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Subscribe to RSSKey staffers huddle behind closed doors against the backdrop of a snowy capital as they attempt to hammer a last-minute deal to avoid going over the so-called fiscal cliff. NBC's Kristen Welker reports.
Updated 6:30 p.m. ET -- President Barack Obama tasked the United States Senate with trying to resolve the “fiscal cliff” in the waning hours before the New Year following a meeting between congressional leaders and the president.
Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., will lead the last-minute effort to avert the automatic tax hikes and spending cuts set to take effect on Jan. 1 unless Congress acts.
And Obama said he is “optimistic” they can reach an accord before midnight on New Year’s Eve, the point at which the government would hit the fiscal cliff.
Absent that, the president said he had asked Reid to instead advance a bare-boned proposal that would extend the 2001 Bush tax cuts for income under $250,000.
Related -- Cliff Notes: Five things to watch at today's White House meeting
“I still want to get this done,” Obama said after his discussions with congressional leaders. He said “the hour for immediate action is here. It is now."
The president will appear exclusively on Sunday on NBC's "Meet the Press," where he's expected to further outline steps toward reaching a final deal.
The White House talks -- at which Obama presented no new offer to Republicans in Congress -- yielded “no concrete proposal,” Reid told reporters at the Capitol following the meeting.
President Barack Obama meets with NBC's David Gregory on Meet the Press Sunday morning. Gregory explains that for the president, this has become a matter of principle.
But in the waning hours before the end-of-year deadline, senators are now scrambling to produce a bipartisan package, at the request of Speaker John Boehner, R-Ohio, that can muster enough support in the House.
Reid, McConnell, Boehner, and House Minority Leader Nancy Pelosi, D-Calif., spent the meeting “discussing potential options and components for a plan that could pass both chambers of Congress,” according to a Boehner aide.
But the most significant development appeared to be the emerging consensus that any final agreement would have to emerge from the Senate. That deal would necessarily require a “bipartisan approach,” according to the office of McConnell, the Republican leader in the upper chamber.
Among the major sticking points, senior Democratic aides told NBC’s Kelly O’Donnell, involve the income threshold at which tax rates would be allowed to rise and the level at which estates are taxed.
Boehner’s failed effort last week to push through a fallback plan with only Republican votes laid bare the internal GOP divisions after conservatives balked at supporting a plan from the speaker to allow tax rates to rise on income over $1 million.
The unsuccessful effort suggested that Boehner would need to lean upon Pelosi for Democratic votes if a deal -- which has eluded Obama and Congress for the better part of the last two years -- is to pass.
A Senate-led agreement, though, faces no surefire guarantee of passage in the House.
“The speaker told the president that if the Senate amends the House-passed legislation and sends back a plan, the House will consider it -- either by accepting or amending,” Boehner’s aide emailed reporters.
One of the biggest sticking points in the fiscal cliff negotiations has been which income level ought to be required to pay additional taxes. On Friday, Democratic and Republican leaders met for an hour at the White House. NBC's Peter Alexander reports.
The protracted stalemate between Obama-led Democrats and congressional Republicans had prompted Friday's last-ditch meeting at the White House. It lasted just over an hour, and included Vice President Joe Biden and Treasury Secretary Tim Geithner.
Sources familiar with the meeting said that Obama made no new offer to Republicans, urging them to hold an up-or-down vote on a Democratic proposal to preserve existing tax rates for income under $250,000 and extend unemployment benefits (among other unresolved issues).
It’s that very proposal which Obama said he would ask Reid to advance should he and McConnell fail to strike a deal.
“I believe such a proposal could pass both houses with bipartisan majorities, as long as those leaders actually allow it to come to a vote,” he said.
Republicans had previously rejected such a proposal, but could feel pressure to relent to administration pressure in order to forestall across-the-board tax hikes in just a few days. The source familiar with the meeting told NBC's Peter Alexander and Kristen Welker that Obama asked Republicans what they would be willing to support, if not that proposal.
Amid negotiations toward a final deal, the House was set to return to Washington on Sunday at Boehner’s request, and remain at work through Jan. 2 -- the final day before the 112th Congress concludes and the next batch of lawmakers are sworn into office.
In the meanwhile, Obama voiced frustration toward the repeated pattern in Congress these past few years of lurching from crisis to crisis before reaching a last-minute deal to stave off catastrophe.
“The American people are watching what we do here. Obviously, their patience is already thin. This is deja vu all over again,” Obama said. “America wonders why, for some reason, in this town you can’t get stuff done in an organized timetable ... The American people are not going to have any patience for a politically self-inflicted wound to our economy.”
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Fell off that cliff years ago, just wondering how much longer before I hit ground!!! Pretty soon now I think and I don't even have to open my eyes!!
Amy
So true
GOP. Aka true losers
Yes, lets give government some more of our money. Just look at some of their accomplishments below.
a.. The U.S. Postal Service was established in 1775. You have had 234 years to get it right and it is broke.
b.. Social Security was established in 1935. You have had 74 years to get it right and it is broke.
c.. Fannie Mae was established in 1938. You have had 71 years to get it right and it is broke.
d.. War on Poverty started in 1964. You have had 45 years to get it right; $1 trillion of our money is confiscated each year and transferred to "the poor" and they only want more.
e.. Medicare and Medicaid were established in 1965. You have had 44 years to get it right and they are broke.
f.. Freddie Mac was established in 1970. You have had 39 years to get it right and it is broke.
g.. The Department of Energy was created in 1977 to lessen our dependence on foreign oil. It has ballooned to 16,000 employees with a budget of $24 billion a year and we import more oil than ever before. You had 32 years to get it right and it is an abysmal failure.
Exactly right, amazing how ignorant liberals still want to believe that the government is the answer. Only proves that they are pathetic under achievers.
Willie, so true. Could not find one liberal on the vine earlier when they had a piece on the gun killings in Chicago.
I wish all the "rich" people would move out of our country, I would like to see the "Oh Crap" look on every liberals face.
They are and they will continue. Other countries are happy to have them. Happens every time the left wants to tax the rich more. Go ask California how their tax revenues are going to look next year after increasing the taxes on the rich.
What most people don't understand, and especially our politicians is that the truly wealthy always have options.
If you want to vilify them and abuse them, as does our President, they will ultimately choose another option in lieu of staying here.
How come rich liberals don't whine like rich conservatives do about taxes?
California just fixed things in the last election and is looking to have a budget surplus by 2015...
Rich people aren't leaving California, it's lower and middle income white people people that are moving out.
This idea that businesses are fleeing is ridiculous, every fortune 1000 corporation has operations here...
Only dumb FUX NEWS fans think California is a horrible place to live...
newbook, you must be referring to Canada, definitely not Cali. Secondly, rich liberals are phonies who could care less about your dumb azz. Like the Hollywood types.
Gee and why do you think that is? Perhaps being overrun with "brown no traceable income" people?
Joe, you're awful angry and delusional, I hope you don't have a gun.
Talk, why are conservatives such racist and scared of people that don't look like themselves? Is that why dumb FUX NEWS fans hate Obama so much, after all he's fixing the mess Bush made and doing a damn fine job at it too.
Newbook, you get back to me on that budget surplus in 2015. LMFAO!
newbook, I grew up having black friends and still do, where as you probably only seen them on T.V. In case you forgot Obama is half white and raised by whites. Facts are the guy is not a leader, never had any qualifications, never held a real job as an adult. And you thought that he would be successful?
You, as all liberals do, missed the point.
And Joe and Stop the madness, all you have to do is look at newbook's posts of the day and you will see that he/she too is a graduate of the Feisty, Seeking, Pat, Layton, Beverly,
OuthouseBackhouse, Amy, IR, blackcatwhitecat (who has no dog in the hunt as he/she/it is in Canada) College of Undying Love for the Liberal/Progressive movement.Man I hope you guys become extinct pretty soon. I give it another two years and you will see that "The Agenda" is going to affect you too and not in the way you think it is.
Joe - You really don't understand how government works do you? Hate to burst your bubble, but the only person who has the qualifications to be President hasn't decided if she is going to run yet and that's Hilary Clinton. Bill didn't even have the qualification when he ran, nor did anyone else in the last 50 years. And for financial matters in the government, the law states that the bills need to start in the House. So nevermind facts and live happy in your delusion.
What is everyone worried about ? There was never going to be a fiscal cliff, it was just another tactic by Congress to kick the can down the road to avoid facing the realities of cleaning up the fiscal mess they created.
Worry not, Congress will pass a temporary stop gap measure to kick the can down the road a little further
Truth is....if Obama didn't insist on taxing the "rich" in order to operate the US Gov't for NINE DAYS, we would not be having any 'cliff' discussions right now. The Republicans are right to deny ANY tax increases until and unless there is serious cutbacks in SPENDING. Thus, NINE DAYS of spending revenue demanded by Obama is risking tax hikes for all tax payers. Yet, he insists that he is looking out for the middle class.
Sure the "rich" have prospered in the last few years while the middle class has been declining. However, the "rich" (5% of top earners) have continued to pay 70% of revenue. As they have made more, they have payed more.
Insted of the token demand of the rich paying more, why not emphsize the creation of more jobs, e.g. more tax payers for all tax brackets? I say reduce regulations, reduce corprorate income taxes and repatriate the 2 trillion dollars in foreign profits corporations are holding and reduce the taxes on that money to 5% so that the investments in American enterprise grows?
Chuck, ..."they have made more and paid more." Do you mean like Romney who forfeited charitable donations to get his tax burden up to 13%, almost as high as his secretary ?
Are you suggesting we bribe the rich not to hide their fortunes in foreign bank accounts ? I say we should enforce the laws that make it a crime for American citizens to hide taxable income. If the rich do not want to pay taxes, fine, throw their a$$es in jail and fine the tar out of them.
I would venture to say the only ones left who are worried about a financial cliff are government employees as they are about the only people left with a paycheckabove minimum wage.
I think most of you Reps are confusing success to preferential treatment.. Low to no taxes is what made som e of you successes .. definitely not hard work. increased taxes on the 1% may seem unreasonable to some.. but who benefited most from the lenient tax polices.. who's incomes have double, tripled, and more in the last 15 yrs. Its time to pay the devil his due... when you make a deal with the devil... the devil will come for his restitution. He will never come when your good and ready... Geez just watch the first couple seasons of "Supernatural"
Ray, you sound like a typical liberal loser. "Not hard work" try running a business some time. The reality is you don't have what it takes and that is why you are just a little lib.
Hey Ray, simple solution, just become rich yourself. Hint, its not so easy and usually requires very hard work, an education, motivation, perseverance to overcome many obstacles, and understanding that it is you who is responsible for yourself and your family, not the government or somebody else. And if you should ever make it you may also find yourself less than thrilled with the Robin Hood mentality that seeks to penalize you for succeeding.
Rand Paul's too Libertarian for me, but he's turning into a Pretty Awesome Senator
He said he's going to filibuster any increase in the debt ceiling unless we get a balanced budget amendment in exchange.
Finally, 1 politician in the Senate who is serious. Now he's just make sure that the other side can't come up with 60 to break his filibuster.
Tea Party Republicans, despite all their patriotic crap, are putting their own ridiculous ideology and their own re-elections, before the country's well-being. Boehner can't do anything with them. Let's hope Democrats get a majority in the House in the next election.
How about the more moderate Republicans and Democrats try working together rather than dogmatically following their inept leaders down the primrose path?
No. Dems are refusing to cut anything. Again. 0 cuts in 2013, tiny cuts somewhere down the road...allegedly.
Chesty...
Bull****. Or were you not paying attention to the legislation that came out of the 2011 debt ceiling debacle?
You goobers need to at least check to make sure that your statements cannot be refuted by someone with 20 seconds and a functional Internet. It is embarrassing.
Doctor logic, you are delusional and should see a real doctor now that Obamacare should cover you.
joe...
Where am I delusional?
http://money.cnn.com/2011/08/01/news/economy/debt_ceiling_deal_cbo/index.htm
Or is the CBO one of those "left-leaning" organizations?!?!
Doc, sorry, all liberals are delusional, you live in the land of make believe.
And if those delusional founding fathers weren't so liberal, then you wouldn't have to worry about any of this, the King would simply tell you what to do.
I would love to see what our government would look like if parties did not exist. It couldn't be any worse than it is now.
I also wonder what our country would look like if it were governed by mature and honest people. It would be much better than it is now.
A bunch of corrupt, immoral politicians masqueraded as statesmen has got naive Americans fooled.
Dressed in the finest threads and riding on a set of black limosine wheels, these crooks are living the high-life off the taxpayers when not directly stealing from them or giving themselves pay raises while unemployed workers are strugging to land a meager job that can barely support a family. Having created the entire economic mess, these fake leaders will now pretend to save the American people all the while basking in the media spot light, and posturing their vanity.
It's prime time, Show Time.
Meanwhile, the American people look at these criminals with awe and are overwhelmed by the 'dignity' of these public servants.
I doubt there are many American's that look at these fools with awe.
The issue is that while many American's have a very low opinion of Congress as a whole, they have a fairly high opinion of their own representatives - we all think the problem is in someone else's back yard.
Last Ditch. Oh no! Time to push the panic button. The politicians and media getting the American people scared and creating as they usually do FEAR!!! Instead of sitting around and watching that stupid ball drop at midnight in Times Square the American Idiots can watch the clock strike midnight and celebrate the New Year where their elected officials will s.rew them again. Me I'll watch a movie and be in bed around 10:30..Happy (for some) New Year everyone.
Racist Senate Dems continue "NO COLOREDS ALLOWED" policy in Hawaii Senate appointment.
Another Jewish white guy. Brian Schatz selected to replace Daniel Inouye. This makes about 13 Jewish senators (Jews are about 3% of Democratic party voters) and 0 black senators out of 55, even though blacks are 25% of the Democratic Party base.
Democrats should have about 14 black senators, given the makeup of their party. They have 0.
That is why they are hypocrites!!! They just want to keep minorities on the Dem. Plantation.
We also have a lot of dogs and cats, how many of those should be delegated to each legislative body?
Price hikes, Massive layoffs, Cut unemployment, Tax hikes, Delayed W-2's and Crippling military cuts, yeah we will be fine. There wont be mass hysteria or looting during this little hiccup... whats a good website to buy cinder blocks? they dont need to be real heavy, just enough to shatter pane glass windows?
Its very clear the house tea party republicans have no interest in whats good for the lower 98 income earners . ALL Boehner and McConnel care about is the top 2 percent income earners . The Senate had a bill in July worked out for the fiscal cliff upcomming problem and house republicans took no action once again . Its like getting paid to do nothing in the U.S. house of represenatives . What is happy about the new year ? knowing your getting a couple of grand more in tax to pay the end of the year ?
The whole lot of them need to be locked inside until they come up with a REAL solution ... not just one that will buy time, i.e., STALL tactics!
Lock the doors!
I think Boehner is a real asshat - but in this case he tried but his own party told him to pound sand.
The issue is congress as a whole - the radicals are still in charge.
Let's be real, we are heading over the fiscal cliff. But I am not sure it is as big of a cliff as the media portrays. It may be painful in the short run, but it might be just what this country needs over the long run.
How can you resolve a financial problem without first having a BUDGET passed.
In your home, in business and all other levels of government you have a budget to allocate where your money goes. When times and money gets short to amend your budget to cover priorities while dropping non essentials...
BUT FIRST YOU HAVE TO HAVE A BUDGET!
Reid, and the rest of them should get off of their duffs in the senate and form a budget.....they have failed to do this for several years in a row now.
Boehner should shut up and sit it out, its not the house's issue until the senate passes a budget and submitts it for vote anyway.
Being a moderate democrat, I just got used to Democrats being out-politicked by the GOP....it just became commonplace. But, the GOP has gotten rolled over and over again by Obama...the fiscal cliff talks are a severe example of this. The GOP is going to lose on policy AND come out much, much weaker in the public eye when all is said and done. The result: advantage Obama in debt ceiling talks....advantage Obama on gun control....advantage Obama on immigration etc..
This is proof there is a God because the tea party that the GOP embraced so wholeheartedly, will wind up being their undoing as a party for at least one generation.
Clinton had guts. He called the Republicans' bluff, the Republicans took the bait, the Government shut down, Newt's career ended, the Democrats took the House and the Senate, the Clinton Administration created a surplus.
In comes Bush. He created the Bush Tax Cuts which created one of the highest deficits in US history. To this day those same Bush Tax Cuts are reeking havoc on the Economy.
What doesn't Obama do, wimp out, like he did with healthcare and the budget deal, giving us a water downed almost meaningless laws.
Now Obama looks like he may wimp out on this Bush Tax cut issue by doing like he always does, talk big at first, cave and then produce watered down bull-s h i t-.
Hey. He was reelected. He can do whatever he wants.
Where is Clinton when you need him?
What the **** are you talking about? Where does the Obama "wimping out" come from?
Possibly the most idiotic statement of the day. My guess is it isn't "meaningless" to any of the 35 million who will now have health insurance because of his "meaningless" legislation.
I am so sick of this circus...kiss our royal frasses..all of you frasses.
Rand Paul. Tea bagging moron
If the repub house has allready passed two bills continuing tax breaks for the middle class etc, then why does Obama keep yelling they are blocking. why does he always blame somebody else for his failings.? The speaker has not been elected president. Obama won the election so whats his problem? He goes to hawaii and leaves orders for the senate to have it all figured out when he gets back.....guess they didn't do that. so here we are called into a meeting at the last min. at the White House. Why??? Does he want to serve drinks and divvy up the spoils of their work? Didn't the speaker supply him with enough laughs at their last mai tai party so he needs more backup. This government is insane.
Thanks gop
We agree it is a great moment in bad politics to show how not to take action when the effect of todays budget and tax decisions give an unresponsive economy plan to many Democracy models growing around the world.