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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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At this point, it seems that both sides are being unreasonable. Obama's "brilliant" plan included $200 billion in SPENDING, along with the provision that Congress no longer have control over voting to raise the debt ceiling; Obama believed that should be his decision alone. Now, the Repubs offer a plan that seems somewhat reasonable on the surface, but it's lacking in detailed specifics. Of course, the rabid idealogues on this message board will attack me for criticizing their party, whichever one it is.
GET A CLUE, PEOPLE: Both sides suck and don't give a tinker's damn about you or me! They will not accomplish anything unless We, the People, get off our lazy, irresponsible,. reality-t.v.-watching, junk-food-munching a$$es and admit that we abdicated our responsibility as citizens by letting those corrupt ar$eclowns in D.C. run this country in the ground! CONTACT YOUR STATE REPRESENTATIVE AND SENATOR AND DEMAND RESULTS -- OR RISK GETTING THOWN OUT OF OFFICE IN THE UPCOMING ELECTIONS.
Uhm, sorry it's 1.2 TRILLION in new spending with cuts only a "maybe" someday in the future. Obama has said that before and it translates to "NO cuts".
At this point, it seems that both sides are being unreasonable
GET A CLUE, PEOPLE: Both sides suck and don't give a tinker's damn about you or me!
Well put. They'll say and do anything to get elected because it's all about votes. How many Politicians make these promisses they can't keep, and the sheep fall for it every time?
Exactly, Carol - both parties are nothing but disgusting elitist pigs! The plans that have been put forth from both sides sound somewhat reasonable ON THE SURFACE. Then, once you start to dig into them, you see that it's all hot air. This is no longer a matter of 2 political parties arguing over a course of action.
I now see this as a government that is insulting the people who elected them. The have nothing but contempt for American citizens!
They throw crap out there just for show, only to divide the people and therefore insure their hold on power. Hard to throw them out when the people are fighting each other, right??
People take notes, the same politicians we Americans voted for to represent Americas best interests will be coming up for re-election so remember and strike back with your vote if you disapprove of the fiscal cliff we may all falling down if ego's and greed prevail.
I hate liberals. I hate everything about them. I hate their philosophies on politics and I believe their political philosophies show a lot about their personal character....which is why I hate them as people too. Not to say I like conservatives any better but conservatives are most definately the lesser of the 2 evils. I never understoodd why it is greedy for the working class to want to keep their money they have earned but it is not greedy for people to want to get handouts for what they have not earned. Its disgusting. I am absolutely disgusted with every single liberal and once the 47% turns to 51% it will be just a matter of time before this country no longer maintains itself as a global power. I blame every single one of the liberals. YOU are the problem. You can pat yourselves on the back for winning the election. It comes to no surprise. Of course the mainstream populous will vote blue if they are promised endless handouts. Everyone loves Santa because he brings gifts, but it is the working class that really put those gifts under the tree.
Corky Corky you are Corky and a sad person with hate in your heart. You are going to Hell if you believe in the Bible.
No sir it Barrrack-a -clause that did it just ask him !
Joesnopy,
I do believe in the bible and I know I am not going to hell because I believe Obama will write me an executive order to get into heaven. Apparently Obama has to have that authority the way he came out and tries to obtain authority to raise the debt ceiling on his own. The government has way too much power. Its horrible. Government should not be able to dictate the quality of life a person has. What ever happend to earning something on your own?
You know Corky Obama knows the debt ceiling route will not fly. He was willing to do some deep cuts last year but the GOP walked away from it because they did not want to raise taxes on the rich. Yes the GOV spend too much money but please do not be fooled. The rich is just as much the blame for all the spending because of the hugh contracts they get from the GOV your tax dollars. Look at what happen under Bush. Why do you thank we are in trouble? All those war contracts.
Do I think the GOV spend too much money? Yes but please do not be fooled by the rich. They have their hands out collecting your tax dollars. I see it. Have you ever ran into a Senator visiting a rich CORP owner. Well I have and let me tell you people like you are fools. I believe in hard work but to put another hard working American under the bus when I know the rich takes more of the tax dollars under the name of contracts. This is whay a lot of people like Ron Paul.
Tax us all at 100% and the government will still spend more than it takes in. Pay for those awful wars? That's not even close to what is causing our debt, it's the UNFUNDED entitlements that you liberals are refusing to touch. Until we take care of those our DEBT will rise dramatically. Tax the rich? what a fricken joke. It's a feel good emotional tactic that will DO NOTHING FOR THE DEBT. But liberals are all about feel good and NOT FACTS.
I am so freaking sick of John Boehner and his disrespectful smartass comments. How can you take this guy seriously when he acts like a three year old? I'd like 10 seconds with him so that I could wipe that smarmy look off his face. I'm an easy going person who gets along with everyone, but this guy makes me crazy! Come on GOP -- this is our number one representative? Where's the outrage?
Like what. The GOP are the only adults up there.
The GOP came out the day after the elections and said they would accept revenue increases to get the discussions started positively. Now, they have framed a proposal after the Bowles-Simpson Bipatisan Commission.
What to you want?
Really interesting how Boehner can look us all dead in the eye and call today's Repbulican proposal legitimate that deserves consideration, while anything the White House proposes is met with indignation from he and his sidekick Mitch McConnel. What a pair of schumcks.
Guns - The framework for the GOP proposal is the Bowles-Simpson Commission report that Obama commissioned. Seems that would have some credibility, huh? What's the problem for Obama? Is it too bipartisan?
Impeach this useless piece of $hit! He took an oath when he went into office and all the SOB has done is put out BULL$HIT for the corrupt Republican corporate MONARCHY! Never a solution for the 99% American People, just more BULL$HIT! IMPEACH HIM! HE'S LIBLED HIS OATH TO US!!!
Its going to be real bad when Obama cuts all the free stuff off and he will he has your votes now and has spent all the money they will let him have...he needs the free stuff money back now..lololo...Some are going to find out what a job really is Im afraid.lol
He won;t that is why he wants 1.2 TRILLION in new spending of non-existent slave moneys. he is selling our children into salvery of our unpayable debt that they will never see the benefit of all because silly spoiled dems refuse to grow up and plan for th future.
Thats exactly why I voted Republican Carol..I know he should never been voted back in and the freeloaders should have to.
Does that mean he's {Obuma} Is going from barrack-a-clause to king grinch Obuma ?
i pay more than all my employees put together even at a smaller rate so why should i have to pay more to the fed
Not one of the 47% of workers who pay no taxes. Shouldn't everyone pay something in.
I have an idea, Lets figure out how much money the country took in last year then use that money to make a budget, we either have the money or we don't to spend on defence, entitlements or infrastruture, no borrowing no credit, it's really that simple. I do it every year.
Your dealing with the Government they could screw up a wooden watch !
Hey lets go for it GOP. Now let us know what you want to cut now. This is the problem they want to cut programs but they do not want to say what when and how. Name it now. I dare them to name it. They are scare.
They have over and over. Obama refuses to do any cuts. His "maybe" means "no".
No, Obama part is to tax the rich and the GOP want to cut cut cut so they need to say what they want to cut. Do you know the GOP are trying to increase the middle-class taxes? You better read between the lines. Why do you think they do not want to say what loop hole they will end. Please go back and see what happen when Reagan did the same thing the GOP what to do by ending loop holes. I do not get it people. The middle class taxes went up and the very rich taxes came down a lot. It is just pure facts and the America people are so lost on facts it is scary. I remember a lot of young GOP was fooled and mad after the taxes when up when the loop holes was taken away during the Reagan era. The tax rate for the rich was very high before Reagan. It was 70% but we had a ton of loop hole and he got rid of the loop holes but they paid a lower percentage even after getting rid of the loop holes. The middle class had to pay higher taxes.
Carol they are not naming the cuts. Read the article. You are clueless.
Joesnopy - Please document your claim. You are shameless.
I do not need to document it. I was there.
I didn't think you could. You are full of it.
The Top 10% have paid around 70% of Federal Income Tax for the past decade. That means the other 90% paid 30%. What do you think is fair?
Here we go again. Don't expect any meaningful resolution until the last week. And even then they will kick the can down the road for another six month reprieve.
Here is the Republican strategy, boiled down to a single sentence (it actually defines the Republican party for the past 4+ years now, or at least the day AFTER they stopped rubber-stamping every bit of idiocracy put forth by the Bush adiministration):
GOP leaders rejected the plan out-of-hand
for them to follow up their crass, arrogant dismissal of the majority-supported Obama proposal by simply re-titling Paul Ryan's non-starter of a "plan" that would gut the middle class and leave the wealthiest untouched raises "Chutzpah" to new levels, even for these freakishly deluded individuals.
Note to Republicans: YOU LOST!! The majority wants tax increases on the wealthiest Americans, who have outpaced the rest of the world in gross, disgusting accumulation of money over the past two decades. I know you want to live in a fantasy world where your ideas about the unbalanced nature of wealth distribution in this country mean something, BUT THEY DON'T BECAUSE YOU LOST!!!
When this country drives over the fiscal cliff at full speed it will be the Republican party at the wheel. And we will remember.
Did you read it? a kindergartener would know that Obama's plan is weirdly pathetic and unusable. MORE spending no cuts is a good plan??? What planet are you from? ifwe go voer the cliff it is because obam refuses to do what it really takes-Stop Spending money we don't have!
No the leader is suppose to be the President and what about the Democratic Senate. So actually it is 2 to 1 in the Democrat's favor. And they can't come to terms? Says something about the President and what kind of leader he is or in this case isn't.
At the wheel???? But Obama is in the WH and the Democrats are in the Senate.
The Democrats are hedging their bets just as much as the GOP.
The Democrats have actually more to lose on this front.
Tax breaks to the wealthiest do not create jobs. They just better the bottom line for the well to do. What creates demand for more job is better products and or services. Creating more demand for the products and/or services will create more jobs and create more tax revenue.Show me, in history, where it's proven that tax breaks create jobs.
Face it, companies out there are going to want to do more with less and better their bottom line. It's what people and companies in a free market do. I would do the same. If I am hiring more people it's because I am doing something right and expanding or increasing my production to meet demand. Not because I get a tax break.
People with money want to find a place to put the money to work. Investors look for projects that meet their risk/reward criteria. The higher the return, the more likely a project will go forward and new jobs will be created. Higher tax rates mean lower return and fewer projects going forward and fewer new jobs.
You see why tax rates are worse for job creation than reducing deductions and closing loopholes. Understanding economics matters.
Actually most educated citizens can see why the fiscal cliff is a concern to the 51% that voted the current leadership. Fortuanately the 49% that do not like the leadership have sufficient funds to whether a fiscal cliff since we do not rely on the government for our income.
I like the idea of a fiscal reboot to bring those of you that want your free entitlements to the place you belong, on your buts with a cup begging us to help you. A reboot in our fiscal system is what we need.
Then when it is all done maybe you can find a way to be a contributar instead of a freeloading taker. Liberals seem to agree on another $50Billion stimulas for the unemployed; if you can not get yourself employed after 2 years I would hope you have the guts to check your leaching carcuses out and maybe your insurance can care for your families.
Besides, I don't mind paying an additional million in taxes, I will simply let 34 employees go to pay taxes then I will reach in to the free stimulas Obama money and create new jobs for one third what I was paying. That is how his plan works, keep the voting democrats dependent on the government and they will keep their party in power on false dreams of equity or more free income; they will never achieve either so long as there are educated voters tired of the socialist.
Ricardoh#'s, Don't you know that its not your money! Its the government's (Obama) money to do with as they see fit and you can have what they don't need.
And, these clowns only work (show up) 121 days a year. You want to know what is wrong with this country!!! Build a scaffold and start up the band!!! These scumbags are disgusting at best. STOP THE CAREER POLITICIANS --TERM LIMITS and NO RETIREMENT, cut off their benefits. If I behave like that at work I would be fired and escorted by security out the door, and so would most of the rest of the 47%.
Who do they think they are? Union teachers?
I have repeatedly asked for support of a congressional term limit petition within many of these posts, but most seem to be all hat and No cattle, in other words all talk and No action. If you want action then go to:
you will need ot add the h t t p s: // in the front since this iste appears to ban any links.
petitions.whitehouse.gov/petition/set-term-limits-congress/VTH6Fxhy
50 years ago - and before - Congress was in session all week long. Members of Congress lived in the District (D.C.) 7 days a week. Tip O'Neill (Democrat) and Everett Dirksen (Republican) and members of their respective parties would have dinner on weekends at the Old Ebbitt Grill or Zeibert's and talk about how they could work together -- solving the problems of this great nation. And they reached across to the other side - and worked together. That stopped about 25 years ago when Congress decided it should only be in session from Tuesday until Thursday. And they would go home for the weekends to campaign . . . . Do you think our politicians would dine with those on the "other side"? Don't bet on it. . . . As citizens, we should demand - demand - that our legislators stay in Washington and work together and deal with the business of the country. No Christmas recess for you Pelosi, Schumer, Levin or Boehner if you don't work together and solve the nation's problems. Might be nice to pass law requiring those of different parties to have dinner 3 days a week with someone from the "other side" -- and always someone different. Kind of like forced dating. . . .
reading between the lines, their plan basically says "Screw the poor and reward the rich"
How so? Your comments are inflammatory and irresponsible.
Be daring...Look at imposing these measure AND a tax increase to the 2% so everyone loses in this deal and as a nation we all share in the pain of getting the deficit somewhat under control..I dare the leadership of both parties to put their petty differences aside and actually accomplish something for this nation rather than to pander to their own political affiliation
That is what the repubs are willing to do!!!!!! Obama won't cut any real spending though.
I agree Bill.
Unfortunately the right thing may be doing nothing. Sequestration will hurt, but that storm will level somewhere by 2014.
More pain now will lead to sustainability, rather than waiting on some compromised cockamamie plan than will only be self serving to those in power.
Will Congress do the right thing or the politically expedient one? My guess is the good ole' boys club of Congress will figure out a way to so what is politically convenient.
the Republican solution to the fiscal cliff: downgrade the USA middle class to slave labor like our corporations are used to in Asia. Upgrade corporations to absolute and complete control of the government. Slander, destroy, or kill anyone or country that tells the truth or gets in the way. please just let the GOP fall off the fiscal cliff.
What???? It is the DEBT that is putting us into that catagory. We and our children will be slaves to unpayable DEBT rung up now by Obama and the dems who wouldnt accept any bipartidsan budgets to stop the failure coming up.
You are right, Carol. It is IMMORAL what we are doing.
King Obama says this, says that. Please bow now.
the top 2 % income earners income has gone up over 300% and they cant handle a tax increase according to boehner ? Then there is the supreme courts rulling that corporations are people well then they should pay tax's like people do . And not get subsidies . The election was about paying their fair share .
Tax the rich more. But also reduce spending and quit creating more government programs. Obama wants to tax the rich more and create more government programs which does nothing to the deficit. He also wants free reign to raise the debt ceiling on his own and Medicare, Medicaid, and Social Security are going broke and he doesn't even what to tackle that. What he is proposing makes for good PR but doesn't solve the problem we are spending more than we take in and no amount of raising taxes will solve the problem if cuts aren't made.
No they are willing, the repubs are now willing but obam wont do what it really will take to help our impending destruction-the cutting of spending drastically. Do you have any idea what the debt is??? You could take everyones money for the next ten years and not touch the debt rung up by Obama in just the last 4 years and that doesnt even count the debt already there when he took office. What i am seeing is people unaware of how catastrophic our debt and obama's spending is. It is FATAL.
The election was about two different tax plans. The President won, and as a result has proposed the tax plan on which he campaigned.
Boehner and McConnell are recycling the Romney/Ryan plan for some reason - eliminating unspecified deductions and leaving rates the same. People already said they don't want that, but let's propose it anyway.
The only way to save the economy now is to push Boehner and McConnell over a cliff.
Agree. Obama is just playing politics. He doesn't care about helping the country out of this mess.
Most GOP House members won re-election with a higher percent of the vote than Obama did. Get a dose of reality, Wayne.
Because we have Obama to compare him too. and my republican representative won with 80% Obama only got 52% You voted for gridlock when you voted for Obama. You got what you voted for, so stop crying.
Why can't Mr. Eye Candy get his ass to Washington & sit down & hammer this crap out? Get off of Youtube & Twitter videos & go to where the work is & get him some. To hell with sending out his little Tax Cheat messengers, sit down at the table face to face with Congress & get something done. He wanted the job & he was re-elected to do a job, get it done. With his vast organizing skills, he shouldn't have a problem organizing some type of meeting to get it done. Play time is over Jr. , your supposed to be the leader, LEAD.
Funny how each side blames the other well guess what folks it's Both sides they {Congress&White-house } Don't care one bit about "we the people" Why you ask? Because we all pay our taxes and be good little slaves and tow the line ! They have everyone so scared about everything it makes me sick I say let's all band together and not pay taxes for a couple of years I'd like to see them put all of America in jail guess what it ain't gonna happen but they have everybody so scared and wanting free stuff from the government we are all under control ! What did we do when the gas prices went up did we all march ? Protest? not really we complained while we put gas in the tank and screamed bloody Mary as we handed over the money right? What idf we all said fix this mess or you are not getting anymore money from us do you think they would listen ? They work for us but we treat them like and we do work for them so instead of waiting for the other guy to fix it let's all get on their butts and tell them they better get to work or else ! If I did what they do at my job I'd be looking for work ! So remember THEY work for US!!
They need to approach this deal in reverse.
1. Figure out how much you need to:
- avert the sequestration
- pay for the middle class tax cuts
- fix the AMT
- add to that any some deficit reduction target
2. Agree on a tax-to-cuts ratio
3. Using 1 & 2 sit down and negotiate what gets cut and where to raise taxes from