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Subscribe to RSSHouse Republican leadership considers a new proposal from the White House to avoid the so-called fiscal cliff "a small step in the right direction" but aides say that "there are still substantive issues that are unresolved."
The lack of an outright rejection of the White House's most recent proposal is noteworthy, hinting that both sides may be willing to come to an agreement with just 13 days until the New Year.
The reaction comes after the White House proposed Monday what they call a $2.4 trillion dollar deficit reduction package, including $1.2 trillion in new revenues and $1.22 trillion in spending reductions.
Included in the revenue increases is the expiration of the Bush-era tax rates for incomes of $400,000 and more, marking the first time the White House has moved on their stance of raising rates on incomes of $250,000 and more. The $1.2 trillion in increased revenue is also down from the $1.4 trillion in new revenues the White House included in their last proposal.
Republican leaders are looking at the White House's latest fiscal cliff proposal, which includes a $2.4 trillion dollar deficit reduction package and tax hikes on incomes over $400,000, marking the first time the Obama administration has changed its stance on tax rates. NBC's Chuck Todd reports.
But Republicans feel the package is not balanced, and say that interest savings included in the White House's $1.2 trillion in spending reductions should not be included in the proposal.
"When you attempt to use all of those interest savings in lieu of programmatic structural reforms like the ones that we've been talking about you further enhance the unbalance between revenue and spending," a Senior GOP Aide said.
Because of that, the aides say that the spending reductions included in the White House proposal only equals $850 billion, compared to the $1.3 trillion they see in revenue increases, something they say does not achieve the balance they are looking for.
Talks continued Monday as the fiscal cliff quickly approaches. Reports suggest both sides are submitting to certain concessions. NBC's Brian Williams reports.
Aides said that House Speaker John Boehner (R-OH) has agreed to allow marginal tax rates on incomes of $1 million or more to move back to the Clinton-era level of 39.6%. He would also raise revenue through limits on itemized deductions and expenditures, which they say would raise a total of around $700 billion. Aides said they would have to work out how they would raise more revenue according to the still-to-be-decided target number.
But the Republican aides said details are still lacking in how spending would be cut, and how the tax code would be reformed to achieve the increase in revenues and cuts that is eventually agreed upon.
On both sides, it appears the White House and Republicans have agreed, in principal, to make both the cuts to entitlements, and the tax increases, occur in a two-step process.
The first step would take place in January of 2013, after which the second step would take place in January of 2014, but would be so unsavory that fundamental reforms of both the tax code and entitlement programs would be far more appealing.
This approach would effectively create another cliff at the end of 2013, where Congress would be forced to agree on comprehensive reforms to entitlement programs and the tax code, or face an alternative that neither side would prefer.
The Republican Leadership Aides say they are still talking to the White House, and that talks will continue in the days to come. But they were quick to say that despite the way the White House depicts their most recent proposal, it doesn't come close to the "balanced approach" they are seeking.
Either way, the aides said that the difference between the White House and Republicans are not unresolvable in the coming days.
"The issues that we're talking about are not technically difficult to resolve," one Republican Leadership Aide said, "There are not hundreds of moving parts, but they may be fundamental issues that are difficult to resolve."
Also unclear is how Republicans on Capitol Hill will react to Speaker Boehner's concession on tax rates. The House Republican conference will meet on Tuesday morning, where aides say leadership will discuss the details of the fiscal cliff negotiations.
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Does Boehner finally have Norquist cleaned out of the grooves of the soles of his shoes? Once you step in Norquist, he does have a way of stinking up the room by leaving a trail of doo-doo throughout the House.
Raising tax rates is the right thing to do. Obama made concessions as well. Now he is only going to raise taxes with income $400,000 and above.
Give the president and speaker the credit...for doing something in the best interest of the country.
But, the GOP in Congress can still be trouble, because according to the report...
Obviously GOP sense of balance is totally out of balance.
The most important thing in this fiscal cliff talk is 'to slow down.' It's important to cut deficit, but the economy is too complex. You don't want to cut too much too fast and push the economy back into recession. Take action..one a time, and then observe. Right now, get some agreement to stop this cliff...that's more important. How much to cut? Take it slow.
"This approach would effectively create another cliff at the end of 2013"
In other words, let's 'kick the can down the road' for another year.
The longer we wait to make the needed changes, the more difficult and expensive the problem becomes. Typical 'politics as usual', with our children's and grandchildren's futures at stake.
None of this addresses the REAL problem with the Deficit, which is Health Care costs, thanks to Obamacare. In reviewing Obama's (very optimistic) Budget projections in his 2013 Budget proposal, it shows that revenues from health care taxes (mainly Medicare taxes) will only amount to $2.8 Trillion over 10 years, but spending for Medicare and Medicaid will be $11.1 Trillion over 10 years. That's a Deficit in health care of $8.3 Trillion, which accounts for every penny of the Deficit over the next 10 years - and then some. In other words, without the Deficit from health care costs, we would have a SURPLUS over the next 10 years.
Unfortunately, the Democrats constantly cry "We can't cut spending for the poor" and call the Republicans heartless, so nothing gets done.
it's going to be really interesting to see how the House GOP majority will act. These political animals will all be up for re-election in less than 2 years.
I wonder if they will be brave enough to do the right thing and put the interests of the country before their own political career - obviously Norquist has always been an unforgiving master, so is NRA - and that's scary to those House Republicans who want to keep their job.
Imagine Norquist and other superpacs will air a TV campaign commercial during midterm 2014, revealing how 'this or that congressman raised your taxes.'
The increased taxes on the 'rich' will probably generate about $50 Billion per year, or about $500 Billion over 10 years.
So what do we do about the other projected $9.6 Trillion increase in the National Debt over the next 10 years? (Obama's projection from his 2013 Budget - Here's the link - See Table S-15);
http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/tables.pdf
Let the tax cuts expire as planned. These were temporary cuts that were supposed to drive the economy and all they did was drive the greed that drove our economy into the ground. And since the GOP held us hostage to the debt ceiling agreement, let the sequestration they agreed to happen also. Its well past time to deal with the wasteful defense spending via contracts that padded the pockets of politically connected contractors. Close those obsolete and unused bases and ditch that unwanted jet. Dump the tax breaks given to the rich and wealthy job creators who did not create jobs. Put the money stolen from SS back into the system with the added revenue.
And let the GOP eat cake.
Imagine just one item...F-22 which wasted more than $100 billion. The original plan was to deploy F-22s for use during the Afghan war, but some sticky technical glitches have never been solved.
As a former Senator Everett Dirksen once said, "A billion here, a billion there, and pretty soon you're talking real money".
I am sure tax increases proposed by the President won't solve our problems right away, but it's one step in the right direction. There will a sense of fairness among Americans. It will improve our fiscal situation a bit.
More important, such policy will boost business confidence not only among US businesses, but also global confidence..which is sorely lacking and will go a long way to help improve
JustSlapMe "Let the tax cuts expire as planned.........let the sequestration they agreed to happen also."
Agreed - It would largely solve our Deficit problem. The sooner we 'bite the bullet', the better off we will be in the long run.
Estimated tax increases = $4 Trillion.
Estimated spending cuts = $1.2 Trillion.
Total cut in Deficit = $5.2 Trillion, which is almost 80% of the Deficit over 10 years projected by Obama. PROBLEM SOLVED.
Pigotry "Imagine just one item...F-22 which wasted more than $100 billion."
I'm not sure your figure is correct, but I do agree it's time for the next generation fighter - Unmanned, with far greater manueverability and far less cost and risk.
TO: PeterPaul23 who wrote:
That's why you're guy couldn't get into the White House, too much wrongheaded thinking.
If you think that money won't pay the bills, what are going to use instead because China doesn't accept "spending cuts" in place of cash.
If billions of dollars in tax revenue from oil companies isn't enough, then why do you think Food Stamps from poor children and elderly American's retirement checks will help?
And this is better news. The $200/250 Obama proposed doesn't really work well for the coasts, where those amounts are chump change. Of course, I'm sure that Boehner is happy, none of the increases work against he and those in Congress.
Obama made concessions as well. Now he is only going to raise taxes with income $400,000 and above. The info is in this news report.
It's always nice to read about how our esteemed leaders deal and haggle with human lives to account for
problems their equally esteemed predecessors created, they perpetuate, and we are forced to endure. Makes
my red white and blue heart swell with pride.
Haven't the Republican members of Congress convincingly demonstrated that they will find fault with whatever proposal the President offers?
They have yet to realize that Congress is responsible for proposing spending and tax laws, not signing pledges with lobbyists of dubious honor and purpose. They are embarrassing themselves and my country on the world stage, while playing their constituencies like a dime store kazoo.
SDN as long as their pockets get lined they really do not give a damn what we think..... We already showed them what we wanted by having the President stay around for 4 more years...... Dear Mr. President please Sequester Congress, do not allow any of the House or Senate Members to go home until this issue is resolved.....
I hope they cannot get to a compromise and we go back to the old taxes and the big programmed spending cuts in the government that will happen automatically on 1 Jan 2013. they cannot come to an agreement so then let the prior agreement and result kick in Taxes back to where they were and deep spending cuts like in the Defense dept and other government agencies. When that happens they the will be forced into closing out loop holes in the tax codes for the extremely rich, modify the corporate tax code, cut some of their own benefits.
And come 2014 hopefully the door out of the Capital (The House of Reps) for all of them
THEY created this whole mess and can't seem to fix it. So if we go down we ALL go down together.
That's right Republicans get your mass program cuts with Social Security and Medicare Republicans are uncaring SOB's why don't you have Grandma and Grandpa eat dog food. That and your anti-gun control well help weed out the population!Kids and Old people just as long as it is;nt a fetus! I feel the GOP instead of starting one of there great wars in other lands have decided to start a war in America that will solve our problems?
Let the "Fiscal Cliff" occur. We will find after the smoke settles that, once again, we, the People have been misled by the hype to scare and frighted into too quick actions. REMEMBER that Congress was steam rollered into NOT...NOT reading either the Stimulus Bill or Obaba care bill before passing each and more Bills of spending.
The scare tactic is why THIS Administration was ALLOWED...ALLOWED by the Congress to spend MORE than all the Presidents combined in just 4 years.
Easy enough to blame others for all this, when WE the Voters put these people IN The Hen House to destroy our Natiion.
WE, by Voting or by NOT Voting have done this damage to our Nation. Yeah, Folks the BLAME GAME begins when you look in a mirror.
The reaction by repubs is ...Goody goody, he gave in to our refusal to negotiate. The republicans hold fast..they don't care about the deficit....only keeping money in the hands of the rich. They don't agree to changing the balance that the rich have had with their welfare at the tax break trough..... at the expense of the middle class and poor with their republican plan of trickle on economics.
The next election will be devastating to repubs for their refusal to be American.....and their refusal to pay their fair share of taxes.
Ok Obama kool-aid drinker , how do "repubs" benefit ? If we go over so called cliff Obama gets what he wants . more taxes. I don't know why i waste my time to comment on you liberal kool-aid drinkers post but i guess i just can't get over how ignorant you are.
i take it you are rich?
Mike...if he is not rich...he is a Fox news watcher....even worse......he votes against his own self interests...Michi...you have no clue about the trickle on economics........which the impartial government put out a report on how the trickle only benefits the rich...and not the middle class...of course...repubs just voted to hide the report.... Obstruction in truth and facts day after day...just to make the rich...richer....and the middle class poorer.
Go off the "fiscal cliff". If it got rid of John Bonehead R-OH, McConnell R-KY, and Graham R-Sc, by angry voters come 2014... the few thousand more a year in taxes would be worth it.
my sentiments exactly
The so-called fiscal "cliff" already has the balanced approach:
50-50 automatic "sequestration" for all spending other than entitlements: 50% for the military, and 50% for non-military "discretionary" spending.
Expiration of ALL the Bush tax cuts, at both the high end and the low end.
And expiration of extended unemployment benefits.
And expiration of the supposedly "temporary" 2% payroll tax cut for social security.
All that's all already part of the automatic fiscal cliff.
Pain for everyone. Everyone needs to eat their vegetables. Shared sacrifice.
So, let's go over the fiscal cliff.
It's the best deal all around.
IF there are going to be any further changes, THEN here are the additional -- balanced -- steps: Democrats give the GOP a rise in Medicare eligibility, up to age 67, AND the GOP either gives up the Congressional debt limit veto or at least extends the debt limit four more years (to Jan. 2017).
If they go over the cliff, then they better make sure the floor is covered with matresses. Or there will be a lot of flat broke people
Mr. President: Don't back down on tax hikes! $200,000 AGI, bottom number, front page of form 1040!
why don't we hear from the big shots(in their own minds)ryan and cantor and that other snake mitchie boy?they are not saying anything cause they know the days in la-la land are numbered,over the cliff it does not mean anything its a smokescreen so all the pols in washington can conspire to line their pockets even more,the whole thing is bullsh%t and i mean all of them!!!!!!!!!!!!!!
Sad display of leadership from both parties. Can't fix the problem without taking from elderly, unemployed, or middle class. They "looted" social security, labeled it "entitlement" and continued to spend. Now they treaten to cut unemployment extensions, raise age for medicare and cut social security cost of living adjustments. People are being forced to retire and take ssi because they can't create jobs. To bad we can't "exempt" ourselves from their rules the way they do!
then the sob was the tie-breaker to tax them they are all in it together,lets get us in a tax choke-hold.P.O.S.
1.2 trillion over ten yrs is chump change.The way the gov spends money now the saving is about one month of spending.They throw around these number making it sound like alot but spread out, it is not all that much.Stop all the bs waste and there would be plenty of money for them to spend.Do away with the two party system and work for what is best for the counrty and not the greedy line of thinking"what is best for me and my rich friends"A half billion to run for Pres.Of course to donars are not looking for favors..
Also is unclear from Boner about the cut to social security, and COLA increases. This year COLA increase in 1.7%, Boner believes that it is overly generous and proposes a 0.3% yearly should be enough. Boner wants to change the way SS increase through COLA are done. Food and oil are not in consideration when COLA is figured.
How about first CUTTING FOREIGN AID before our old folks take a hit. Drop your Reprensative an email. I did and their answer was to skip the part about FOREIGN AID. Yeah, they all wrote me back expect Harry Reid and never mentions the main subject of my email to them...FOREIGN AID.
i read on another site that obama is going to concede and give up cost of living for ss people,i told my wife it was only a matter of time before obams threw us under the bus,screw boner let those clowns take a pay cut,no pension till they reach 65,no more free health care,make them pay like we do,lets see how these pos like living like the rest of us,wake the hell up people,the time has come to speak up,they are screwing us,the whole bunch.
once again. the little man will get screwed. if the top 2% of the country has increased their wealth, while the other 98% has decreased, who should pay the higher tax? it is becoming the country opposite of what our forefathers fought for.
"House GOP leaders: Fiscal cliff offer a 'step in the right direction'"
A step in the right direcection would be hearing what spending cuts government is going to make.
It baffles me that they call the President "liberal". He's not worthy of the title. He's not willing to put up much of a fight for the middle class, and even less for the poor. He does'nt have the courage to call their bluff when the only card they have left is suicide. I say give no quarter to these over rated bullies. Hillary would'nt.
Agreed, Obama is more of a communist than a liberal.
He's neither a communist nor a far-left liberal. He's closer to being like Reagan than any of you bungholes care to admit.
Reagan started the 'free phones' program and GWB enhanced it to include cell phones. And it's all paid for by a tax - look at your phone bill. Obama has done NOTHING to earn the wrath of idiots who insist it's all his idea to give away free cell phones.
check your facts please - and stop watching Faux News. The stupidest people on earth watch Faux News.
i do not make a quarter of a million dollars a year... not even close to it... neither my family is starving nor buried in debt...
so, what's wrong with the rethuglicans opposing the tax hike for those who are well off??? ...and, i know for sure that i am better off with most of my conservative neighbors...
traditional politician, TRAPOS in short... also means rag >>> the ones i use to wipe my @#$% off.
i don't believe for one minute he is a liberal its a very close knit gang and we are the pawns in the game they play.
I do hope the Tea baggers will make it impossible to reach a "deal" and that we go over the cliff. I assume the pres will cave on the income limit and the CPI if the republans give him a pass on the debt limit. Tea baggers please stand firm.
They are all out to screw us! I see it now. The Pres. caved on the $250.000, whats next? The Pres. also gave up, or seems to have given up the cola on s.s.i.? What? A 1.7% increase??? That is a whole $12 extra dollars a month, wow! With the cost of everything else going up 500%, what does that do, exactly? NOTHING!!! Thanks alot, for absolutely nothing! My Government has turned into a pack of theives. Neither side is worth their weight in @!$%#!
Term limits? Yep, we deffinately need term limits! Two years max., for everyone! And if they accept a lobbyists bribe, they will be terminated immediately! That would be the end of this bloated gov.!