precious 2%. I don't know about the other 98% of the working middle class, but I paid almost 40 years into Social Security and Medicare. These are NOT "entitlements", they are benefits we paid into out of our weekly checks with a promise that they would be there for us in our so called "Golden years! I know you don't have to worry about your "golden years" with your guaranteed salary. Frankyly, I don't know why we pay you a salary for nonrepresentation! I'm all for paying my fair share of taxes! Hey Repugs, how about not holding us hostage with your non-negotiations and allowing the 2% to pay their fair share! The rest can be sorted out later! This shouldn't be a game at our expense! If you can't do that, well let's all take a ride over the cliff and you'll be in our thoughts in 2014! What's another recession for the sake of the 2% you value?
TELL BOEHNER AND THE LYING REPUBLICAN OBSTRUCTIONISTS IN CONGRESS TO STOP THE DELAYING, DISTRACTING, AND GAMES AND PASS THE MIDDLE CLASS TAX CUTS NOW!!!
Add Your Voice Here ->: http://www.whitehouse.gov/issues/taxes/tax-cuts
I guess its the White House's turn to laugh. How about this Mr Speaker: Increase tax rates on the top 2%. Clsoe corporate loopholes and subsidies for large corporations and industries like Oil & Gas. Means test for medicare & leave Social Security alone. I'm pretty sure THAT is the kind of plan that the American People said they wanted. YOU LOST. Get over it & start COMPROMISING and DOING YOUR JOB!
FORWARD!
How many more years can we blame Bush. President with twitter account. Who's doing all the grand standing surely not obumba.Someone please show me were this Jacka** is helping small business as he claims or is it big business were the unions are.( you know the true)