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UPDATED 11: 40 AM ET: There is an emerging deal to avert the fiscal cliff, led by negotiations between Senate Minority Leader Mitch McConnell and Vice President Joe Biden, but the key sticking point remains the sequester and deficit reduction, aides say.
Biden and Republican Leader Mitch McConnell exchanged phone calls until about midnight last night and aides continued beyond that, aides tell NBC News. Democratic Leader Harry Reid left Capitol Hill in the evening Sunday and was not directly involved last night.
NBC's Chuck Todd weighs in on the chance of a fiscal cliff deal just hours before the deadline, saying it "really depends on the political motivations" of the people at the negotiation table.
Aides say the Vice President and McConnell spoke at 12:45 am and again at 6:30 am this morning. GOP sources say the inclusion of the vice president has made a favorable difference in the talks, given his understanding of legislation and his personal relationships.
Two senior aides to McConnell continued with White House representatives overnight and again today.
GOP aides say they expect their party to likely defer its biggest fight over deficit reduction when the debt-ceiling debate takes center stage in the new year. Republicans say given the time left, there is limited, if no chance, to secure specific detailed alternative spending cuts right now.
Republicans would like to see the "sequester" across the board cuts kept in place to drive down the deficit, but Democrats are resisting that and offer a two-year delay.
But Democrats caution that the "emerging deal" which "creates another cliff in three months probably would not have the votes to pass the two chambers." That is a reference to the looming fights over the debt ceiling and the overall government budget deadline in March.
Rep. Barbara Lee, D-Calif., talks about the latest developments on the fiscal cliff, and why she thinks Congress hasn't come to a resolution.
Democrats also argue the new revenue generated by tax increases, especially if reduced from the Democrats' earlier targets, should be used to cover the costs of delaying the automatic spending cuts for two years and protecting the long-term jobless with extended benefits.
Cuts that would go into effect as a result of the sequester would be deep and across the board. The discretionary cuts were signed into law in an effort law to compel Washington to address the long-term deficit. So far, the parties have been unable to agree on replacement cuts that would be targeted and therefore less arbitrary.
The most recent Democratic offer on taxes, presented on Saturday night, is setting the new income threshold at $450,000, sources say. That represents an increase over the president's original $250,000 threshold for higher rates and Obama's later offer to Boehner of $400,000.
Rep. Jeff Flake, R-Ariz., opposes any delay of the sequester, when steep, automatic spending cuts will slash budgets at the Pentagon and other government agencies. Flake says he'll take any fiscal cliff deal that prevents a tax hike for most Americans.
Senior Republicans say the GOP is looking for a figure at about $550,000, down from House Speaker John Boehner's $1 million and retaining current estate tax rates. That could mean, say various members, a split-the-difference deal at $500,000.
Significant progress has been made on the income tax threshold and estates taxes, but the figures will not be set in stone until all details are resolved, including unemployment benefits, preventing a scheduled cut to medical provider's Medicare payments (know as the Doc Fix), and a fix to remove millions of middle class taxpayers from the "alternative minimum tax."
The taxes being discussed, by the way, would be made permanent and not given a "sunset provision" in law, which is unusual. There would be no expiration date like the one that forced this debate.
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Seems like the perfect compromise for what each party wants is to go over the cliff...Hold my hand, I am ready to jump...we get spending cuts and increased taxes. Works for me and is the pain point we all need to feel, share and go through. This is the band aid that needs to come tearing off...
OK. The Republicans want to cut entitlements. What are they? Simple. Things that you are entitled to for a lifetime being under the capitalist thumb. You pay taxes, you worked for it, you are middle class and need this backup plan to protect yourself and your family.
The Republicans want to eliminate your safety net, Medicare, Medicaid and Social Security. They claim that it's too expensive to maintain. BUT. They have no problem giving billions of $ in subsidies to big oil every year. They have no problem funding a trillion dollar bloated military budget, buying things that the military don't want.
The Republicans want to Kill the Federal government and put your life in the hands of the States and Corporations. The Corporations run things with the States being their pawns.
The Republicans want to kill the unions, which unlike private sector, pay well, have great benefits and don’t send jobs overseas. The Unions have the better path to the “American Dream”.
Republicans want a Plutocracy, you know, like Russia.
The Republicans are communists and can go straight to h e l l..
Larry, your post only shows us your ignorance of the entire issue.
Not only is he ignorant, I think he might have a mental problem too, unfortunately.
The dumocrat morons are on the loose today, I'm sure as the cliff get closer they'll rear that ole give me something for nothing, self serving, blame the rich, and lazy oxygen deprived head out from under the rock and whine all next year. Glad to see you mindless magots put some skin into the game, now cry me a river.
They should include their own Wage cuts for Spending. Were all taking cuts in wages & benefits except them..Boehners $223,500, Minority & Majority Whips 194,200, Reps $162,400 all for 143 Days or so..Retirements are 80% of their Wages..Lets get serious, at one time farmers did these jobs on their off season for Free 6 months out of the Year..
No deal off the cliff we go,,back totality for you working stiffs,,
Gov'ts that issue non-convertible fiat currency (US, Japan, UK, China) don't need taxes for "revenue". Your federal taxes don't "pay for" anything. There is no need to "borrow" your own currency from another country (you would have to GIVE it to them first). Why else would you bother to adopt fiat in the first place? It allows you to create your currency (USD in our case) without any revenue whatsoever. When the US Gov't spends, it ends up in our bank accounts (yours, mine, the States, Corps., Foreigners). The only reason the Gov't would need to tax it back out is if the economy started overheating and causing demand-pull inflation (too much money chasing too few goods). So, the US Gov't has an unlimited ability to CREATE US Dollars. Taxes no longer have any function as revenue. That's NOT to say that the Gov't has an unlimited ability to SPEND. Federal taxes function to cool off the economy. That's it. "The Deficit" is just an accounting record of the NET dollars added to our bank accounts. "The National Debt" is the money stored in US Treasuries, in other words, our national savings. If you want the US Gov't to "balance their budget" then you want the Gov't to confiscate your savings. Why would you want that?
The Main reason it's not done "Mr. President" is your Ideological stonewalling and Class warfare Rhetoric.
Nothing else!
The next time you have a chance to vote for a Tea Party raver..........DON"T
Chuck, Mark, Domenico and brook now need to dig into why there is an executive order to give all these wonderful folks a pay raise! This needs to go on the front page of the news! Please don't let this happen!
I think one of the best comments was Underemployed as he set the record straight on the subject of using so called food stamps.
Another comment I read was quite good until the very end when the writers true bias came out.
Some comments were so biased that it spoke very poorly of the writer.
No I didn't read all the comments, might have been a few good ones, bigoted, biased and down right
stupid comments are a waste of time.
Let's see. From the day "W" took office, with Clinton's budget surplus in place, he started putting things on the credit card, unpaid for. The Gulf War, tax breaks, prescription drugs, etc. Where would this country be now if George W. Bush ran with his own people instead of Daddy's people (Shultz, etc) who all bailed on him soon after the win. They all knew he was an idiot! He certainly proved that big money will win an election for the GOP. And right up until this afternoon the Republicans have fought to take care of their pyramid of wealth that pays their way into office in every election. If they give up on those check writers and cave in to Obama, those checks might start getting smaller real soon. Can't afford that. Especially that surtax on tanning booths Obama wants to throw in for Speaker Boner!
So on the third of January, will someone fire Boner? This isn't the funny part anymore. Lot's of people are asking. The village idiot can do what he does. Just say no to anything the President wants. Hell, even I can do that. I'm not just trying to get rid of him. I want to terminate that cushy pension he's in line to get too. There has to be some fallout for being the leader of the absolute worst House in American history!
mikemather64
So the new administration lowers rate and charges up more? Suggests that a responsible and "balanced approach" doesn't actually include any spending cuts? And in the 11th hour, turns to Mr. Biden?
Here is a great concept, pass the taxes, unemployment and everything else they have agree on, let the automatic cuts go then it is win/win for all the elected individuals.
Obama increase in spending annually has been 1.4% The lowest since Truman. Bush was around 7.0% His father was over 4.0%. Reagan was the highest increase at more than 7.0%. Clinton was next lowest to Obama at under 4.0%. Who are the big spenders ? Certainly not Obama !
Okay, now that the President got his Obama Tax Cuts - Will someone PLEASE start pressing him on the deficit? He is quoted as saying: "This agreement will also grow the economy and shrink our deficits in a balanced way — by investing in our middle class, and by asking the wealthy to pay a little more."
Please Mr. President, show me how increasing the tax rate by about 3% on the top 1.5% will reduce the deficit, because all I see you doing is increasing spending.
Kelly O'Donnel - Come on! Press this administration on some real facts about projected deficits for the next 4 years. Don't fall for the 10 year stuff -- He won't be in office then. He can only control the next 4 years.
Congress should take the lead in sacrifice for debt reduction eliminate some congressional perks.
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Those obstructionists who follow the whims of that ol' "POOPY-HEAD", Grover Norquist, should relinquish their pay since they quit working for America and the loyal Americans who go to war to defend the country they love. The tax-dodging, "not-in-my-best-interest" draft dodgers (Rumsfeld & Cheney), should surrender their ill-gotten gains and alleviate a lot of our national debt. After all, their PROFITEERING is what got us into this economic mess with their unpaid wars.
To All our leaders......... LEAVE SOCIAL SECURITY ALONE!!!!!!! If Obama gives in to any adjustments, changes or just any thing then I say we start A Revolution like one that's never been seen before against all of the political games!!!!! Changing semantics that SS is an entitlement program Is BS!!! I worked my whole life and the goverment took SS money from me....They didn't ask, the just took. This is not entitlement it is money do to me and any other working person poor, middle or rich who has paid their dues into this insurance. I don't give a dam who is in charge right now or who spent the money over decades of mismanagement Fix it an not at the cost of the elderly!!!!! Reagan already screwed every elder person with the changes he made,( extending the age for retiring, recalculating how COLA is figured). Mr pres. and the rest of you leaders don't even look at SS. We paid our dues!!!!!!!!!!! Communist China fixed allot of that countries problems by screwing the ELDERLY, Read you history books!!! Out leaders say all must suffer, we already suffered under Reagan. DON'T DO IT AGAIN!!!!!!!!!! If Obama gives in even an inch then the has lied to us, cheated us, stole from us, and If they even change the retirement date I say we IMPEACH OUR ENTIRE SENATE, PRESIDENT, CONGRESS AND PUT A NEW ORDER GOVERNMENT THAT WILL BE FOR THE PEOPLE, BY THE PEOPLE AND OF THE PEOPLE. Winning the Presidency by 3 million votes out of 120,000,000 is barely a majority but a warning that we are in serious disagreement on EVERYTHING!! Better fix it right or we (the people) WILL!!!!