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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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For the last 11 years Obama and company have been telling everyone who would listen that the Bush tax cuts were only for the "rich" and they needed to be ended. Now that the lie is about to be exposed, he is all concerned that letting them expire will be a hardship for the "middle class." Which is it, was he lying before, or is he lying now?
Obama doesn't want a deal of any kind, he needs the talks to fail so that he can try and blame the disasterous effects of his economic policies on the GOP.
He is by far the most incompetent President in history, but after the last election it is clear he knows just how stupid voters are. As long as he can dangle "gifts" from the government in front of voters, none of them will every ask where the money came from. Even when those same voters bitch about their taxes that those evil Republicans have forced upon them.
welcome to Greece!
You're absolutely right!
For the last 11 years Obama and company have been telling everyone who would listen that the Bush tax cuts were only for the "rich"
I have never heard anyone say that. I don't know anyone who thinks that. The discussion has always clearly centered around a dividing line on income above which the cuts would expire, below which they would remain. What color is the sky in your world?
Obama did clearly say while campaigning for his first term that doing away wtih the bush era cuts for any income bracket would be bad for the economy. Now, it's ok? BTW - The economy is still stagnate at 0% overall growth with all things considered.
Unrepentant con.,
First of all Obama has not even been in office 4 full years. After 4 years of Bush, we had a massive terrorist attack that Bush and his Repub congress did NOTHING to prevent and that cost trillions of dollars in increased military spending and 2 Repub wars including the one that they falsely used terrorism and nonexistent "weapons of mass destruction" along with other false pretenses to start.
Obama has had many good proposals to curb spending and increase revenue, the most important among them being raising taxes, especially for those who can afford it the most. Bottom line is wars require increased taxes, and with all the recent Repub warring and military spending increases we have trillions more in debt, and taxes must increase to help pay for it or our country will fail.
Another important Obama spending cut is to the military. We have the most expensive military in the world costing more than that of the next 20 highest spending countries combined!! We could make big cuts and stop much of the world policing and save trillions and still have the most powerful military that could easily provide for the safety of our country and even our continent and our close friends.
The ACA, although it has serious flaws that need repair, is also a step in the right direction in that it will indirectly curb Medicare and Medicaid, helping to end most of the billions and billions of dollars added to healthcare inflation costs (and the costs of Medicare especially and Medicaid that are added to the national debt) annually from the unpaid bills of many very sick people under age 65 who cannot and will not ever be able to pay their medical bills.
THe Gop can kiss my ass it is time for everyone to dump all holdings on an unstedy markek and flush this toilet
I sold all stocks last week. I am totally cash right now. I hope that Obama takes it over the cliff. That will be a new starting point for the United States. The Bush Regime just about ruined the United States and as always, the Democrat gets into office and it takes many years to straighten out what the Republicans screwed up Obama should no longer even talk to the Republicans, just let us go over the cliff. A new beginning.
Man, these hard headed F#ckers just don't get it. They are going to take make their own rules, even though they lost the elections. Anyone want John Boehner's job? It will be available soon as we can run him off!
Losing a Presidential election against an incumbent does not mean the fed gov is a 1 party system, sorry to break that to you. If anyone is making their own rules, its Obama. executive order by fiat, trying to stop congressional over sight to the debt ceiling, stifling the fillibuster, increased deficit spending in a stagnate economy, it goes on and on.
Any common sense person knows that the minority party does not make their own rules, and tax reform is not "making their own rules"
I'd rather see responsible cuts, no more raising the debt cieling and finding solutions not excuses. So if we go over the cliff - so be it. Obama wants authority to raise the debt ceiling without Congress approval, So he can be the Monarch?????
CVPDude
It was when George Bush said "I'm the decider, and I decide what is best."
Sorry stan but this conversation is about events from today, not 5 years ago. AGHEM, excuse me, but catch up! At any rate, most anyone would be the first to admit Bush's mistakes, two wrongs don't make a right or a leader.
Thank you for clearing that up for me CVPDude. You really think all Americans are as dumb as Mitt Romney labeled them, right? THink again!
Memo to the President, the House and the Senate: The campaign is over. You have jobs. Stop campaigning and DO YOUR DAMN JOBS. Take a cue from the Conclave of Cardinals, lock yourselves in a room and STAY THERE UNTIL YOU HAVE AN AGREEMENT THAT WORKS FOR YOUR EMPLOYERS, THE PEOPLE OF THE US. The only press conference we want to see is the one announcing the agreement.
Any rational person knows we are going over the "fiscal cliff." Why? Because it resets old, higher tax rates without ever having to vote on the floor of Congress and it requires everyone to make sacrifices, not just the affluent. Republicans can keep their pledge to not raise taxes. Trust me, we are going over the cliff, and it will not be the catastrophe that everyone is predicting. Once we go over the cliff, from there all the talk will be about cutting taxes -- no matter who we're talking about. Politicians can stomach those negotiations. Once rates are adjusted upward for all, then the fun can begin. The fiscal cliff is a certainty.
Skinger,
I think you're absolutely correct. However, once we've jumped off the cliff Republicans will be forced to cut a deal for the middle class at risk of further looking as though they only work for the rich.
From a political perspective this is all a lose lose for the Republicans.
I am personally sick of this 2 party system that is holding the country hostage. Get rid of the parties and lets all be independent.
Skinger. I certainly hope that we do go over the cliff. That move will be good for Everyone. The United States was thriving when Clinton was President. Taxes were reasonable for everyone. The downfall came when The Republicans got in and started cutting Taxes, Starting unfunded wars, unfunded Medicare programs ETC. The Republicans said that deficits dont matter, Per Dick Chaney. Deficits were no problem when The Republicans were in. Lets all go over the cliff.
Hey Fiesty...read your bio, now that your guy has been in for almost a full term are you working yet? If not, is it still W's fault? Just wondering...seems like your always one of the first to pounce on the latest press release.
Fiesty is a paid blogger for the DNC. Nobody could be that stupid without being paid to look stupid.
san antonio kid
"Fiesty is a paid blogger for the DNC. Nobody could be that stupid without being paid to look stupid."
You two, (Mark### and "the san antonio kid) on the other hand, just did it for free...
You test-tube babies out of the same think-tank or what?
The two sides are negotiating. It's now counter offer #2 for the Demos to come back with. Blame is not going to pay the bills and I think people on this vine are only interested in distributing blame. The Repubs may have a problem in 2014 if we fly the cliff but remember this: people's memories are short and congress people are elected by their constituents not this vine or some hangover from years past. Candidates have only to impress enough people within their district they don't need to impress the whole electorate. The top 2% already pay way more income tax in dollars than do the middle class or the lower middle. There's a lot of wealth envy going on in this vine also. Income from wealth should be taxed at lower rates because of the risk associated with investment. To make the argument that income from wealth should be taxed at the same rates as you going to your job is ridiculous. What are you risking? You go to work and you get paid. I would think it's better than not going to work and not getting paid. LOL IMAO and all these other cute little letter things I don't understand.
With the proposal Obama and Giethner just put on the table, only a complete stooge could blame the other side for not going along with a bill that would not even pass the senate.
Let's see, 1.6 Trillion in Obama fantasy savings.. (Or an extra 1.6 Trillion to spend is more like it) vs 2.2 Trillion. I'll go with the 2.2 Trillion in Savings.
Obama better take the deal to avoid screwing over us middle more than he already has.
His first term was a complete disaster, if he goes over the cliff at the very beginning of his 2nd term.. Boy it's going to be a long 4 years until we rid the white house of obamas..
Can you say. Great Depression 2.0??
maybe that is what he wants to ruin us. That's the one thing he's doing a damn good job at. I don't think the retards that voted for him understand what they've gotten us into, at least not yet.
If you read the full Obama plan, the tax increases happen now, the new spending happens now... the cuts... down the road a bit.
The Obama plan isn't really a budget then is it. Obama needs to hire an accountant to balance his books.
Obama and the Dem's proposal said it all, exteme. The amazing thing here is all of the left voters supporting it. It never ceases to amaze me.
The turd is out to destroy America while building himself up as GOD and spending, spending, only to get votes. Going off the supposed "CLIFF" will at least save the Repuiblic.
The turds are all still swirling around in the bottom of the Romney punch-bowl from Convention night. It was over so fast it never dried up.
get used to it chick. The makers will keep fighting against an extreme agenda.
The cliff seems to be the best option. Everyone grab a politician by the hair and pull them down with us.
They want to change the Consumer Price Index to save 200 billion? Aren't social security payments tied to the CPI?
MrEnergyCzar
good plan, leaps and bounds ahead of what obama wants and has proposed. we should go with it
Yea, sure pal. Too bad you took a major league whipping in the election. We ain't taking the advice of the dirtbags in your party.
Ozzieboy - it's a plan for a budget. Obama wants to raise the debt ceiling, borrow more money, and has no real idea what the country wants. It's Congress that makes the Budget. We should not spend more than we take in and stop kicking the can down the road.
That's all these people have Wyo. That is all they can do, is play this divisive class game and point fingers. They think just because a republican nominee was beat by an incumbent democrat, that we now have a 1 party system, lol. Its clearly an electorate fueled by envy and spite, and they're using that sentiment as an attack on the wealthy.
My advice to Obama. Do not trust any Republican. The Republicans still do not realize that they lost the Election. Do not do anything that they say or suggest. The Republicans are still trying to screw the Middle Class and the poor. Republicans are for the Rich only, and no one else. Obama should let it go over the Cliff if the Republicans do not agree with him on his proposals. Obama, You are thee President of the United States, Show it.
I thought we just had an election and showed these guys that "We The People" didn't like their ideas... Can Boner just shut up and leave the important decisions to the sober adults? Republican math has never worked and it does not add up now.
Enough of your BS republicans...
There is still nearly 50% of the populous. Thanks for showing us how much your willing to support a dictatorship. Its all BS huh? lol Tax reform and entitlement reform is just BS to you? The uneducated needs to be turned down, their noise is annoying.
Rather than deny our seniors their meager COLA ... eliminate all COLA for members of Congress until we achieve a balanced budget! In fact, why not cut THEIR salaries by 50%, require them to pay at least 40% of their health insurance premiums AND reduce benefits, stop all funding of pension plans until the nation is solvent!
Make the GWB tax cuts permanent for the middle class and let the GWB tax cuts for those making in excess of $500k annually - can't argue that those making half a million annually are "small business" - (be it salary, dividends, deferred compensation, etc.) expire. Stop ALL "corporate welfare", including tax subsidies for Big Oil. Limit deductions such as second home (lake front property/ski cabins), prohibit deductions such as "car garages", "show/competition horses" and, by all means, contributions to organized religion!
Consider also, eliminating the religious exemption ... religious "leaders" want to use their pulpit to endorse and/or criticize a political candidate and/or advocate a position on social/political issues ... let them! What a boost to our economy if all "religious institutions" were to pay income taxes on their "earnings" from tithes or otherwise!
mlwells
Lets get rid of their guaranteed lifetime pension and healthcare.
Do you get that at your job? I know I dont, and I own my own company, so why should my tax dollars pay someone that served as a 1 term Congressman who couldnt get re-elected, for the rest of their days?
With regards to your figure of $500,000., if I am not mistaken even Nancy Pelosi had suggested that in the last year or so.
Twas the night before Christmas, when all through the House
Not a Boner was stirring, not even a Louse
The 98% of American people were hung out to dry
In hopes that President Obama soon would come by
The Republicans were nestled all snug in their mansions,
While visions of money danced in their heads
While mamma has to explain to Johnny why he won' t have a bike,
and little brother Timmy won't get his trike
The Republicans have settled down for a long winter's nap, after they
gave Democrats a whole bunch of crap.
The GOP plans "$600 billion in health savings" - meaning cuts to Medicare, etc. after they pledged during the campaign to restore $716B that they said "Obama stole" from the program. What happened to that pledge less than a month after the election?
Mick, surely, you realize they had the fingers crossed, so the lies don't count!
Surely you can't expect them to get through "$600 billion in health savings" when they didn't win the election. How do you expect them to follow through on a campaign promise when they lost. The GOP is not in power. How dense are you? OH, I forgot you voted for Obama, pretty dense.
LOL boy ya have to give them credit, they are not only ignorant but they are proud of being ignorant! Hey GroupOfPervs check it out, we won, you lost, it's our way or off the cliff we go OK?
So you want 50 billion in additional stimulus spending? Do you want no more congressional oversight to the debt ceiling? Do you want more deficit spending? Don't be foolish. Winning or losing an election does not mean we have a 1 party system or a dictatorship. It also does not mean, Obama gets everything he wants. We have a 2 party system and branches of gov who serve roles that balances power. Go back to school.
Sounds like all the Obama groupies are like their leader. They are MOST interested in socking it to the evil rich people even if it means taking in the shorts. Lets ask the 99% if they are for socking it to the 1%. Why don't we ask the 100% if the are for socking it to the top 50%. Not such an easy decision then.
No one is for "punishing" the rich pal. Rather, we expect that they pay their fair share. In case you didn't notice, taxes are the lowest they have been in over 50 years and that didn't prevent your party from damn near destroying the economy. And yet dummies like you insist on carrying water for the uber rich.
The Walton family as in WALMART is worth nearly 50 Billion. Is your argument that people like this cannot or should not be expected to pay a bit more? We just had an election on this very debate and you folks on the Right lost.
You can't make the argument that they don't pay their fair share. Whether they should pay more or not is another question, but they already defintely pay more than an equitable share of revenues. Taxing the upper 2% is not a solution, and it solves nothing.
Bush spent less than Obama even with the Iraq war. It was a democrat who freed up mortgage lending standards so more people could buy a home. It was coming regardless of who was president.
.
The Blockhead Plan!
Save the rich!
Screw the middle class and retires on social security and Medicare.
Republicans claim to be the party of God, so we should ask them "What would Jesus do?"
.
.PS: IN emails, I asked my US Senator and US rep "What would Jesus do" since Republicans mostly claim to be Christians.
Do they answer that immigration is a separate issue and they'll deal with Jesus after they wreck things further financially? (They only recognize God in any form when THEY "use" it out loud).
Not sure why the lame ducks and tea baggers we voted out are trying to resolve this. Extend the deadline to March 1 (or April Fool's Day) and let those newly elected resolve it. The voters clearly approve higher taxes on the wealthy (loud and clear on that one). Another suggestion for raising revenue: have the IRS go after all those tax-exempt churches who weighed into the political arena this last election, thereby violating the conditions of their tax-exempt status. Can't have it both ways reverends.
People will be lovers of themselves, lovers of money, boastful, proud, abusive, disobedient to their parents, ungrateful, unholy,......
Well that's Politicians for you, they're all the same.
First off, congress should NOT close for the holidays until this is resolved. Additionally, every politician that is interfering with this issue should be removed from their office. Enough is enough. Tax credits and benefits to the wealthy should not be enjoyed on the backs of the middle class and poor.
My question is :
"If the Bush era tax-cuts were so good for the economy why did we almost go into another depression at the end of his term??"
The fiscal cliff is America's austerity program. I may be the only one thinking this, but we should be thankful that we have this to reset America's bad choices. We need it. Austerity almost always brings recession, so this should not be all that alarming.
Skinger. I totally agree with you. When Bush put us into the Recession, I did not hear about One person, not even one person who starved to death. We really should go over the so called cliff, believe me, we will all survive.