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Updated 10:48 a.m. - President Barack Obama would veto House Republicans' "Plan B" legislation should it make its way to the White House, a top administration spokesman said Wednesday.
President Barack Obama and House Speaker John Boehner may be the closest they've ever been to a fiscal cliff deal. The Daily Rundown's Chuck Todd reports.
White House communications director Dan Pfeiffer said in a statement that the GOP backup proposal -- which would preserve existing tax rates on income less than $1 million past the end of this year -- "does not meet the test of balance, and the president would veto the legislation in the unlikely event of its passage."
House Speaker John Boehner, R-Ohio, unveiled the "Plan B" proposal on Tuesday amid stalled talks with Obama toward resolving the combination of automatic tax hikes and spending cuts set to take place on Jan. 1 -- the so-called fiscal cliff.
The proposal would allow tax rates rise on income over $1 million, matching a previous Democratic proposal earlier this year. The administration, however, has set a lower threshold ($400,000 per year) at which it believes taxes should be allowed to rise. Moreover, the administration has argued for a more comprehensive agreement that includes spending cuts and entitlement reforms, but also new spending projects and an extension of unemployment insurance.
Kevin Lamarque / Reuters
U.S. President Barack Obama walks back to the Oval Office of the White House in Washington December 18, 2012.
"The congressional Republican 'Plan B' legislation continues large tax cuts for the very wealthiest individuals - on average, millionaires would see a tax break of $50,000 - while eliminating tax cuts that 25 million students and families struggling to make ends meet depend on and ending critical incentives for our nation’s businesses," Pfeiffer said.
Republicans, as of now, plan to move forward with a set of twin votes on Thursday, one to maintain existing tax rates for those earning less than $250,000 per year (Obama's existing proposal) and the GOP "Plan B" alternative. Boehner. who is continuing to negotiate a broader deal with Obama, will likely have to pass his backup plan only with Republican support -- and even then, conservatives who are leery of raising any taxes at all may defect.
"The president urges the Republican leadership to work with us to resolve remaining differences and find a reasonable solution to this situation today instead of engaging in political exercises that increase the possibility that taxes go up on every American," Pfeiffer wrote.
"The White House’s opposition to a back-up plan to ensure taxes don’t rise on American families is growing more bizarre and irrational by the day," said Boehner spokesman Brendan Buck in response. "Republicans have always said a broader, ‘balanced’ plan is the ideal solution, and we have put one forward. In the absence of a ‘balanced’ solution from the President, however, we must act to stop taxes from rising across the board in 12 days. If Democrats disapprove of this bill, then there is a simple solution: amend it in the Senate and send it back to the House."
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This is just a ploy by republicans. it does not accomplish anything and they will see how the country responds to this before they wiggle again.
Please Mr President, Do not back down, let the GOP drive the country off the so-called cliff. Why should SS recipients take a cut in COLA at all while CEO's dine out at $200-$300 dinners!
Yeah Mr. President! Don't back down! Who cares if we are spending $1 trillion each year more than we bring in? So what if the Debt (which is over $16 trillion right now) will continue to grow at ever increasing rates? So what if, when interest rates return to normal levels, that our payment on JUST THE INTEREST on the debt will become a huge portion of our annual budget?
We don't need the truth! We want to be pandered to, why else would we want to continue to have the 2% pay 30% of OUR OWN Social Security contributions (the "Payroll Tax Cut")? Just keep patting us on our little heads, pick a group we can vilify (remember when it was just the 1% -- but obviously thats not enough people to hate, so we had to go to 2%), and do whatever is in your power to distract us from the truth -- which is you are pushing us deeper and deeper in debt -- and at some point there will be rioting in the streets just like Greece when real austerity meaures kick in.
But again, don't back down Mr. President -- Your Time's Person of the Year!
lets just blame this on bush.... again...geez...
SPENDING is the PROBLEM!!!!!! taxing the rich pays for govt for what, 8 days?? that is just not the solution...
stop with the spending programs!!!! obama wants to SPEND SPEND SPEND!! if they cut ALL fed budgets by 20%.. THAT would help.. and if they have to lay off, then start at the TOP!!!!! they will fix it fast enough!!
its amazing this admin seeks to punish the successful, and reward the lazy( i know not all are lazy, but many are)
We are also paying for two useless wars and a Medicare drug benefit that was put on the credit card. If spending is the problem why will republicans not agree to an aggressive sex education and birth control program that would help lower dependence?
Yes ending the cake walk that the wealthy have had tax wise for years is punishing them? WRONG
The Republican Party is exactly what we thought they were. Puppets to big corporate greed. They started unneccesary wars so that they and thier cronies could bilk the nations tills and now they would rather cut alot of social programs to foot the bill for their war profiteering and money grabs?
Also the huge spending explosion happened under George Bush and its a fact that the growth of spending is down under President Obama so how can they keep crying about the over spending when they could care less about spending when they had the reigns?
There is something seriously wrong with the GOP. They may be the most dangerous group on our planet.
Where are the spending cuts? Not one word about what democrats are willing to cut.
Apparently Obama wants taxes to go up on everyone. Boehner offered a plan to tax millionaires more and Obama rejects it.
Kevin T: Get your head out of your ass and watch the news. Obama HAS agreed to spending cuts that are greater than the GOP has proposed over the past 25 years!
The Boner's plan is to cut spending, cap deductions and close loopholes. Can you cite an example of one specific item he has proposed?
The Democrats are willing to end the Payroll Tax Holiday. Tax bump on the 100%.
President Obama presumably agreed to lower Social Security benefits. Rep. Pelosi backed the President despite taking heat from the further left.
One would think there an agreement was closer than last year.
Keven, look back at the past four years, and you will find the President Obama HAS been doing many cuts to the spending. Problem is, boner and the Republican/tea Want to see blood, before they are satisfied. So crawl back into your crib, little boy, and let the adults make comments.
MJ The problem is that the repos, only want to help the rick, and famous, while the rest of us dye trying to servive. I guess you like seeing your fellow Americans suffer, for the sake of these rich and famous. The payroll tax holiday, IS a repo idea not Obamas. So I say to(like I said to keven0 Crawl back in to your crib, little boy, and let the adults make comments, you can play with your toys!!!!!!!!!!!
Where are the "spending cuts" in Boehner's "PlanB?" I don't find them listed. I do notice that he has raised the threshold by $750-thousand but I don't see any spending reductions itemized. Shouldn't that be at the forefront of any Republican 'deal?'
Tax rates on the very wealthy are VERY LOW, compared to other times in the last 80 years, when our country was strapped for cash. Scroll down and look at the graph here:
http://www.businessinsider.com/history-of-tax-rates?op=1
Boehner, get yourself a history lesson.
The Republicans should abort Plan B. This is just a junior high level ploy to try to force a veto and make the President look like the bad guy. The Republicans obviously think the American public is composed of total fools. Look how that thinking worked out for you in the last election. I, for one, can't wait for the President to call Boehner's bluff and let the spending cuts and tax increases start in 2013. I am particularly hopeful that the DoD budget cuts occur. We spend WAY too much of our budget on the military. Trust me. There is UNBELIEVABLE WASTE in our armed forces. If you don't believe that, you have either never served or never known anyone who has.
"AMERI-CAN-DO"
WE CAN AND WE MUST DO..
Combine a few letters from the words REPUBLICAN DEMOCRAT and they Could Spell..AMERI-CAN-DO and they SHOULD SPELL AMERI-CAN-DO As ONE UNITED TEAM WORKING TOGETHER as a "ONE UNITED NATION" that solve America's Problems and Builds A Better America For The Future Of Our Children & Our Grandchildren.
What ever it takes ! ! Unfortunately it will take the very wealthy to pay a few more bucks to help out more.."THIS IS ABSOLUTELY A NO-BRAINER" and has to Implemented NOW.
NEITHER OF THESE WORDS (REPUBLICAN,DEMOCRAT) SPELLED SEPARATELY CAN SPELL.. "AMERI-CAN-DO" It Takes Both To Spell AMERI-CAN-DO and it will take BOTH PARTIES TO BUILD A BETTER FUTURE FOR ALL OF AMERICA'S CHILDREN & THEIR CHILDREN.
"UNITED WE STAND" and "TEAM WORK WORKS"
(these statements aren't just words they are facts)
"STAND BY OUR PRESIDENT & WORK WITH HIM" He is NOT just the Democrats President he is "THE PRESIDENT OF THE UNITED STATES" and needs ALL PARTIES TO FOLLOW HIS LEAD BECAUSE HE IS AMERICA'S LEADER, HE WAS ELECTED BY AMERICA TO LEAD OUR NATION. "SO LET HIM LEAD" "STAND BY HIM"
My Advice To anyone in Political Power that doesn't like his ideas is to STOP TAKE A DEEP BREATH, TAKE TWO STEPS BACK & THINK AMERICAN'S FIRST & Your POLITICAL PARTY SECOND.
"THIS IS WHY "WE THE PEOPLE PUT YOU IN OFFICE" FOCUS ON THE BALL ONLY..STEP OUT SIDE YOUR SELVES & WORK WITH
"THE PRESIDENT OF THE UNITED STATES OF AMERICA"
HE IS YOUR PRESIDENT AS WELL RATHER YOU AGREE WITH HIM OR NOT ! ! ! "JUST STOP FIGHTING HIM" NOT PRODUCTIVE TO YOUR PARTY OR TO AMERICA.
I guess someone forgot to tell BHO Plan B is Pelozi's plan he just rejected.... I guess everyone was right he's not serious at all....
It isnt Pelosis plan it was a proposal meant to shake out just where the Republicans stand. get a clue
Poor John Boehner.
Stuck between a rock and a stiff drink.
He is nothing but a puppet for the evil at the top of the GOP
At this point I almost feel sorry for this clown. Almost
When BONER puts his foot in his mouth, he should at least wash his feet first. NO BRAINER BONER, has a lot to learn about the American way, and stop trying to make it HITLERS way.
God...listen up...we need some help on this government thing...we've got two extremist groups holding up progress for all the rest of us...we need you to kill off the liberal democrats and the conservative republicans...no not just the ones in the government all of them...something like that Sodom and Gomorrah thing you did but bigger...I know they're not all living in two different cities...it's just that there's two different groups spread all over this place...now you got the idea...we ask this in the name of your son Jesus Christ Amen...
Now to see how this works out...
PTI,
Obama where the hell is the cuts in entitlements for corporations or coporate welfare. They are people too remember .Doing anything about peanut, sugar, oil, milk,and other entitlements? This is bull****. We the people continuely get screwed, while the rich and corporate america continue to suck the life out of us.
He's tried twice...Both times shot down by the Republicans in congress.
Come on, how can you squeeze an egotist like Obama? His puppet, Reid, will stop any attempt by Republicans to get what they want. OB will just stay on the golf course and claim the opposition is at fault. This is only the beginning. Four more years folks. Get ready for chaos.
Boehener shouldn’t give in. This government is spending more than it earns, and not to mention the unlimited printing press thanks to Bernanke and Fed.
I say go over the dam cliff and we will sort it out next year !
I don't I say earn your money and get the job done.
Looking at the financial page were in or heading for another recession. More job losses and lower wages. We have miss managed money for a long time.
And don't give me the crap that Bush did it. We voted for a president who we hoped could correct things and make progress.
Well this president can't. It's the middle class again that will not be paying there mortgages and living on food stamps because the prices keep going up and wages go down. Those lucky enough to make it through with a job will again be saying "Well you should not of bought a house".
I'd hope that the government could put on there thinking caps and come up with a solution to help the common people.
That is not going to happen. Maybe a full out depression not discussed as a recession would be the answer. At least everyone get an even break. We all have to start over.
PLAN B - "...while TWO (2) MILLION Americans would lose unemployment insurance", on December 29th, 2012.
Through no fault of their own, I know of 2 million Americans and their families, (now read 6-8 MILLION Americans effected), who will not be having a "Merry Christmas" if this gets passed as advertised.
As I say if Americans and there families have to suffer so should business it's time to see business take the big fall as well. Depression. Nasty as it is everyone is going to get a fair break then.
Dear TeaNuts and Crazy GOP Righties,
Obama won the election, running on the platform of fairness...that the Uber Rich shouldn't get breaks before the middle and lower classes are taken care of. Boehner seems to still think he has the power to make the Tea/Righties wishes come true. Sorry, but he has no such capital. The American Public voted in Obama.
Boehner needs to quit believing that people who make a quarter of a million dollars a year or more don't need to pay more. The Uber Rich are paying SO MUCH LESS in taxes than they have in the past. Dummy up ! Scroll down a little , and look at the graph. WW1?? WW2? the 50's?? Reagan Admin? Come on, righties! Todays tax rates on the Wealthy are a freakin' BARGAIN!!!!!
http://www.businessinsider.com/history-of-tax-rates?op=1
Boehner, get a History lesson from the above link!!
...And the Right, nutted by reality, has no response to my previous post.
What does it feel like to have the real facts about historical tax rates on the uber rich presented to you, TeaNuts and AntiTaxNuts?
http://www.businessinsider.com/history-of-tax-rates?op=1
Your reply??
What, You're speechless??? Of course you are!
checkered, wow... that does show how the republicans have puppet masters that are the rich, it seems to show everytime the democrats fix a problem the republicans take over and give it all away to the rich and put it on the backs of the middle class! all I can say is great work and a great find!!! no one can say other wise....
checkered, hey, also look how ALEC is the republican playbook to steal the rights of the workers and pass laws that benefit the rich that call it a so called non-profit org, nothing more than a lobby group so the benefits given to republican gov's will not be taxed for the gifts that are given to them, just another power and money grab for the rich...
Facts are always inconvenient to the Right...
First, the tax laws take effect on January 1, 2013 because that is how
our tax system is set up. We have a calender tax year. What you make
between january 1 and December 31 is that tax year.
Secondly, the spending cuts don't take effect until July 1, 2013 becaue
the government is on a July 1 to June 30 annual budget.
So this fiscal cliff is first a tax problem on January 1-the Bush tax
cuts expire then. But the spending cuts don't need to be agreed to
until june 30, 2013.
WRONG.
Can they perhaps meet in the middle somewhere? $700,000 or $650,000?
As a couple in the middle I can say (since I do our taxes each year) that I don`t care. We get hit by the AMT and have for years now. There is a range where we pay the same no matter what because of the AMT. I am sure there is a number above our gross income where the AMT is no longer an issue and I suspect it is somewhere in the range above. No doubt someone in the IRS can figure out what the number is where the taxes actually increase because it goes beyond the AMT.
What I would like to see is that income regardless of source is hit at the same level. That would make me happy.
Democrats proposed plan B a year ago. Now Obama is acting like a big baby and wants everything he can get in the wrong direction for this country. Almost no concession and he campaigned on listening to others opinions. Boehner makes 100% sense on not overtaxing wealthier ppl because 90% of tax dollars come from top 10% of income earners. Obama says this is unfair? The rich are not the enemy Obama. Wasting billions of our $ on spending failures is.
I wish Romney was president. This fiscal cliff would have been held off in days. Now Obama is going to run the US off the cliff. The top 5% of income earners pay most of our taxes. Obama says this is unfair?