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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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http://money.cnn.com/2012/08/21/news/economy/richest-congress-members/index.html
Are these people part of the 1%? Big list of Millionaires here.
Look at the list of Dem 1%-ers... starting with comrade Soros.... don't hear any class envy BSers clamoring to confiscate their wealth....
the repulicans dont want to and never will agree to anything that is for the public. i think all politicians have to give up thier retirement plans and joing the rest of us and pay into social security. maybe then they will realize what it is and stop screwing with it. isnt is a pity that all the cuts come to what doesnt affect them or thier families. they get over paid and get all these perks and still want more. i would like to see 1 come out and take a "cut" in pay to help the situation. i will "NEVER" vote for a republican as long as this is thier way of screwing thw american public. Remember elecions will be coming around again and these damn republicans can be unemployed real soon and maybe something will actually get passed.
Where is the Democrats any better? Face it BOTH parties are out to screw the middle class. We can't just keep spending though and however it comes it will hurt.
Have you ever noticed that when Obama proposes a stimulus to "Create Jobs," that immediately after the bill's passage, it suddenly becomes a stimulus to "to SAVE or create jobs?!?" Hmmm,,,very interesting!
Ever noticed that "The Summer of Recovery" with YOUR stimulus money,,,,,,never really happened.
And we all know about "Shovel Ready",,,,(snicker, snicker - - chuckle chuckle!)
Why should we believe anything out of Obama's mouth??
Not enough specific details available. If all we have to go on is the recent past history of the Republican-led House and Paul Ryan's previous budget bills that the Republican-led House have recently passed then it will be another proposal that will seriously harm over 90% of Americans and may destroy the USA.
Recent past proposals by the House have included:
Huge cuts to Medicaid, the food stamp and other programs for the poor, severely harming countless poor infants, children, handicapped people and seniors, America's most vulnerable citizens.
Raising taxes for lower income individuals while NOT raising taxes for the wealthiest who can afford it most. The wealthy have benefited the most from capitalism and our government. The wealthiest got the largest tax cut of any group under the Bush tax cuts, and 10-plus years later they are still sending many jobs overseas to take advantage of the EXTREMELY low wages and benefits they can pay in these poor third-world and communist countries that would not come close to covering the costs of the most basic essentials to maintain life in the inflated economy of the USA. Ten-plus years after the Bush tax cuts we have very high unemployment. It is time to end the tax cuts for the wealthiest because the US has acquired many trillions of dollars more in debt over the past 10-plus years from nearly doubled-military spending in addition to two wars that have cost over $2 trillion and the war on terrorism, and THIS REQUIRES AN ACTUAL TAX INCREASE, especially on the wealthiest.
The Republicans (especially in Paul Ryan's budget bills) have recently proposed to essentially end Medicare for future seniors born after 1957 by privatizing it where the private insurance companies would again price most seniors out of the market as they did before Medicare was started, leaving future seniors broke and unable to pay for healthcare.
The Republicans would raise the Medicare age to 67. Humans have not evolved into a superior longer-lived species since Medicare was begun, they are just living longer, more productive lives and many are working longer because of Medicare and access to healthcare that allows them to maintain productive lifestyles longer. Taking away access to affordable healthcare for people ages 65 to 67, will only cause the early demise of countless many and countless many more will become totally handicapped before age 67 and unable to do much of anything. The Medicare payroll tax needs to be increased some along with other restrictions for this vital program, at least to cover the Republican Medicare D program which the Republicans never did fund.
The Republicans want to seriously cut back on Social Security benefits to pay their war/military debts and other debts. This is totally amoral. They are planning on literally robbing millions of people the necessary safety net they have paid 15% of their incomes into for over 35 years of hard work. This amounts to just plain robbery, and would lead to millions of homeless, handicapped, destitute seniors in the future and, as a result, much, much, much higher property taxes for younger working families as most seniors would no longer be able to pay any proper taxes, thus harming the education system.
Republicans want to end the ACA. The ACA, while it has many flaws that need repair, is a huge positive step in the right direction to curb the massive inflation of healthcare costs in the US by ending most of the billions and billions of unpaid medical bills by very sick, uninsured people, many of whom are older and broke and will never be able to pay any if much of their medical bills. These unpaid bills are mostly passed on to paying healthcare consumers through price increases across the board, and this is currently massively impacting the costs of Medicare that are spiraling rapidly out of control and adding billions and billions to the federal deficit every year and to the national debt. There are so many people over age 50 currently who have worked hard and steadily for over 30 or 40 years but cannot access affordable, adequate healthcare for their illnesses and other conditions of aging, etc. The ACA must be retained and its defects repaired.
By not allowing the necessary tax increases, especially on those able to pay them most, the Republicans will bankrupt and ruin this country. Wars require taxes and tax increases, and the last two very costly Republican wars, along with all the other increased military spending and Medicare spending and other spending that has never been adequately funded, will destroy the USA.
Obama is well on his way to borrowing and spending to ruin what is left of this country.
it's already toast!!
Much of the debt accrued under Obama was a result of Repub policies (when Repubs were in control of the White House and congress)--doubling military spending, over $2 trillion in Repub-started wars (one started under false pretenses), $100 billion and growing annually in the all-Repub-Medicare D (a good plan if the Repubs had funded it in any way), hundreds of other billions in other costs as a result of the 9/11 attacks that the Repub president and congress did nothing to prevent.
Most of the remainder of the debit accrued under Obama was a direct result of other policies and costs of government spending already in place when Obama took office, including all the dem and repub increases in congress pay and benefits, Medicare, Medicaid, food stamps and other programs for the poor, federal education and infrastructure subsidies, and the list goes on and on.
Another important problem is the ever increasing cost of the already most inflated healthcare in the world that the USA has had for well over 10 years, long before Obama. The inflated healthcare costs are currently a major reason Medicare is currently adding more to the federal deficit/debt than any other social program. Obama tried to address that and curb that by stopping a major contributor to US healthcare inflation--the huge costs of unpaid medical bills by the sick and injured under age 65 who cannot afford to pay their bills. This is continually adding to the cost of Medicare through the additionally inflated costs of these unpaid bills being added to the general paying consumers costs of healthcare. ACA needs to be retained and its serious problems repaired, rather than repealing it with no as the Repubs want to do.
Obama is at least cutting the costs of social program currently adding the most to the federal debt/deficit, and that is Medicare, which never has been adequately funded and needs a payroll tax increase (which the Repubs refuse) along with some restrictions and controls.
I see they are still singing the same tune that got their Mitten's and Pauli defeated:
"Many of the health savings track closely with the changes to Medicare first proposed in Wisconsin Rep. Paul Ryan’s budgets."
"Excuse me doctor, I have these coupons from the people at medicare, they said I could pay you with them. How many might I need for a bone marrow transplant?"
Better than trying to redeem SNAP cards for healthcare....
U.S. Speaker of the House Rep. John Boehner needs to be fired. If enough Americans start by telling the government (senators and congressmen) to get their act together, I believe we can make a change. Most Americals do not care about political party flexing. Americans care about results. The GOP is not looking out for the best interest of the average American in 2012 and beyond. No one in Washington should go on Christmas Break until this "fiscal cliff" is resolved. I think their pay should be held also and all perks until they become more fiscally responsible and do the job that the American people elected them to do.
Wow ...actually a balanced plan...It still needs work...but at least they are talking... I still would rather see everybody Pay!
the repubs lost because of their beliefs and behavior. they are angry and willing to punish us for it. they are bordering on sick
Repubs lost because the attack dog media smeared Mitt every which way.... free propaganda in addition to the Billion that Oblunder spent... but that media's not doing so hot.... might need a bailout!
What ever norquist is on he needs to get off of it and the republicans needs some real men n office who have some balls to not listen to a real lunatic like norquist. You can look at boenher and tell he is wrapped all around norquist private parts because he fears for his job period.
People like Walmart that want to make money off their hired work or bees. by paying them little to nothing for their time, people like Romney that wanted to abolish minimum wage, sure no wonder some of the business owners on here want to scream like a stuck pig about Obama. Obama wants fair for everyone. Guess what was abolished in 1865?
Get over it You lost
Look! Clever Republicans are always offering to change up the benefits that all Americans enjoy now, no matter what economic level they are at. The GOP always wants to negotiate benefits for those who aren't yet at retirement age!
This is the GOP clever plan! The GOP is willing to remove SS and Medicare from those who already have great retirements, or haven't yet gotten to a certain age, because the GOP can later claim that the new benefits are unfair and class-based, and should be renegotiated! This is the new "Red Herring" Republicans are trotting out now.
The attacks on our entitlement programs are designed to head right to the right wing Supreme Courts!
This is why Americans must demand that all Americans continue to get the same benefits for our entitlements!
As to negotiating the costs and forcing the Pharmaceutical companies to compete on drug prices, I would wholeheartedly agree that it could cut costs to Medicare by almost 500 billion dollars a year! But the GOP cronies won't allow that to happen, because they need the campaign finance promises Big Pharma will send their way if they refuse to agree!
The GOP is not representative for Americans! They only represent those who contribute to the GOP!
Mitt Romney said it best! "I cannot support the 47% of Americans who will never vote for me!"
The numbers are increasing, Mister Romney, and Mister Boehner, and Mister McConnell, and Mister Cantor!
Here's some words of wisdom from rock climbers for Republican members of Congress: "It is not the fall that kills you. It is the sudden stop at the bottom". For those Republicans too stupid to figure this out: You will be alive through the entire free fall before you go splat in November 2012.
In other words you're dead already....
Republicans are again hell-bent on obstructionism! They are hell-bent on blocking a tax cut compromise, even if it destroys middle-class and poorer Americans. Even Mike Lofgren, a past devout Republican staff member in Congress, writes, “Republicans act as bellhops for corporate America and the superrich behind those corporations.”
Also, he attests, “one of the reasons for all of these GOP rejections is a habit of political obstructionism.” Still more evidence they are not serious about deficit reduction.
Republicans have attempted to camouflage their solicitude for the wealthy and corporations with a fog of misleading rhetoric. The actions by House Speaker John Boehner and other Republicans to block the legitimate and helpful tax cut plan by our president — which by the way, even republican president Eisenhower demanded — is another weekly painful reminder that next election, if not sooner, we need to get these damned Republicans out of our offices and power, all of them!
They could also be calling on Boehner to compromise and have the wealthiest incomes pay more, as America austerely needs and wants.
If you taxed the rich 100% it would still not touch what Obama wants to spend. If you think he isn't coming after the middle class next you know nothing. Just like the Obamacare fiasco pass it then read to see what is in it. It raises tax"s and for everyone. The supreme court said it was a tax and the democrats agreed but only after it was passed. Before then it wasn't a tax. You can really believe what a democrat tells you can't you. The normal democrats can see what is happening but the liberals can't. I am a normal democrat and can say Obama has never told the Truth about any thing.
Actually, it probably would, but no one is stupid or sick enough to do that, but a 10% increase would help pay for those republican military spending increases and wars (that have cost trillons) by a substantial amount along with the Obama military cuts.
President OBAMA wants to end "charitable" deductions which will hurt faith-based organizations and also churches in America!
This proves that OBAMA is Anti-Christian and he continues to kiss MUSLIM Asses!
If the ring fit!?!
Coal Man You voted for Romney and he was going to cap it at 25,000 but when it's Obama your all against it (hypocrite)
Everyone in America should write to Boehner to remind him that the reason the Republicans lost was they don't know the meaning of compromise. Do they understand that you cannot have it all in a compromise but more than that, the compromise most be in the interest of at least the majority of Americans, not just the 1%. Health care is not a luxury, it is a human right and the responsibility of a just government. Most of the world has seen that fact. Health care cannot be on the table of compromise.
Well said Eric
The Republicans just don't get it they lost because the American people are fed up with them and their way of thinking. They say they will take money out of healthcare but won't tell you exactly what they will cut. Then tax reform exactly what will you do? It sounds like Romneyhood all over again speak in generality's without facts. Try it Obama's way and if it doesn't work they can say we told you so
It doesn;t take a math genius to see that MORE spending (Obama;s budget calls for a few trillion more in spending)will only DESTROY what is left of the economy. Try more of the insanity that has left us worse of this last four years? Are you smoking crack?
You lost go hide in a corner for four years and if you are good we might let you out
Boehner is not a leader. His recent proposal is the same old let the middle class pay for the Bush Administration extravaganza. No No No. They will not continue to hold us hostage. Enough of the greediness which the GOP is pushing.
You talk of greediness, while your dictator wicked king and family are spending 4 million a day on vacation in Hawaii, We see why you are so stupid and selfish in your blinded politics where you blame the blame game and are blinded to your own treasonous kings deceptions and greed.. F all you political blinded puppet idiots on both sides of this criminal governing system. You all deserve the death coming to this failure of a country and it's perverted society..
If most of America had been smart enough to get rid of this douche of a President, we would be headed in a positive direction come January 8th. Instead, we're facing 4 more years of failure, ineptness, corruption and arrogance. Who is Obama to decide that the so-called "wealthiest Americans" can pay a little more? These are the people who spend more to help this economy and these are the people who create jobs - not these fake government jobs that are being created. We're all sick of hearing his talking points about "fair shot and fair share." Everyone is this country has a fair shot at success and the only thing that holds people back is their lack of initiative and/or education. If he wants to see everyone paying their fair share, let's get EVERYONE paying the same % of income. 10% whether you make $10,000 per year or $10,000,000 per year - now that's fair share.
kemu So when the American people spoke and said they were fed up with the Republican party and their thinking where were you?
I don't believe that's what the American people were thinking. Now the real thought process and the scam currently being run by the Democrats is that you get your 49% of society that pays no federal income taxes all jazzed up about getting the money from those "rich people" in the 2%. Then you throw in the fever pitch about immigration reform and finally you add the young voters who are able to vote with emotion only and without a brain and it all adds up to an Obama victory.
Kemu As with any statement of this nature, there are some qualifiers and distinctions to be made. First of all, these numbers refer to Federal income taxes, not all income taxes and withholdings. Most workers have money withheld from each paycheck as mandatory contributions to the Social Security and Medicare trust funds. If you're self-employed, you pay 15.3 percent of your gross earnings in so-called payroll taxes. If you're employed by someone else, you pay 7.65 percent and your employer pays the same amount [source: Social Security Administration]. Many workers are also subject to state and local income taxes, property taxes and sales taxes, in addition to Federal income taxes [source: Khimm].That said, why don't 49 percent of Americans owe any federal income tax on April 15th? There are two main reasons: income level and tax benefits. The tax system in the United States is designed to be progressive, meaning that higher incomes are asked to pay a larger percentage in taxes. If your income level is relatively low, standard deductions and exemptions can quickly lower your tax burden to zero. According to the Tax Policy Center, a non-partisan research center, a family of four earning $26,400 a year will pay no taxes because the $11,600 standard deduction plus four exemptions of $3,700 each will lower their taxable income to zero
Pray not for this wicked people, wicked governing system, neither lift up and cry when praying for them. for God will not hear them in the time that they cry unto him for their troubles, the holly flesh has passed from among them and only when they do evil, then do they rejoice. For the Lord that planted you has pronounced evil against you. For the evil that America has done against themselves to provoke God to anger. The great praises of O-Abomination and the Lord Jesus has given sight to me and anyone with eyes that can see. This countries government leading the people to their slaughter as they devise folly against their own peoples rights and liberties and they will tell Gods people, do not prophesy in the name of the Lord or you will die by the wicked kings hands. For this cause the Lord will bring evil upon the men who rule America with wicked intentions and the Lords promise today is that he will remember me and thous who stand against this evil generation of dictators and kings of this fornication and blasphemy against our Gods purpose.. God dam America and it's leaders
Hey republicans take your heads out of the corp arse and do something right for a change. I for one am so sick of all the ca ca you all are throwing out , i just want to hurl. come on think of everyone ,not just the 1's lining your pockets.
Why should we give the President the authority to raise the debt limit on his own? Why should we agree to more government programs like Obamacare. Who creates jobs in this country? It's not the government. It is those that have the money. A small business that makes $250,000 a year is not rich. Most of them are barely surviving. What about the 47% of workers who pay no taxes?
I say we do the cliff and adjust afterward.
Yeah, it's called the grown-up's plan versus the silliness of the Obama team. I like how obama sez you can have "cuts" if it doesn't affect "job growth". How does cutting spending affect job growth???? By not hiring any more government workers. Thatis the only growth Obam seems to endorse. He is so dumbed down by his socialist dogma that he is truly stupid.
One of the least appreciated but easily-confirmed facts about the current state of the American economy is that the number of Americans employed by the government has gone down under President Obama. But apparently this is news to one the Republican Party’s most prominent tea party conservatives. During a roundtable discussion on ABC this morning over the size and adequacy of the 2009 stimulus, a flabbergasted Sen. Rand Paul (R-KY) asked economist Paul Krugman if he was actually arguing that government employment had gone down under Obama:PAUL: The thing I don’t understand is that you’re arguing that the government sector is struggling. Are you arguing that there are fewer government employees under Obama than there were under Bush?KRUGMAN: Of course. That’s a fact. That’s a tremendous fact.PAUL: No, the size of growth of government is enormous under President Obama.KRUGMAN: If government employment had grown as fast under Obama as it did under Bush, we’d have a million and a half more people employed right now — directly.
Once again the republicans want to help this country by giving their offers and not raising taxes on most of the American people. We are the ones willing to compromise but if you have half a brain, I think you can figure out what is going on here. It's just to bad you voted for him. Hmmm....?
No, silly. it;s called raise taxes AFTER cutting spending. We could tax everyone over the 200,000 ALL their money and only operate the nation for about 3 months. THAT is how out of control Obama's spending is.
I wanna ride this pony right over the cliff.