A blink on the fiscal cliff: Boehner proposes tax hike on millionaires
We have a blink from the Republican side. From the Associated Press:
WASHINGTON — Signaling new movement in “fiscal cliff” talks, House Speaker John Boehner has proposed raising the top rate for earners making more than $1 million, a person familiar with the negotiations said. President Barack Obama, who wants higher top rates for households earning more than $250,000, has not accepted the offer, this person said.
The proposal, however, indicated progress in talks that had appeared stalled. The person would only discuss the plan on the condition of anonymity because of the sensitivity of the negotiations.
As part of a broader budget deal, Boehner is still seeking more spending cuts than Obama has proposed, particularly in mandatory health care spending. Boehner has asked for a long-term increase in eligibility age for Medicare and for lower costs-of-living adjustments for Social Security.
Boehner’s tax proposal was first reported by Politico.
A Boehner aide would not comment on the report.
At issue are expiring tax rates that would automatically increase on Jan. 1 for virtually every income tax payer if Congress and the president don’t act. Steep budget cuts are also scheduled to kick in, unless Congress and Obama agree to forestall them with other deficit reduction measures.
Obama has insisted on extending current rates for the 98 percent of taxpayers in household that earn less than $250,000. He would let the top two marginal rates increase from 33 percent to 35 percent and from 36 percent to 39.6 percent for those taxpayers making over that threshold.
Until now, Boehner had maintained his opposition to raising any rates. Instead, he had proposed to raise up to $800 billion in tax revenue over 10 years by limiting tax loopholes and deductions as part of a broad tax overhaul.
But the speaker and House Republicans have come under increasing pressure form a number of Senate Republicans who say they should yield to Obama’s demand on tax rates and then press him for additional cuts early next year in exchange for an increase in the nation’s borrowing limit.
Obama has proposed about $600 billion in spending reductions over 10 years, including about $350 billion in Medicare and other health care savings. But he has also proposed about $200 billion in additional spending, including aid to the unemployed and to struggling homeowners and for public works projects.
- By Jim Galloway, Political Insider
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73 comments Add your comment
The Maestro
December 16th, 2012
11:25 am
“I don’t think so pal. It’s us independents that rule this country, you fanatical right wing and left wing nutcases influence nothing. We independents pick the winners and losers, just like loser Romney.”
Yeah, the independents are so smart. Swapping from one platform to the next depending on who seems to give the best speeches and which way the wind is blowing at the time. After Michele O spoke at the convention,CNN hacks and others–given her usually solid performance [yes, she's attractive, smart/bright, and very well-spoken] started touting her as a potential candidate in 2016. That’s where we’ve taken politics now. A good public speaker and democrat….and now you have a formidable political candidate. What a joke. And the minions listen to this and buy into it…..including the self-described highly intellectual independents.
Brosephus™
December 16th, 2012
11:26 am
But you can refer to the next Maddow, Mathews, and Bloated Ed shows to re-confirm your complex understanding of our problems and the solutions.
May I ask, who are those people, and why should they be important to me? Seems that you know more about their shows than I do as I don’t watch that talking head crap. I don’t care if it’s right wing crap or left wing crap, crap is crap.
Perhaps it’s just me and my odd view of the world, but hanging our hat on taxing the top 2% of wage earners and calling it quits….just isn’t the answer.
Someone offered an opinion, just as you just offered yours. I’d suggest that you lay off your steady diet of rhetoric and go read something factual. We’ve had two rounds of budget cuts happen without any addressing of revenues. At some point, kids like you need to actually learn a thing or two.
We got into this mess over the course of 40 years by cutting revenues and increasing spending. There’s no way to cut our way out of this as our economy depends on consumption spending. GDP doesn’t differentiate between private sector or public sector spending. Cut public sector spending without a corresponding increase in private sector spending, and you put us right back into recession. Based on what conservatives are whining about, it seems as though they care more about making Obama look bad to the detriment of the country as a whole.
The Boy Scouts teaches people how to find their way when lost. One of the methods is to backtrack your path. It’s gonna take 40 years to get out of the 40 year mess we’re in, and it will take a backtracking path to do it. That means we’ll need to cut spending AND increase revenues. If I were in Congress, we would have increased revenues 2 years ago as I would not have voted to extend Bush’s tax sale beyond it’s original expiration date.
palepadre
December 16th, 2012
11:28 am
Any “Safety Net” encourages Dependence. The problem with a Government “Safety Net” is that it is used to gain votes.It’s time to have benefits that taper off over time. Then make charities and families responsible for the needy. Where did the pride of helping family go?
Of course for families to be able to aid their members, is to buy less. Homes had at one time,one Color TV and one telephone. Children will not love you more,because you gave them ten presents instead of five!
rlm
December 16th, 2012
11:34 am
My social security payment just went up by 20.00 this does not cover the rise in gas prices for a year. I still work. We do have to cut spending. raising taxes on people over 250k by 1 % or even 2% will not hurt them substantially but poorer people it hurts alot. We still need to cut entitlements to save money not add to it. Since I work I do not pay for Medicare because I have insurance. I am saving the government money but working and paying for my own. Unfortunately many workers can not get a full time job, they can only get parttime as employers find two parttime employees with no benefits cheaper then one full time. We need to address this then the government will not have to supply insurance for people. Lastly we need the PWA to supply jobs not unemployment. Most out of work workers want a job not a hand out.
yep
December 16th, 2012
11:45 am
Every tax increase should be mirrored by a decrease in spending. I vote for the removal of the EITC redistribution policy that no one is talking about. Wanna see Obama squirm? Make his core constituents do without their redistribution money received every year at tax time. We are the land of the free, not land of the free money….
The Maestro
December 16th, 2012
11:53 am
“We’ve had two rounds of budget cuts happen without any addressing of revenues. At some point, kids like you need to actually learn a thing or two.”
Yeah, you believe this? If you look at the govenment’s expenses right now do you really think we’re spending less than before? Because when I use the term ‘budget cut’ I would expect that that would mean that less is being spent. Do you have the same understanding? If so, you need to rethink your supreme understanding of CNBC financial management.
honested
December 16th, 2012
11:58 am
Great, boehner is still attached to reality.
Now, let him wait until January 2, and he will have to accept reality.
Then he can accept the taxation of ALL TYPES OF INCOME at a top marginal rate of 39% for those earning over 250,000.00.
And if he behaves properly, he can add back the NECESSARY expenditures to the military industrial complex budget while waving goodbye to the wasteful excesses that have put us in this hole forever!
honested
December 16th, 2012
12:02 pm
It might even be possible that boehner and the House children will come to comprehend that Social Security and Medicare have NO PLACE in a discussion of the general budget.
If they want to solve the problems that will eventually befall one or both of those programs, eliminate the FICA cap (or at least raise it to 250,000.00), eliminate the prohibition for Medicare to shop the best price for Part D drug coverage, and quintuple the co-pays for all Medicare receipients with retirement income over 250,000.00.
But that solves the problem and does not pander to the misplaced ideology.
Brosephus™
December 16th, 2012
12:09 pm
Because when I use the term ‘budget cut’ I would expect that that would mean that less is being spent.
Are you a congressman or president? If not, your definition or meaning of the term “budget cut” is about as useful as a truckload of football bats for the Falcons. It doesn’t matter how you or I define what is or what is not a budget cut. That’s the job of Congress, correct?
How do you explain this??
How He Did It: Three Keys to Boehner’s Budget Victory
One week ago, John Boehner was dead meat. Facing a rebellion among his freshman members and with a government shutdown looming, Washington was preparing a professional obituary for the speaker of the House….
Yet today, Boehner’s clout in his caucus and as a negotiator have been enhanced.
He is the primary author of a compromise to keep the government operating for the rest of the year with the largest spending reduction in history – 63 percent of the original GOP request of $61 billion. Republicans also got a potpourri of sweeteners, like up-or-down votes on politically painful subjects like President Obama’s health care law and federal subsidies for Planned Parenthood, the nation’s largest abortion provider. Not too shabby for a guy who held only one of three seats at the negotiating table.
http://www.foxnews.com/politics/2011/04/09/did-keys-boehners-budget-victory/#ixzz2FEfmvBnI
liberalefty
December 16th, 2012
12:48 pm
why arent all these ‘producers” as they call themselves producing jobs for Americans?
liberalefty
December 16th, 2012
12:50 pm
the Community Organizer plays the repubs like Mozart and they hate him for his intellect and confidence in the face of their racist stupidity…
hazel
December 16th, 2012
12:54 pm
Great article from Fox:
Patience Pays
One of the reasons Obama did not get a bigger bounce out of his December deal to maintain the current tax rates for another two years is that he caved in too soon.
Eager to end the discussion about a looming tax increase for all Americans at the end of the year, Obama unhappily cut a deal with Republicans, who he compared to “hostage takers,” and then lashed out at liberals who were critical of the deal as “sanctimonious.” It was an ugly way to handle what should have been a happy occasion.
Read more: http://www.foxnews.com/politics/2011/04/09/did-keys-boehners-budget-victory/#ixzz2FEqynI88
liberalefty
December 16th, 2012
1:09 pm
the repubs only want to make Obama look weak and foolish like Dubya. That and legislating womens vagina seems to be all theyre about
capguitarman
December 16th, 2012
1:32 pm
If for no other reason, Ilike this because Boehner is talking about real “millionaires” and not using that word very loosely when discussing the “rich” — “rich” being couples making $250,000 + in Dem/Lib land, and sometimes referred to as millionaires by the Prez.
Since this kind of loose talk hits the Blue states the hardest, my sympathy is very limited, because those living in those states have never seen a tax they didn’t like, and never a problem of any kind that could not be solved by a new tax — e.g. the latest being a $100 tax on each and every bullet sold, in answer to the horrible tragedy in Newtown.
But a couple making $250,000 in New Jersey, or in New York, or in Los Angeles or San Francisco, or Washington DC is not “rich” — not by a long shot. And while Blue state residents fare somewhat better, when these red and blue “millionaires” (many of whom are small business owners who hire people) figure up their federal taxes, state taxes, real estate taxes, capital gains and dividend taxes, payroll taxes, etc. etc. it is a long time before any of their earnings goes into their pockets.
And keep in mind, all of this disingenuous Dem/Lib crap about the “rich” not paying “their fair share” is completely bogus. By far and away they pay the greatest share of the total tax bill today, higher than at any other time in our history.
And wonder why Obama is always harping on taxes going up on the top earners, but never seems to mention the increase on capital gains and dividend taxes coming in 2013 to help pay for Obamacare. Plus the new medical device taxes that will fall on everyone? And even worse, peddling the idea that we can tax our way out of trillion dollar deficits as far as the eye can see. America has a spending problem, and until we start to seriously deal with that (and the Dem/Libs are not dealing with it and obviously have no intention of dealing with it seriously) America will have a permanent economic limp.
Wilbur
December 16th, 2012
1:45 pm
The speaker offers a compromise and the President just says “no”.
This is not negotiation. Seems Obama thinks he is a dictator.
Cherokee
December 16th, 2012
2:05 pm
capguitarman, I always have to laugh when I read paragraphs like yours, especially about how the poor rich folks are paying sooo very much.
Your presidential candidate only paid 13% of his income in taxes – I pay a bigger percentage than that – likely you do too.
But folks like you keep carrying water for the Romnsys and Hiltons of the world; meanwhile they laugh at you from the safety of their gated communities and mansions.
Scrivener
December 16th, 2012
3:31 pm
Cherokee with his class warfare drivel again. He says: “Your presidential candidate only paid 13% of his income in taxes – I pay a bigger percentage than that – likely you do too.”
I think someone needs to learn the difference between investment income and ordinary income. People like Cherokee have been listening to the propaganda from folks like Obama and Warren Buffett a little too much.
Wilbur
December 16th, 2012
5:39 pm
All last year, the democrat loyalists like Jim were attacking the republicans for not being willing to take a “balanced approach” to fixing our deficit problem. Now we see the truth. It’s the democrats who want endless spending and endless government. When given the opportunity to have a balanced approach the dems refused.
Did Jim and his fellow travelers like Bookman know they were selling a lie? Of course they did. Did it matter to them? Of course not!
Cobbian
December 16th, 2012
6:51 pm
If tax cuts create jobs, where are they? We have been doing this since the country bought into the “trickle down” economics of Reagan. We should have all the jobs imaginable by now and we should have a robust middle class. We don’t. What we have is a larger percent of income going to the top guys, a middle class that has declined, and a lower class that is decimated. Why should we keep doing something that doesn’t work?
Attack Dog
December 16th, 2012
7:05 pm
The Liberals offered the millionaire deal a year ago when Boehner was scared of the Tea Party. Say what you want, but Pelosi is what a speaker looks like.
Attack Dog
December 16th, 2012
7:09 pm
The reason that the Confederacy lost the war is because the plutocrats refused to pay for the war, while brainwashing Dixiecrats ( Dixiecans). Some things haven’t changed.
The Maestro
December 16th, 2012
7:25 pm
“………but Pelosi is what a speaker looks like.”
The same Pelosi that made the most idiotic statement in the history of politics: “We have to pass the bill before we can know what is in it.” Were you not amazed when you heard this come out of her mouth?
JMH
December 16th, 2012
8:31 pm
Cobbian- What was the unemployment rate for the majority of the Bush years? I guess 5% unemployment was bad?
Also, explain to me how raising taxes on anyone is going to create more jobs? So the govt brings in more tax revenue; how does that incent me as a small business owner to hire more workers? You just don’t know what your talking about.