Boehner: No progress in fiscal cliff talks
WASHINGTON (AP) - House Speaker John Boehner said Friday there has been no progress in negotiations to avert a "fiscal cliff" combination of automatic tax increases and spending cuts in January and called on President Barack Obama to produce a new offer.
Four days after House Republicans offered a plan to raise tax revenues and cut spending, Boehner told reporters that the White House has failed to outline its proposal and instead has pushed the nation closer to a fiscal cliff that economists warn could plunge the country into another recession. The two men also spoke privately by phone on Wednesday. Boehner described the conversation as pleasant "but just more of the same."
"Since then, there's been no counteroffer from the White House," Boehner complained. "Instead, reports indicate that the president has adopted a deliberate strategy to slow-walk our economy right to the edge of the fiscal cliff."
Boehner singled out for criticism White House aides who have said Obama was willing to allow Bush-era tax cuts for everyone to expire on Jan. 1 and automatic, across-the-board spending cuts to kick in the next day. He called their comments "reckless talk."
Boehner repeated the long-standing Republican argument that raising tax rates would be detrimental to small businesses and "is not going to help our economy and it's not going to help those seeking work." Obama has insisted that any deal must include an increase in the tax rates for high earners.
But Boehner declined an opportunity to take a hard line on tax rates, skirting a direct question on whether he might be willing to accept some increase in the top tax rate, currently set at 35 percent.
"There are a lot of things that are possible to put the revenue that the president seeks on the table. But none of it's going to be possible if the president insists on his position - insists on 'my way or the highway,'" Boehner said when asked whether he might be able to accept a compromise top rate of 37 percent. "That's not the way to get to an agreement."
The Republican leader pointed out that he had offered on Monday to raise tax revenues by $800 billion over the next decade by ending or reducing tax breaks, particularly on the wealthy. The Republican plan would cut spending by $1.4 trillion, including by trimming annual increases in Social Security payments and raising the eligibility age for Medicare from 65 to 67.
"When is he going to take a step toward us?" Boehner asked of Obama.
At the White House, officials used Friday's mixed jobs report, with its modest growth in hiring, as an argument to embrace Obama's plans to avoid the fiscal cliff with a package of rate hikes for the rich, public works spending and refinancing help for struggling homeowners.
"Most pressing, President Obama has proposed, and the Senate has passed, an extension of middle-class income tax cuts that would prevent the typical middle-class family from facing a $2,200 tax increase at the beginning of next year," said Alan Krueger, chairman of Obama's Council of Economic Advisers.
Obama met at the White House on Friday with top House Democrat Nancy Pelosi, discussing a number of issues, including the fiscal cliff, a White House official said.
Tax cuts enacted during President George W. Bush's first term are scheduled to expire Dec. 31, automatically boosting tax rates to levels in place under President Bill Clinton. Obama wants those increases only to affect households with earnings of more than $250,000.
Obama is insisting that rates for upper income taxpayers rise and also wants permanent authority to prevent Congress from blocking increases in the nation's borrowing limit. The government is on track to hit its $16.4 trillion debt ceiling later this month, though the Treasury could extend the day of reckoning to February.
Separately, Pelosi, D-Calif., called on GOP leaders to schedule a vote on Senate-passed legislation to hike the top two tax rates for individual income exceeding $200,000 and family income over $250,000.
"Why are you not bringing this to the floor?" Pelosi said. "Is this a forever, forever protection of the wealthiest people in the country at the expense of the middle class?"
Four days after House Republicans offered a plan to raise tax revenues and cut spending, Boehner told reporters that the White House has failed to outline its proposal and instead has pushed the nation closer to a fiscal cliff that economists warn could plunge the country into another recession. The two men also spoke privately by phone on Wednesday. Boehner described the conversation as pleasant "but just more of the same."
"Since then, there's been no counteroffer from the White House," Boehner complained. "Instead, reports indicate that the president has adopted a deliberate strategy to slow-walk our economy right to the edge of the fiscal cliff."
Boehner singled out for criticism White House aides who have said Obama was willing to allow Bush-era tax cuts for everyone to expire on Jan. 1 and automatic, across-the-board spending cuts to kick in the next day. He called their comments "reckless talk."
Boehner repeated the long-standing Republican argument that raising tax rates would be detrimental to small businesses and "is not going to help our economy and it's not going to help those seeking work." Obama has insisted that any deal must include an increase in the tax rates for high earners.
But Boehner declined an opportunity to take a hard line on tax rates, skirting a direct question on whether he might be willing to accept some increase in the top tax rate, currently set at 35 percent.
"There are a lot of things that are possible to put the revenue that the president seeks on the table. But none of it's going to be possible if the president insists on his position - insists on 'my way or the highway,'" Boehner said when asked whether he might be able to accept a compromise top rate of 37 percent. "That's not the way to get to an agreement."
The Republican leader pointed out that he had offered on Monday to raise tax revenues by $800 billion over the next decade by ending or reducing tax breaks, particularly on the wealthy. The Republican plan would cut spending by $1.4 trillion, including by trimming annual increases in Social Security payments and raising the eligibility age for Medicare from 65 to 67.
"When is he going to take a step toward us?" Boehner asked of Obama.
At the White House, officials used Friday's mixed jobs report, with its modest growth in hiring, as an argument to embrace Obama's plans to avoid the fiscal cliff with a package of rate hikes for the rich, public works spending and refinancing help for struggling homeowners.
"Most pressing, President Obama has proposed, and the Senate has passed, an extension of middle-class income tax cuts that would prevent the typical middle-class family from facing a $2,200 tax increase at the beginning of next year," said Alan Krueger, chairman of Obama's Council of Economic Advisers.
Obama met at the White House on Friday with top House Democrat Nancy Pelosi, discussing a number of issues, including the fiscal cliff, a White House official said.
Tax cuts enacted during President George W. Bush's first term are scheduled to expire Dec. 31, automatically boosting tax rates to levels in place under President Bill Clinton. Obama wants those increases only to affect households with earnings of more than $250,000.
Obama is insisting that rates for upper income taxpayers rise and also wants permanent authority to prevent Congress from blocking increases in the nation's borrowing limit. The government is on track to hit its $16.4 trillion debt ceiling later this month, though the Treasury could extend the day of reckoning to February.
Separately, Pelosi, D-Calif., called on GOP leaders to schedule a vote on Senate-passed legislation to hike the top two tax rates for individual income exceeding $200,000 and family income over $250,000.
"Why are you not bringing this to the floor?" Pelosi said. "Is this a forever, forever protection of the wealthiest people in the country at the expense of the middle class?"
SO let me understand this - Republicans think the answer is cutting into Social Security and raising the age on Medicare but do not want the tax increases? Â Reducing tax breaks is Not the same thing as raising the taxes for the most wealthy. Â Don't they realize that if we go off this "fiscal cliff" REPUBLICANS GO TOO?! Â Somehow it feels as if the assumption is only Democrats (and that Useless percent, of course), will be impacted. Â
The democrats are still playing class warfare. Shocking it is.
Good, let the cliff happen. All it entails is allowing tax cuts expire so that we go back to the 90's tax rates where we had that so called surplus. Then it will also trigger mandatory spending cuts. If the people of this country don't want to pay off the debt themselves maybe they should stop electing the same jackasses in congress that created it! ....OBTW, I dont see the congress going over a "phisical cliff " when they vote them selves a raise, hell that is over with in 2 hours!
Republicans are wasting more time...Its kinda hard to hit the deadline when you got Mitch McConnell filibustering his own bill:
http://www.huffingtonpost.com/2012/12/06/debt-ceiling-mitch-mcconnell_n_2251515.html
Why do anything now? Just go full throttle straight off the cliff and "we the people" can all land in a third world nation.
Â
One possible solution is a one percent sales tax on Wall Street. Wall Street makes billions of transactions per second all day long. These institutions pay little to no corporate tax. This tax would help retard the speculative market giving the little people a break on increasing commodity prices like food and fuel. The money collected from this "Wall Street Tax" would go to rebuilding and improving our cities infrastructures. We need to reinvest in America! Not fight wars all over the world.
That's about all one can expect from a Republican. Â If you want to screw the US hire them.
Republicans don't understand the word "compromise" and aren't willing to negotiate. Boehner is a liar and thinks the American people won't see through his deceit. There are a lot of stupid people out there, but not enough to get Romney elected and hopefully not enough to keep these GOP bullies in a position to hijack Congress and sink the economy. Pay attention, America -- your security is being held hostage by those who care only about the richest people who have suffered the least during the recession.
Taxing the rich will never work, the only thing Obama should be doing is making a plan to bring jobs home to the U.S...  First things first, a large tax penalty for outsourcing business to other countries, and stop the enormous spending on social/entitlement programs. For God's sake stop allowing people depend on the government!!!  If those two things do not get started we will be just like Greece within months from now. Meeting day after day about Washington and Colorado having marijuana recreationally legal is not an important matter, the quality of life here in America is and since Obama's priorities are all eF'ed up we will never get anything resolved. Period.
@MrAchilles yeah because high taxes have always led to recessions...oh wait, history has shown that major recessions/depressions always follow lowering of tax rates.
Obviously you have not done the math.  Must be agonizing to be a genius and not know how math works.
"When is he going to take a step toward us?" Boehner asked of Obama.
He has. He stepped into his "entitlement' cuts. He will give tax breaks, but not to everybody and he seems willing to cut exceptions that are across the board (like home interest and child credit for example).
Â
It's YOU Mr. Boehner who won't move. Stuck like a dinosaur in a tar pit unable to lift your foot even a little for room for tax increases for wealthy (yet all too willing to remove them for everyone else).
Â
Obama is thinking what i think most people are, if you're unwilling to tax the rich voluntarily, we will just let the fiscal cliff happen and get those tax increases mandatorily.
Â
Then when the lame duck is over, maybe more sensible people will take control.
Â
We do not need to tax the rich.  We simply need to make a tax penalty on the businesses that outsource, oh and guess what, they just happen to be the richest in the U.S. Kill two birds with one stone. It is called common sense. Seems many people still lack this quality.
 @MrAchillesÂ
Â
I don't see why we cannot do both.
Â
Flatten the tax rates for ALL income (earned or otherwise), increase the rates for those making more than $250,000, or maybe $1,000,000 a year, cap tax on payroll within the US, lift caps on payroll outside the US.
Â
Oh and punish China for setting its currency to 3/5 US by tariffs on imported good made in China. I get kinda sick knowing the big Red State is profiting off of WTO "sanctioned" unfair trade with China.
Â
Â
Obama is acting like a dictator.
@Jamie Obama is simply acting on a promise he campaigned on and won - i.e., let the tax cuts on the top 2% expire. I don't see how that makes him a dictator. The Republicans however, who campaigned on not taxing the rich and a plan to cut deductions/credits to raise revenue, lost the election. Perhaps they need to give up their position of not taxing the top 2% of earners.Â
 @peckishpete I was talking about the part where he wanted the ability to add unlimited debt and have Congress not being apart of the process.