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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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Only until the past 5 years have I really began to follow politics. What a wake up call!! Has our government always been this disfuntional? This is such a shame. It looks to me like the Republicans will do or say anything as long as it's against President Obama. They have forgotten the reason why they are there. TO SERVE THE PEOPLE! As i see it the President won the election... let's move on. Everyone should SUPPORT OUR PRESIDENT.
You are right, congress was elected to serve the people, and the people voted in a GOP congress to keep this president in check. The GOP is ready to compromise, but Odumba will not move a bit.
"Only until the past 5 years have I really began to follow politics. What a wake up call!! Has our government always been this dysfunctional?"
No it hasn't always been this disfunctional, Obumba is the great divider.
"It looks to me like the Republicans will do or say anything as long as it's against President Obama."
Correct, that's because most things Odumba wants to do will not be for the long term good of the country.
Our congress was voted in to serve the people, not to follow Odumba blindly. The congress is ready to compromise, but where is Odumba.
I voted libertarian, you can't blame me!!!
For the sake of our children and our children's children, here is what has to happen. Revenue has to increase, spending has to decrease, entitlements have to be reformed and growth has to be unleashed. So how do you accomplish all this at once? Not easy, but we have to try.
Doesn't have to be at once. That is what the politicians get paid for...to govern and do what is best. Even one step at time is better than "No!" to everything.
Going over the fiscal cliff resolves a sizable chunk of that.
Amazing that after all the spending in the Bush era for unfunded wars and drug plans, and every GOPer signing on to the "Deficits don't matter" bandwagon, they all became fiscal hawks in January 2009. That "come to Jesus" moment, of course, had nothing to do with the fact that a Democratic President was just elected, did it?
Dick Cheney........"Deficits don't matter".
Yep, not when we go to war for Halliburton and his oil buddies.
Now the past 4 years it is the only talking point after 5 million jobs lost during the Great Recession.
Where is the revenue going to come from? Talk to Dick.......it doesn't matter!
You liberals may as well quit harping on the 2%.
Even if you tax the crap out of them it will not make a dent, and WILL screw up the economy more.
The uber rich just love dummies like you who carry water for them. Good word buddy!!!
How about we not tax the rich at all. After all, they are the "Job Creators" now aren't they?
$250,000.00 is Uber Rich?
Yes they are Ozzie Boy.
When was the last time a poor man gave you a job?
You liberals have a "Plan" for everything.
And its name is SPEND.
Go occupy main street.
That is what you will be doing when you cut your own throat.
The unemployment office is on the corner of "Spend and Main".
Ozzie, these so-called job creators are sitting on two trillion dollars and still no jobs. Their taxes have been historically low since the infamous Bush tax cuts and still no jobs. We could forgive them of all their tax obligations and it wouldn't help create more jobs. This whole job creator rhetoric is nothing more than GOP BS.
I got news for you burn... how do you think they got the money in the first place?
They worked for it.
You can too, you live in America.
AND people with money have to HIRE people to make them MORE money.
What the liberals are doing is blowing smoke up your ass.
And you are loving it.
Going over the cliff will stop the back room deals. Let's see some debate in the light of day. Government is doing what it was designed to do, checks and balances.
John Boehner is the worst Speaker the House has ever had. He is not a leader and this is proven every time he opens his mouth. It's sad that he lets this tea bag group in the House boss him around.
Also, for the year 2013 the House is scheduled to be is session for 126 days. Wow, a great part time work schedule with a great salary and benefits for doing almost nothing.
It's time for Mr. Boehner to do the right thing and step aside as speaker.
I clearly recall a real numbskull as speaker of the house who once said "We will just have to pass the bill, so we can see what is in it!" That is about as poor as it gets.
And as nasty as old wild bore, to boot!
The "Fiscal Cliff" returns us to Clinton era tax rates and cuts military spending. I distinctly recall America doing pretty well under those tax rates and now everyone is acting like it's the end of the world. It's not.
I agree. All these liberals praise Clinton and love big government. Let them pay for it. They want the rich to pay more. They pay the most, when we go over the cliff.
I for one, have had enough! Let the fiscal cliff fall and then we will deal with the aftermath. Let the taxes and go up and the economy go down and into another recession. After the dust clears, then and only then will the citizens finall come together and demahe nd that we have representation that can work together and get things done for the benefit of the people instead of the benefit of the politicians. The republicans want the middle class to lose more deductions such as the deduction for the interest on home loans. Now i wonder just how that will make the housing market recover and more americans wanting to own homes without that deduction. If you remember when Ronald Reagan the "great communicator" said "read my lips, no new taxes". After he was elected, to the delight of the rich, he eliminated so many deductions for the middle class that the government received more in revenue than if they had raised taxes. It seems like a viscious cycle and the middle class loses again.
Steve,
I couldn't agree more. Let it happen...let us jump off of the cliff and see what happens. It will certainly put more pressure on Congress to pass middle class tax relief and Republicans will have to go along with it unless they want to be seen as though their only working for the rich...which is true.
Steve, that was George Bush I that said that.
So....
The counteroffer is the Ryan budget?
LOL
They lost the election, why should we implement anything related to their failed budget proposal?
Why??? Cause in their dark twisted minds they still have not accepted the thrashing they took. LOL
So you want to cut foodstamps so more kids can go hungry is that it? And I'll bet just like Romney you want to piss away even more money on the military even though the Pentagon itself says we don't need it.
Re-Elect
Is that your counter-offer to the past 4 years of economic nothingness?
The counter offer is Obama's Simpson-Bowles commission that was bi-partisan.
Obama only wants the license to indebt us further- no cuts to welfare/foodstamps entitlements/ and no debt reduction- only tax increases which will not lower our debt just increase spending- his minions must be obtese.
Where were you for Dubya's 8 years when he spent us into ruin? Did you object to his 2 UNFUNDED WARS along with his UNFUNDED drug plans and irresponsible tax cuts for the rich?
But I'll bet your all gung ho to piss away more billions on the Pentagon, right fella???
Obama spent more in 4 years than Bush in 8. Going over the cliff, hits the rich more. It cuts defense and brings us to the old Clinton tax rates. What is your bitch?
Ozzie
I agree that the wars turned out to be a disaster, but Obama did not have to escalate Afghanistan, so this one is on him.
Next, you are aware that the tax cuts have been in effect since 2006 and the highest tax revenues generated in the history of the US were for FY 2007 and 2008?
I have stated this several times before, it is not the tax rates that generate the revenue, as much as a workforce that is participating and a lower unemployment level. Get the workforce partifipation rates back to where they were in 2008 / 2009 and then keep the unemployment rate at 7.9% and this will generate more tax revenues than allowing the Bush tax cuts to expire on those making $250,000 or more.
I didn't vote for this idiot nor the last- we have not had a worthy person in my lifetime and by the looks never will-both sides spend money like water- I feel sorry for my grandchildren-oh well- falling govts always cleanse themselves
freelunch4all
"Obama only wants the license to indebt us further- no cuts to welfare/foodstamps entitlements/ and no debt reduction- only tax increases which will not lower our debt just increase spending- his minions must be obtese."
That's not what the article you're supposedly commenting on said. Have you wandered off into another string accidentally? Did you come here to comment on the version of the "truth" being offered somewhere where even "Merkins" aren't allowed to comment?
your ratiocination proves you are one of Obama's minions and are ready to follow him into the blackhole- clearly you are as narcisistic as he
Obama has yet to do his job with the budge last 3 years, why would anybody even consider him too do anything but maybe change terms too a life term.I'm really starting too think his goal is to do so much damage that it will weaken the country to point where he can become a dictator. He really has too point done that ,now he has dead locked the House last 3 years with no plan or leadership too FIX anything.No President has ever been so worthless and self centered God like view.
Uh fella, we just had an election. The American people disagreed with you. Perhaps you missed it on the news.
Nearly all Germans supported Hitler as well-
I'll give you the budget although he has lowered the deficit something most don't know, but God like? Bush Jr. didn't think he was god or do damage to this country? Who was President on 911, what President took us to war over wmd that did not exist? What President oversaw the greatest capital loss in countries history? What President created the largest entitlement program and did nopthing to fund it? What President oversaw the greatest number of lost jobs over a six month period in history? What President and Vice President said, "Deficits don't matter?" the answer to all of these is George W. Bush. I don't want to live in the past but get real if you don't like Obama fine I've never been a fan but a comparison of the last two Presidents makes Obama look like FDR, Lincoln and Washington all rolled together that's how bad W was.
If all the tacks in your box are that dull, I'd go ask for a refund freelunch... Hitler? That's sooo last year!
Let me just say one thing in defense of the House Republicans, they have a very good point about the Top rate. The very wealthy do not pay the top rate they pay the dividend rate that also applies to the captial gains rate. Let the Republicans keep the top rate were it is and return the capital gains rate to 25%. Now that will hit the retired as they withdraw from their 401ks and people like me that have investment accounts we draw from but it also gets the Romney\Buffet class niether of which makes more than 250k taxable salary that the top rate gets.
As for the retired folks lets finally get real the present retired class is in the best position of any upcoming class to tolerate a cut. They have a high rate of folks with additional pensions and defined benifit packages that suplement their income something the rest of us never will have and in todays dollars they earned a lot more than any of the upcoming retirement classes. Enough of never touching them while their children get raked over the coals.
Romneys' children called, and now that they're no longer busy "servin' 'Merka", they're asking that their Fathers etch-a-sketch be returned by the Republicans that just used it to come up with a "plan"...
Still ladling turds out of the punch-bowl from their convention i see... Still dead-set on "protecting the job cremators" from having their tax rates changed from the historical lows they stand at now... Hmm. Let's see now... History shows a lot more jobs being created when "job cremators" were taxed at extraordinarily higher rates, and virtually none at the current rates. Is anything more expensive in 2012 than it was fifty years ago?... I think that there are more than a few Republicans still in office that are getting re-election and "left behind" mixed up...
In much the same way that Obama mistook them for Americans at first, expecting them to help legislate on behalf of America, the voting public looked for a balance (of sorts) under the impression that NOBODY quintuples down on stupid. Your bad... Just cost us two years on their insurmountable path to irrelevency.
History has shown that every time the U.S. goes into recession the government bails out the economy. It also shows that after every recession when the economy recovers the deficit get paid off naturally, so our politicians should stop focusing on austerity, which europe has shown to be an economy killer, and instead focusing on recovering our economy. If our economy would just recover, then use of the social programs would go down and there would be no need to drastically cut social programs.
Really? What happened in the last recession?
Lets roll this bad boy off the cliff already. I was smart enough to be prepared for the day which everybody and their mother saw coming months ago no matter who won the election. Most Democrats fear it because they refused to prepare for it. Most Republicans fear it because of it's uncertainty to the economy ($).
In a country that far out lives our means we definitely need it. If I have to pay my bills on time and live within my means then so should this country. Those that dont need the governement pay for too much of it as is, and those that abuse the government dont pay near enough.
Putting a band-aid over a bullet wound doesnt stop the blleding.
One more thing Mr. Boner, it is YOU and the GOP who are in "la,la land"
What a bunch of idiots. Really, in 2008 you tried to run a frozen popsicle for VP, what should we expect next??
Lets be like France ...They increased their taxes through the roof and now all sorts of business's and people are fleeing the country to avoid a 75% tax rate. Evidently, all of those free "social" services are not so free. Let's see what happens when they run out of other peoples money. Increase the tax rate lower the tax base. It's simple math.
Relax the tax rate goes up 3% to 39% not even close to France... but keep believe the rich people on the right that it will kill jobs lol the same people that claimed cutting they taxes would create jobs
I hate to say this but I think we need to go over the cliff..that way we start from the begining...lock congress up and nobody leaves until there is a deal that works...and if it cost a congressman or senator his job so be it,,,I dont care if they are Dem`s or Republican`s . Tax cuts can always come later after things get better and they will in time... no the sky is not falling like some people would have you think either
quite simply put the republican party party of No hasn't changed a thing let them put it over the cliff then see what the great boner will say screw them six ways to sunday they will never change screw the 1% once and for all whats wrong with the democrats? vote to get rid of the party of NOWAY!!!!!!!!!
This will work
Taxes:
Raise taxes for over 250,000 to 39% (Clinton Rates)
Raise capitol gains tax from 15% to 20% on gains over 250,000
Raise tax rates for companies that out source jobs
Lower taxes for companies that increase jobs in the US
Lower corporate tax rates for US companies and raise the rate for foreign corporations
Only allow home mortgage deduction for the first house, Second home will get a smaller deduction
Cap deduction for charitable deductions max amount for deduction 5000.00
No deductions for political contributions
Cap deductions on income over 500,000.
Spending:
Close non strategic military bases
Cut military spending but do not touch veterans benefits
Have Welfare reform, Start with drug testing recipients of welfare, Home inspections to make sure the right people are receiving aid to limit fraud
Health care tort reform on malpractice to cut cost of doctors, helps with cost, cap death payouts to the average lifetime income of a person is max payout, If patient is not killed the payout either fixes mistake or pays for care of the patient.
Stop allowing doctors to bill the patient and bill medicare and medicaid, lots of waste there
Social security- wealthy people or all people who don't collect social security that are 65 and older receive a tax credit for not taking there benefits.
All people born after 1964, the retirement age is raised to 67yrs old. people after this age will be eligible at 65 but will not get paid full benefits 80% until 67 then 100% will be given
Cut all pay for congress, have a structured pay scale based on yrs of service with a cap on pay
These are ideas from both sides of the isle
I read your post quickly, and you have some good thoughts in there that I am sure many in both parties can agree with.
dlopez - This is the best plan presented so far. It covers all the salient points. There are political perils in many of the line items but only because the opposition (by line item) will demonize the solution. The truth is that this simple, straightforward assessment would put us firmly on the right path. I wish that we could put you in charge of the Congress to push this through. It's amazing how much we pay our legislators and no one has the intelligence (or the balls) to present this logical solution! Well done!!
I was born in 1961 my retirement age is already 67.
Drug testing of benifits is a joke it has caught less than .001% in states it is used and cost more than $200/test. Not to mention Coke, and most narcs. only show up in test for 24 hours all you catch is pot smokers and is some states thats legal.
Tort reform did nothing in Texas to help malpractice rates or lower health cost.
Doctors have to copy patients on all billing how else could they track what gets paid after all they are ultimatly responsible for payment.
I do agree on taxes. And the military could use a major haircut down to pre 911 funding would be fine by me. We have already have the five largest Airforces in the world, Airforce, Army Air Corp., Marine Air Core, Navy Air Corp., and the Us reserve Air Corp are all larger the next largest airforce in the world.
@Jim
No drug testing is not a joke also you taking about urine test hair follicle test are more accurate and detect drugs longer then 24hrs
If you do the tort reform that I spoke of yes it will cut cost I don't know what they did in Texas but that will work
No doctors aren't just notifying they bill both the patient and the medicare and medicaid they even do it to the insurance company.They wait to see who pays first if you pay and the gov't pays or the insurance company they don't refund the overage they just keep it
Once again I'm astounded at the Donkey Sheepspeak. Bush era tax cuts under Bush= bad. Bush era tax cuts under Obama= not only good but totally necessary to keep the economy afloat. Must be some really good Kool-Aide to blind that many people to the truth...
Donkey Sheepspeak. Susan Rice = Victim of bad intel from Intelligence Community. George W Bush = Lied to the American people... Even tho the 'Intelligence Community' from many nations said Sadam had WMDs.
The only consistency from the braying donkeys is donkey good, elephant bad.
IT is funny but the tax cut of the top rate and the lowering of the capital gains rate and dividend rate were all added to a bipartisian tax cut bill during conference between the Senate and House and passed on a party line vote including Dick Cheeny casting the deciding vote all the other tax cuts to the lower rate were bipartisan at the time and got wide Democratic support. So Democrats have always supported the tax cuts for everyone but the top 2%. In fact it was that conference passage of the additional rate cuts that made the tax bill called the Bush tax cuts expire, the CBO determined it would create to much debt and therfore could only be passed on a temporary basis. History facts they don't alays help your cause do they but feel free to look it up.
The devil is in the details. What are the specifics of the Republican proposal? I can't see the President giving in on the top tax rates because the majority of voters have endorsed that idea; however, there should be a counter proposal to the Republicans that includes some of their talking points. This is the definition of compromise.
Given that the Republicans are currently in a "tail between the legs" position, I suspect that the White House is going to insist on the higher rates that Mr. B is opposing. Whatever happens is just a precursor to a larger discussion in the new year on entitlements and tax reform.
the total worth of the upper 2 percent is 1.3 trillion last year we spent 1 trillion on welfare alone- Obama is full of crap which is eaten by his base- I guess they can't comprehend math.
The value you put down is not the total net worth of the top 2% we have estates in this country woth more than that 1,3T figure you put out. That may be the total tax collected but not worth not even close. In fact it's a laughable figure. What have you been eating?
If your math were right, that would only mean that the increase on the job "cremators" would do not much more than help feed and house the poor... Looks like you might be the one that's math-challenged.
Why does NBC carry Boehner's water, and just xerox his blurtings without critical analysis? Because NBC is owned by millionaires, that's why.
NBC carries Boehners water.
That is a laugh
What an idiot. NBC is as liberal as they come.