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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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As far as I am concerned - lets go over that cliff - I agree with Obama on this one but if it comes down to it, I am willing to pay more taxes as long Boner, McConnell and all the other Repubs and their 1% buddies get nailed to the wall with a spike...
Oh ok, I get it. Only republicans have rich friends. LOL! Man, what was I thinking?!
They obviously just put 800 billion in new revenues on the table.
NO Democrats have rich friends also. But its only the Rich Republicans that think they should not have to pay taxes. And 800 billions would be like giving a whale a sardine for dinner.
CVP - don't be an ass - I know everyone has rich friends - but the repubs are asking for it...actually trying to avoid it like Michael said...
Michael - Any income tax increase on only the top 2% of income is sardines! DUH! that is why its not a real solution, more like a penalty. A real solution is tax reform. Taxing the 250K+ is not reform, sorry....
Ok straight F - Then I guess the dems will be nailing their friends to the wall too.
All of them...
I would like to just come out and say that Boner's proposal is idiotic, and a complete slap in the face of the middle class.
No, I didn't read it. Why bother? EVERYTHING he does falls into those two categories!
For those screaming Republican intransigence, did you read the did you read the part about the proposal being "based on fiscal commission DEMOCRATIC co-chairman Erskine Bowles’s proposal to the super committee?"
For those crying the rich (which I am not) must pay their fair share, did you know the top 10% already pay 70% of the income taxes in America? What is fair? 80%? 90%? Will you ever be satisfied?
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
You don't have a leg to stand on with the proposal Obama and Giethner just pushed, LOL! Thats why you keep posting the same crap over and over, you're clearly on a bias agenda. You can't call anyone an obstructionist when the side you support just put forth a proposal that woudn;t vene PASS THE SENATE and asks for more spending! please, more spending and no oversight to the debt ceiling? Are you frikin kidding me? Thats not good for anyone regardless of party.
I have not problem with paying more. Lets go over the cliff so the 2 percent can start paying any at all.
What I find interesting is this: IF the democrats/Obama laugh at this without picking it apart and saying something like OK we like this but not that then the naive America public (for the most part that is) will think it must be bad simply because Obama says so. If however the democrats counter with a proposal of their own and the republicans scoff at it and the democrats/Obama make the claim that we are headed off the fiscal cliff and it is all the fault of the republicans for failing to negotiate, the naive America public will believe it truly is all the fault of the republicans. The art of negotiations seems to be dying in Washington these days. It seems that when it comes to the democrats/Obama it is their way or over the cliff we go and all they have to do is point the finger at the republicans and people are stupid enough to take what Obama says at face value without questioning why and asking for facts not BS.
At any rate the proverbal ball is in the court of the democrats/Obama now with this proposal from the republicans. If they flat out reject this proposal with no effort to negotiate with the republicans in any form, this is one American who will not be fooled into buying Obama's it's all the republicans fault excuse for furthering his agenda to financially ruin this country!
How long till the next election, when we toss the republicans out?
So you would rather live under a dictatorship? We have a 2 party system, thats the way it should be and it will always be that way.
Why is it that "less revenue = cuts to education"? Why does he go right there? Why can't it be "less revenue = cuts to entitlement programs? or "less revenue = cuts to research grants to study the african wood fly" Or "less revenue = cuts to government subsidies to Solendra and Tesla?" Or "less revenue = cuts to being the world's police force". Or "less revenue = cuts to any of thousands of BS government programs no one wants or needs?" Why does this clown feel the need to immediately jump to cutting education? As if there is NOTHING else we could possibly cut. So tired of this guy using education / jobs / healthcare as tool to scare the american public. If you're not for raising taxes, then you MUST also be against education! Stop it! Quit trying to scare us and start paying attention to how you're wasting OUR money!
ATL, I don't know. Why can't it be less revenue to piss away on the Pentagon and unnecessary wars? I'll bet you think that the nearly TWO TRILLION DOLLARS Dubya cost us in Iraq was money well spent, huh???
"Dubya" is gone, HELLO!. Its too bad Obama did not learn from Bush's spending mistakes. 2 wrongs apparently make a right to you. At any rate, Obama has already spent more than bush ever did, even with the Iraq war.
Ozzie - did you not see where I said "Or "less revenue = cuts to being the world's police force"? Pay attention if you want to have big boy conversations.
And besides, whether Dubya started it or not, Obama continued it and has spent more than Dubya ever did on it. If Obama would quit blaming the last guy, and start accepting responsibility for what is happening RIGHT NOW, maybe things could get done.
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
ok people does any body want to know the simple way to fix our economy? well here you go. dont raise taxes or even cuts deductions for the rich, just initiate a 10% flat tax acros the board and then everyone will pay their fair share depending on what you make. it's that simple, but congress doesnt want that to happen because then they would get less votes for re-election when thier terms are up,because the lobbiests and special intrest groups would be sour with the politicians for making them all pay their fair share of OUR COUNTRIES TAX burden. it's ok to be rich just pay your fair share and be done with it. and i know i am stepping on some-one's toes but i dont care. at least i have the balls to say what everyone else is thinking. in the mean time we will ALL SUFFER if this isn't done to save our countries economy. by doing a flat tax across the board then it becomes fair for all and OUR NATIONAL DEBT will go down fast and then THE OTHER NATIONS that have bought into our country wont have a controlling factor in OUR LIVES!! wake up people and think about it. you know deep down inside i'm right.
I have no problem with a flat tax and no deductions but I think it should be closer to 30 percent.
We've had two wars.. They have to raise taxes people. For everyone...
It appears the GOP's is up-to-no-good, again................
wondering if Gov. Romney helped crafted this new plan?
...........................MR NO SPECIFICS!........................... ....
You say this, when the DumbA#!@ that is sitting in the White House has his entire life locked away by lawyers. He has a free education paid by US tax Dollars,( cause he said he was a foreigner) is an admitted druggy, and is more then likely the Communist is parents always wanted!
It is so amazingly hypocritical that the supporters of the guy who has run the two most vacuous campaigns in history ('Hope & Change' and 'It's still all Bush's fault') demanded specifics from Romney and now the Republicans. You Lefties are funny.
Yep, Double standard is their only standard. Most of us are willing to admit Bush's mistakes. But bush is gone, and Obama is still here making the same spending mistakes.
Hey Harry, how have your ideas worked for you own broke state of Nevada. Same to Obama whose state of Illinois is just as bad. Has anyone noticed that the Demoncrats making the most noise about the GOP budget plans are representing states that have some of the biggest deficits? Sounds like they don't know how to fix a problem, as much as they like to add to it.
Let me give you my plan, lets stop paying for any entitlement for one month, just not pay anyone anything, a very large savings but it will hurt some business. Then do the same with taxes, helps everyone, hurts Government! Then during this month revamp Unemployment, The tax code,(3 teared flat tax 5%/10%/20%) and the so called health care programs including Medicare, Medicaid the and the Clown's plan. Straight forward bills ( they must include a 10-100% Cut) from each side of the aisle 30 days to discuss, no amendments and a straight up or down vote. One or two days discussion limit and Harry Reid is not allowed to stall any bills introduction.
"So Called health care programs"? What the hell do you call Medicare?
Oh, and it's Harry Reid's fault now that we're in this dilemma? What the hell do you think your party did when they controlled the Senate? Not to mention the fact that your party has set the all time record for filibusters, drastically more than any other congress in history. And the filibuster was never meant to be abused this way.
I'm sorry but I believe the House as brought five or six budgets proposal to Senator Reid, not one has made to the floor for discussion. Obstruction, like beauty, must be in the eyes of the beholder. I do however appreciate the fact that you must agree with the rest of my comments. Thank You.
It is truly amazing to me that our politicians have the narrowed mindset that they have. We vote these guys into office and we complain about their stance on issues and do nothing. Guess what people, we have the power, so lets vote them out! Furthermore, I think it is appalling to take what little income the retired and elderly have and kick them to the curb, we will all be there soon enough. I say make it mandatory that the BIG WIGS, must, yes must, take a cut in salary and if they want to make a cut in something then cut their own throats and stop sticking it to the people!
I don't understand why the congress is always going after the peoplle that can't work and just barely get buy.we just can't seemto understand why they don't stop farm subsidy instead of elderly bennefits. I am sure there would be a significant savings.I can see the increase in retirement age but not the reduction of increases.I don't understand why a cola that dosen't include the everyday cost of living,food,gas .insurance,thats right I have to pay for my medicare every month.
This is just another retire that gave it all for 45 years and now the republican wants to just throw us away.I have said before that we should reduce there salary by at least half and reduce there staf to just 2 people.One to answer phones and one to open mail. The people we put in office are supposed to do some work instead of letting a lot of people transalte what they think is right.
Oh Well just thinking grampop
koch brothers revealed
Obama finally comes clean on his version of a 'balanced' approached...more 'revenues' (let's call it what it is, higher taxes) and more spending. The Dems are congenitally incapable of not spending every cent they can get their grubby hands on. His budget is a joke. Just like the last two which were defeated in the Senate without receive a single vote in favor.
HEY! Clueless old GOP white guys, "UPPER 2% PAY MORE!" Don't you get it? Clean out your ears, you dunces!
hey dumb@ss 98%MAKE YOUR OWN MONEY
The Republicans need to pass their plan in the House and send to the Senate. Let Harry and his boys do what they will and then the two bills can go to committee and be worked out. That is how it is supposed to work, but with the Senile Harry at the helm who knows what he will do. The White House has put out their pipe dream plan and the House has put out their pipe dream plan, now they need get them together and put people at ease.
If this was a personal budget you would have to get a third job just to keep up with your spending - or you could stop spending and pay off your bills and eventually you wouldn't need the second job. Basically we need to raise taxes and cut loopholes on all income levels, and cut spending. This will be tough but once we pay off the debt we could lower taxes for everyone. This is no different than any business or individual would have to do get solvent again.
You guys are the most ignorant liberals in the world. You guys are so uniformed, you all come up with one-liners as if the blame could really be put on the GOP. The whole 2009 recession was the direct result of Clinton lowering the interest rates. HE even got rid of regulations to make it more affordable for people to afford mortgages. This plan blew up in your face, now you get to clean up the mess. And all you're doing is adding fuel to the fire. Yet you all still choose to ignore this, and put the blame on the GOP. Unbelievable. You guys are the absolute scum of the earth. Lying pieces of @!$%#.
"Yuse Guys"??? Who the hell are yuse guys anyhow?
There can be no joy in watching our economy get any worse and the "us versus them" view that many people have expressed is no help. During the campaign, President Obama said that he would accept good ideas regardless of where they came from. It's now time to pressure ALL politicians to compromise and get this problem solved. Put away your Dem and Rep hats and solve this. We can all play politics later.
"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."
Nothing in the Preamble or the body of the Constitution says anything about protecting the privileges (or tax rates) of the rich. The top 2% did not suffer like most of the rest of us in the Bush economy meltdown, in fact, many of them thrived, collecting golden parachute bonuses for bungling and messing up the economy. It's time they paid.
It doesn't say anything about redistribution of wealth either.
"Nothing in the Preamble or the body of the Constitution says anything about protecting the privileges (or tax rates) of the rich."
No where in the Constitution does it say there should be a progressive income tax, or any income tax at all.
16th Amendment = Income Tax
At least they have a offer. It has bigger savings in it, but I can't see any way around taxes going up. If Obama really wan't 1.6 trillion in new taxes, the EVERYONE's will have to go up.
Here is something radical; an important principle in our country's history was the notion of "no taxation without representation". We should take that a step further to demand "no representation without taxation". Every American should have to pay at least $1 in federal income tax to have the right to vote. That would certainly change the dynamic in this country.
Here,Here!