With three weeks to go to avoid the fiscal cliff, President Barack Obama will travel to a Detroit auto plan and attempt to sell his plan to raise taxes on the top two percent of Americans.
The “fiscal cliff” end game… If there’s going to be a deal, Obama, Boehner, and Congress need to start the heavy lifting ASAP… Kristol vs. the Wall Street Journal on caving on the tax rates… Motoring! Obama delivers remarks at 2:00 pm ET at a Detroit Diesel plant in Redford, MI… And in Michigan, the president will set foot in the state featuring the nation’s latest labor battle… The hits keep on coming for Susan Rice… The upcoming immigration push… Hillary and 2016… And meet Markwayne Mullen.
*** The end game: We’ve told you that the last couple of weeks in Washington’s fiscal debate have mostly been about P.R. and posturing. Like a student in college or a reporter working in the news business, the real work in Congress typically doesn’t happen until there’s a real deadline that’s rapidly approaching. Well, we’ve now entered that deadline phase in the negotiations between President Obama and House Speaker John Boehner. If the plan is to get something passed by Friday, Dec. 21 (right before the Christmas holiday), then the legislation has to be written by Dec. 18. And that means that Obama and Boehner must reach an agreement by Dec. 14-15, if there’s going to be a deal. So the time for posturing and P.R. is over. This week, we’ve reached the phase where both sides will begin rolling up their sleeves to do the heavy negotiating. Both Obama and Boehner know this, which is why they did meet behind closed doors yesterday. The question now is: Will there be a BIG deal that includes serious entitlement hits in addition to major tax reform? Or will it be JUST taxes and a punt until the debt ceiling? There’s not much of an “in between” at this point.

Chip Somodevilla / Getty Images
Speaker of the House John Boehner, R-Ohio, talks with reporters outside his office in the Capitol Dec. 7, 2012 in Washington, DC.
*** Kristol vs. the Wall Street Journal: In addition to yesterday’s news that the president and the speaker met, Sen. Bob Corker (R-TN) became the latest GOP lawmaker to suggest that Republicans acquiesce on raising tax rates on the wealthy to get entitlement cuts. And that’s a stance the Wall Street Journal’s editorial page today criticizes. “So it's a shame that Republicans are playing into Mr. Obama's hands, negotiating in public among themselves, prematurely giving up on the tax issue and undermining House Speaker John Boehner in the process. Mr. Obama isn't going to blink on the budget if he thinks Republicans are going to blink first, and so far the emerging GOP position seems to be to surrender on taxes first and hope Mr. Obama will have mercy on them later on entitlements.” But the Weekly Standard’s Bill Kristol hits back at the Journal. “Most Republicans will go along soon after January 1 with what will now be the Democrats' tax cutting agenda. If the House Republicans now follow the Wall Street Journal editors over the cliff, the only effect, I'm afraid, will be to turn a manageable tactical retreat in December into a panicked strategic rout in January.” There is good news for Boehner in all of this: The lack of consensus among conservatives gives Boehner more running room to cut the deal he thinks is best, rather than over-worrying about specific conservative constituencies. Remember, the House GOP leadership won’t say it publicly, but they’ve signaled privately that under the RIGHT circumstance, they’d go to the floor of the House with less than a majority of the majority.
Former Michigan Republican Governor John Engler, who is the president of the business roundtable, joins The Daily Rundown's Chuck Todd to talk about President Barack Obama's trip the Michigan, the fiscal cliff, and Michigan's 'right to work' law.
*** Motoring! Your White House fiscal-cliff photo-op of the day takes place in Michigan, where the president delivers remarks at a Daimler Detroit Diesel plant at 2:00 pm ET in Redford. Per the Detroit Free Press, Daimler, which owns Detroit Diesel, is announcing “a new investment to expand U.S. production and jobs... The White House said the investment is expected to be $100 million or more and, with it, Daimler Trucks North America will become the first heavy-duty vehicle equipment manufacturer on the continent to build a fully integrated powertrain from on production facility.” So today’s even will be a mixture of the fiscal cliff and this Daimler news.
*** Michigan’s labor battle: Yet when Obama visits Michigan, he’ll be setting foot in the state featuring the nation’s latest labor battle. “With Michigan lawmakers poised Tuesday to give final passage of right-to-work legislation, unions and their supporters plan to mass outside the Capitol that day as part of a last-ditch bid to derail the fast-moving campaign to limit labor's power,” the Detroit News says. “If lawmakers reconcile the bills and pass a final version Tuesday — as expected — Gov. Rick Snyder has said he will sign it, making Michigan the 24th right-to-work state and dealing a major blow to organized labor in one of its traditional strongholds.” Out of all the new Republican governors who were elected in 2010, Michigan’s Rick Snyder was always viewed as the least ideological of the bunch. So when Scott Walker in Wisconsin, John Kasich in Ohio, or Rick Scott in Florida were pursuing controversial changes and legislation and confronting the labor movement, Snyder -- who calls himself “one tough nerd” -- stayed away from the ideological wars and focused on the economy. In fact, he even appeared to support Obama’s auto bailout. But now the Michigan governor finds himself knee deep in the same kind of controversy we saw in Wisconsin and Ohio. By the way, while we do expect Snyder to greet the president at the airport, don’t expect to see Snyder with the president at the Chrysler event because it’s taking place at a UAW facility.
*** Hits keep coming for Rice: It’s no longer Benghazi, or even the Keystone XL Pipeline. Critics of Susan Rice are now pointing to the Obama administration’s failure to intervene in the atrocities in the Democratic Republic of Congo. The New York Times: “Specifically, these critics — who include officials of human rights organizations and United Nations diplomats — say the administration has not put enough pressure on Rwanda’s president, Paul Kagame, to end his support for the rebel movement whose recent capture of the strategic city of Goma in Congo set off a national crisis in a country that has already lost more than three million people in more than a decade of fighting. Rwanda’s support is seen as vital to the rebel group, known as M23.” And the Times reports that Rice has been viewed as shielding Kagame. And then there’s a New York Times op-ed from journalist Salem Solomon, who accuses Rice of showing “a surprising and unsettling sympathy for Africa’s despots.” This is the problem for Rice as long as President Obama doesn’t officially appoint her (or John Kerry) to fill the secretary of state position: She’s dangling like a piñata for critics to whack, without an official campaign to defend her. But with the fiscal cliff taking up more and more time and this secretary of state issue becoming such a headache for the administration, there’s a very real chance the president doesn’t announce any new cabinet members until AFTER the new year.
*** The upcoming immigration push: Over the weekend, the Los Angeles Times noted that the Obama White House is preparing for a big push on comprehensive immigration reform after the “fiscal cliff” negotiations end. “Senior White House advisors plan to launch a social media blitz in January, and expect to tap the same organizations and unions that helped get a record number of Latino voters to reelect the president. Cabinet secretaries are preparing to make the case for how changes in immigration laws could benefit businesses, education, healthcare and public safety. Congressional committees could hold hearings on immigration legislation as soon as late January or early February.” More: “Democratic strategists believe there is only a narrow window at the beginning of the year to get an initiative launched in Congress, before lawmakers begin to turn their attention to the next election cycle and are less likely to take a risky vote on a controversial bill.”
*** Hillary and 2016: On Sunday, the New York Times ran a “Hillary 2016” story, and we all should prepare for these kind of stories once a month until she decides to run (or not) for president. “Right now, aides and friends say, Hillary Rodham Clinton’s plan looks like this: exit the State Department shortly after Inauguration Day and then seclude herself to rest and reflect on what she wants to do for the next few years. Those who have invited her for 2013 engagements have been told not to even ask again until April or May.” The Times does make this important point: If she does want to keep the presidential door open, her options are limited. “The more serious she is about 2016, the less she can do — no frank, seen-it-all memoir; no clients, commissions or controversial positions that could prove problematic. She will be under heavy scrutiny even by Clinton standards, discovering what it means to be a supposedly private citizen in the age of Twitter. With the election four years away — a political eon — she will have to tend and protect her popularity, and she may find herself in a cushy kind of limbo, unable to make many decisions about her life until she makes the big one about another White House try.”
*** Meet Markwayne Mullin: NBC’s Carrie Dann has profiled 10 new members to watch in the next Congress. Today’s profile: Markwayne Mullen. When his father's illness forced Mullin to quit college and take over the family plumbing business, the 20-year-old and his wife turned a flailing enterprise into a small eastern Oklahoma empire. Mullin, now 35, won the House seat vacated by retiring Rep. Dan Boren, running under the banner "A rancher. A businessman. Not a politician!" The Tulsa native -- a social conservative who vehemently opposes "amnesty" proposals -- has promised to take a no-frills attitude to the halls of Congress. Casually dressed on election night, he joked with supporters that he defied his campaign staff's request that he wear a suit to deliver his victory speech. "They got me this far, and boots are going to take me all the way there and bring me all the way back" from Washington, he said.
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1...........2.............3...............Jump!!!!!!!!!!
how do our congressional leaders justify spending billions of our Tax dollars to countries like Iraq ( an oil rich company), Afghanistan ( I guess so they can grow more poppy seeds and kill our troops), and Pakistan ( they did not know they were harboring Bin Laden and allow the Taliban to shoot little girls), next Egypt and also allowing our government to bailout companies (remember Solyndra) with our tax dollars also knowing that these companies are going to declare bankruptcy. They have been sending these billions of dollars to these countries for years and they all know that no of these dollars go to the people in these counties but just go to those countries political leaders or whomever is in power for that day. These countries have been fighting since and before the time of Christ because they have that tribal mentality just like the gangs here in the USA. My Tribe\gang is better then yours. Again what benefits have we seen from sending our Billions of Tax dollars to these countries? NONE! If these Billions of dollars were spent HERE on things such as: Medicare and or Social Security then these programs would be solvent for many years to come, and they could also be spent on helping the people who were decimated by Hurricane Sandy and other internal spending. Have any of these countries or for that matter any country offered aide to the people decimated by hurricane Sandy. Charity begins at home!!
Why do our politicians have such good benefits considering how they perform at their jobs. I work in the private sector and if I performed at my job as they I would be laid off in a second.
Foreign aid is a small number compared to the rest of the federal budget. Entitlement programs, Social Security and interest on the debt account for 2/3 of all federal spending. Entitlement programs are where the cuts need to be made.
2012 Federal Budget - $3.8 trillion of spending
902B – Defense (24%) [Military, Veterans, Foreign Aid–44B]
846B – Health Care (22%) [Medicare and Medicaid]
820B – Pensions (22%) [Social Security]
452B – Welfare (14%) [Unemployment + other programs]
225B – Interest on Debt (6%) [will triple when interest rates rise]
200B – Other Spending (5%) [cut in half to $100 billion for 2013]
153B – Education (4%)
103B – Transportation (3%)
62B – Protection (2%) [FBI, Courts, Federal Prisons]
34B – General Government (1%) [White House, Congress, Gen. Services]
It makes me laugh when someone says "it is a small amount" or "it won't help much in reducing debt".
We all know that cuts needs to be made in many places, and spending reduced in many places...there is not one place that will cover everything.
Better to make a small cut here and trim a budget there, than to wipe something vital out completely.
Republicans always want to wipe out entitlements, because they are the party of the wealthy and don't need these entitlements. Until they do, then they change their song rather quickly.
USA has sent almost 60 Billion Dollars in Foreign this year alone. That 60 billion could rebuild the damage caused by Sandy along the east cost without asking for more money to do so.
Peter17, you old republican shill with your lopsided propaganda, where have you been hiding?
Tell us how outspending the next 17 countries combined on military spending seems appropriate to your extremist pub views. And if Gordon Gekko had won the presidency military spending would have greatly escalated over his puppet regime.
Why does boner always look like a little kid who was just told he can't have any ice cream?
because the guy driving the ice cream truck won't slow down
If you saw the movie Lincoln, the actor David Straithairn who played William Seward, bears an uncanny resemblance to Boehner. I got the same impression of the character in the movie as I do from Mr. Boehner.
Boehner's problem is that he's a puppet. He's never had any real control over the Republican party. Even when they were debating the debt ceiling last year Boehner thought he had it all worked out with the Democrats until Eric Cantor told him no.
I seem to recall that during the Clinton administration the taxes were higher and there were more jobs and, in fact, a surplus. Then the Bush Era taxes kicked in and the slow decline began. Add to that Iraq and Afghanistan wars that have yielded precious little, except the killing of Bin Laden, and the debt increased by leaps and bounds. As far as entitlement cuts, I believe that has to be done, but to ask people now 1-5 years away from retirement and those benefits is a slap in the face to all of us who have worked for 40+ years to get to this point. Increase the entitlement age to 67, but with the provision that this provision is to be effective for those at age 55 or younger as of January 2013 or July 2013, or whatever date. Maybe those at the beginning stages of their careers will learn to set aside money for their retirement years. It was a whole other ball game when I entered the work force, and I played by those rules all of my life. I now expect to receive my award at the end of the game.
The myth of the "Clinton Surplus" rides again. The last year the national debt did not increase, according to data on the U.S. Treasury website, was 1957 when Eisenhower was in the White House. That was the last time we had a REAL balanced budget. Using budget gimmicks and off-budget spending that is illegal in the private sector do not make for a balanced budget.
Regardless of the myth, the tax rate was higher and the wealthy seemed not to suffer as the Republicans would have us think will happen to them, and us, as a result of going back to a higher rate.
I'll be happy to pay clinton era taxes if you can guarantee clinton era spending
Ahhh, in a perfect world.
It's a much smaller myth than pubs being "fiscally conservative." A myth the public didn't buy.
What I find truly amazing is that neither Harry Reid nor Nancy Pelosi said boo about Obama proposing to take control over the debt ceiling.
Why didn't one of the MSM "journalists" ask them. I'd be real curious as to their answer.
Bring on the cliff.
I don't understand how congress can cede that authrity to the president.
I can hear Speaker Boner right now in the "negotiations" .... "Where's my little bottles... hicup, hicup... who took all my hicup...little bottles. Leave it to the Republicans to charge a drunk to head "their" negotiations... what a laugh they and their policies are. One of the reasons they got their butts whipped!
Maybe because Reagan raised the debt ceiling 18 times and W 7 times.
To all teabaggers. If we go over the cliff and this triggers another recession you will get slaughtered in the 2014 mid-term elections so watch out what you wish for. If you put up another fight over the debt ceiling and that causes the US to suffer another credit downgrade you will get slaughtered in the 2014 mid-term elections. Let Obama and the democrats figure out the tax code and the budget. Your have proven that the republican's are not to be trusted with our economy. Stand down and watch and learn.
Obamanomics has been a disaster for our economy and the middle class. Why would anyone in their right mind want an incompetent community organizer making economic decisions about our country - ABSURD!
We are extremely fortunate that some folks with some common sense about getting our country onto a financially sustainable course took control of the House of Reps back in 2010. Had that not happened, the federal government would already be bankrupt like Greece.
And Bush's Iraq war was good for the middle class? Oh I forgot revenge for Dad was worth it. What a charlatan.
Peter, by a disaster you mean a slow but steady climb out of the hole that Bush left us in?
Yes things are still tough, but we are not in the economic free fall that were were in at the end of 2008 and start of 2009. Things are improving and people are not happy with the pace, but don't lie about what direction that the economy is moving in.
This is saying nothing about what will happen if we go over the fiscal cliff at the end of the year. Which I blame the Republicans for by being intransigent over the debt ceiling debate a year ago. It may not be as bad as a lot of people are making it out to be. We are on the cusp of a new economic boon in the U.S. right now as more companies are considering moving manufacturing back to the U.S. as over seas labor costs are rising as well as uncertainty in foreign labor markets. Not to mention the cost of shipping to their main customer, the United States. Energy costs are also coming down in the U.S. due to increases in domestic energy over the last four years.
Yes, if the Congress doesn't get its act together and we go over the fiscal cliff it will hurt. But it has yet to be seen if that will be blunted by other factors that are looming on the horizon that should boost our economy.
Hey Peter17, tells us how much better things would be for the middle class if McCain had won and all of us would be buying World War III bonds now to fight in Iran, along with Iraq and Afghanistan. You're such a tool of the right, the perfect tool actually, you're completely oblivious of how well you're being used.
THE PROBLEM IS THE JOKE IS ON US!!!!!!!!
Tea-Publicans are trying to destroying entitlement programs WHY!! WHY!! WHY!!
Bush took $565,000,000,000 billion from Social Security!!!! THAT'S 1/2 TRILLION DOLLARS!!!
THEN TEA-PUBLICANS SAY SOCIAL SECURITY IS GOING BROKE HA!!HA!! THE JOKE IS ON US!!!
The 2004 deficit reached $415 billion, a record. Still, its real size is masked by the fact that Bush has shifted $150 billion from the Social Security trust fund in order to make the shortfall look smaller. It's like pretending you're richer when you move money from one pocket to another. Both sums have to be repaid, so the real amount borrowed is the $415 billion nominal deficit plus the $150 billion from Social Security or $565,000,000,000 billion.
All we have to due is raise the cap. Social Security is 100% self sustaining. Fully funded for the next 23 years. But does need the cap raised down the road. And don't believe all the Republican Malarky like a need to raise retirement to 67...
John Boner "Wheres all my hicup, hicup... little bottles. lol
Obama Quote of the Decade:
"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America 's debt weakens us domestically and internationally. Leadership means that, "the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."
~ Senator Barack H. Obama, March 2006~
If President Obama had inherited lets say what George Bush inherited there is no doubt that he would not have squandered it like his predecessor. With that said, he has done a remarkable job in slowly getting us out of "The Great Recession" and the grand mess that may have taken us into bankruptcy with the rights fight for the rich only policies...
Raising the debt ceiling until money grows on trees or we have established a "perfect world" has been and always will be a tool in the financial arsenal of this country to keep it operating no matter who is in office...
Why didn't pubs stop the debt ceiling from going up in the past? Better yet, would it have been an issue under McCain, or has it become another tool to beat up Obama with?
The republican party is the biggest reason Obama won the election and needs to take full responsibility. There were many people who voted for Obama because they had no choice but were forced to vote for him because the republicans are judt too far out there I mean past Pluto. Even with the disaster of the health care debate Obama still won and what does that tell you about the republican party.
I don't think the GOP is worried about the mid terms. If they were going to be thrown out of power, it would of happened last November. Even top Democrats believe we have to undertake serious entitlement reform (raise the retirement age, means tested medicare). So I really do think the GOP will go for raising rates on lets say $500K and above in exchange for some serious entitlement reform. While we are at at, we should make every state a right to work state. If Union workers think they are as competitive as non union workers, why would they object?
chris: One reason Repubs weren't thrown out of the House was all the redistricting and jerry mandering done by the Repubs in several states that pretty much guaranteed the seat for a Repub.
Even so Repubs lost seats in both Senate and House....and will lose more in 2014 if they don't start acting like adults and start thinking about all Americans instead of just their wealthy 2%.
Mitt was absolutely correct when he said he (and most Repub politicans) do not care about 47% of Americans.
Right on Dragon... only "dirty" politics keeps em in the game...
Is it just me or does anyone else just hear, "Blah, Blah, Blah, Blah......Lie, Lie, Lie, Lie?"
if you are speaking of politics in general, I totally agree
...i'm sure we'll all be impressed with whatever comes out of washington. sure! they've had 1.5 years to work on the deficit/debt problem but wait until the penultimate moment to work on it and pass legislation to resolve it. we'll be getting another of pelosi's obamacare bills: 'you have to pass it to read what's in it.' what a way to run a country! i think the monkeys at washington national zoo could do no worse!
I like that you are being optimistic about all this, but myself I expect another Super Committee resolution where they kick it down the road by putting even greater risk into a vague future resolution that no one has any idea how to get to.
Ole snake eyes will give in,then it's all about entitlements,,
Obama won,now let's get to work
The rich will be fine
Send in the U.S. Marines. Lock and bar the congressional doors! No Christmas for congress until the deal is done! This would be over before midnight on December 24th. Commander in chief can do that in a national emergency.
I'm with you. When there is a national crisis looming I say lock our so called leaders in the capital building, Obama included, until they come up with an answer.
Maybe if we did that Congress would actually get some real work done. I mean besides declaring pizza is a vegetable.
The GOP,are a bunch of cry babies,,
America's battle is not rich vs poor, it is a battle between politicians and we the people! It is our money that they are using to bribe us with!!
oh i believe what is going to happen is the GOP is going to get a big boner from obama next year, aren't guy's sick of being lied to? i am, get rid of obamacare and straghten out this country like your suppose to do, or let someone else in there, sure the hell none of can handle it, obama is like a little spoiled ass, my way or the highway, stick prez, if we did it all your way no one would be working. people, do you realize that without paying 6% on social security you are actually hurting your mothers and fathers. but i guess none of you give a @!$%# except for yourselves thats why you voted in the guy that never has a budget. idiots
And each side with one or the other,,wrong
Obama's "my way or the highway" contunues.
Over 1000 executive orders and counting, hundreds of times more than any previous president in history.
It continues right through the W Adminstration, he set the path Einstein.
Just like his buddy Morsi. Dictatorship in disguise.
That's the traitor GOPuke House's fault. They refuse to do their job even though they keep taking our tax money as though they are earning it (treasonous). Thank god our Presdent has acted using executive orders so the nation won't fall apart.
Actually, Obama's use of executive power has been pretty minor compared to previous presidents. People like Stew just complain because it is the executive equivalent of an end run around an intransigent congress that can't get anything done.
http://blogs.phillymag.com/the_philly_post/2012/11/06/video-pennsylvania-voting-machine-obama-vote-romney/
but not to be outdone
http://www.cbs42.com/content/localnews/story/Voting-machines-switch-Romney-votes-to-Obama/m9dR8WDjbUKX8OFu4meIFQ.cspx
Democrats want to raise taxes because they are spiteful.
Everyone knows 85B will not reduce the debt when the interest on the debt is 225B.
It makes no sense. They are just petty people that hate people that are smarter or more successful than they are.
When the fiscal cliff hits, they can point fingers all they want and blame republicans and wealthy people.
But in the end, they will get poorer and I'll hardly notice. In fact this may push me under the next tier and lower my gross and raise my net income.
Meanwhile, I won't be able to hire anyone, so unemployment goes up. Everyone will make less, so there will be less revenue to collect. Super rich people will just find more loopholes and still pay lower effective rates than upper middle class people.
Raising rates without closing loopholes is STUPID. Lowering rates and closing loopholes actually generates MORE REVENUE.
And still it is nothing but a drop in the bucket. You need to cut spending and pay down the debt.
The people that want to raise taxes and increase spending are the same people that buy more stuff than they can afford and just stick it on their credit card. They figure eventually it will be someone else's problem. As long as I get my iPhone and iPad and get to watch Honey Boo Boo, I don't care.
You just need some tough love. Like when you go to rehab, which I'm sure most of you have been.
Dragon
Why was it Bush's debt, but not Obama's? A President has the power of the veto, and signs bills. Thus, they own it.
Bush didn't veto a single republican bill, the puppet allowed the right's spend crazy habit to continue without any control.
Republicans don't pressent bills, just Bull#$%&... so no need to veto anything... Mitch McConnell just last week filibustered his own bill! A laughable first for the history of Congress... lol
What a clown show these Republicans put on... puts the Shriners to shame! lol
for all those cutting down the GOP, or for the GOP cutting the 'other' way, one question, and just a simple answer:
Hmmmm, looks like another lie to me!!
Just divide the country in half, Democrats in the north, Republicans in the south, and their money stays with their party. Democrats need the Republican money to pay for their waste, and would fall apart in dept. Republicans can then take over the remains and rebuild !
The red states take in more than they pay in taxes, so what sense does that make.
Austerity, that was a stupid comment.