Obama offers fiscal cliff tax concession
Source: CNN
(Financial Times) -- US President Barack Obama offered to back away from his position that tax hikes should begin at $250,000 in annual income, delivering a fresh concession to congressional Republicans as talks to avert the fiscal cliff intensified in Washington.
The White House proposal would leave lower tax rates in place for everyone except those earning $400,000 or more a year. Republican leaders had asked for a higher limit but the offer suggests there is a narrowing in the gap between the two sides.
A person familiar with the talks also said Mr Obama was no longer seeking a permanent mechanism to increase the US debt limit, but would settle for a two-year increase in America's borrowing authority. In a further concession to Republicans, Mr Obama agreed to apply a less generous measure of inflation to government calculation, which would result in lower benefits in the Social Security pension scheme over time, the person added.
The White House plan came as the shape of a deal to avert the US fiscal cliff -- which would entail a mix of $600bn in spending cuts and tax increases next year -- was at last emerging, with at least $1tn in new taxes, up to $1tn in fresh spending cuts and an increase in America's debt ceiling. Negotiators are scrambling to reach an agreement before the end-of-the-year deadline.
Read more: http://www.cnn.com/2012/12/18/business/obama-fiscal-cliff-concession/
Indydem
(2,642 posts)Keep up the great work!
Cosmocat
(14,573 posts)I like Barrack Obama A LOT.
But, this is the one area that I don't like him so much.
He WILL bend too far their direction.
It would be bruising, it would be tough, but the right thing would be.
1) Let the tax cuts expire, for congress to bring a bill back early next year returning the rates to the 98% and saying flat out he won't sign a bill different from that.
2) Let the sequestration hit and force congress to come up with something else if it wants different.
3) DO NOT INVOLVE SS or Medicare in this discussion, it is not even remotely tied to current trumped up "crisis." Force an open discussion focusing on these items standing alone. If Rs want them changed, force them to tell the country what they want to do and let them feel the pain for it if it happens.
The leverage is 85% with the president and democrats now and moving forward in the near future. All he is doing is settling for worse AND letting them off the hook for owning the insane BS they are driving
John2
(2,730 posts)his true colors. He dumped Reverand Wright under pressure. His buffoon in Chicago went against the Teachers, and Obama didn't say a word. Palestinians call him indifferent towards the lives of Palestinian kids. He is reneging on Afghanistan, He is doing regime changing. He claimed Romney had good ideas. He claims he is really a Republican. I'm beginning to see a character flaw and a serious one. And any Democrat, that said Social Security was off the table and caves reflects the same flaws. It this not the end of the World if this country goes off the Cliff for a short while. The people that are really suffering are use to it and have more backbone than some of these Democrats willing to cave in to this. And it should be they, not them if they go along with Obama. There needs to be some real Democrats in office instead of these lifelong Fortune seekers. I see Blanche Lincoln can't stay away from the public eye! Some other Democrats need to join her.
grammiepammie
(59 posts)It is called compromise. I myself thought $250,000 was too low. I am pleased that it starts at $400,000. If you are residents of New York City, Boston, Chicago, etc., and you are both working, $250,000 does not make you rich. You should know by now that this man knows what he is doing, so please do not start bashing and name calling. Let's see what the final outcome is.
abelenkpe
(9,933 posts)I live in LA and 250,000 doesn't make you rich but you can afford to pay more in taxes so that SS doesn't get cut f- ing over future generations and seniors. There is no reason to pursue austerity measures at all and in fact economists do not recommend that route. But millionaires and wall street do. Who's side are you on?
SWTORFanatic
(385 posts)So someone earning $250,000 would not see an extra dime in taxes...
Someone earning $300,000 would only pay 2% more than they already pay on the $50,000 between 250k and 300k.
So someone $300k would pay 2% extra on 1/6 of their income. *makes wank motion*
Liberalynn
(7,549 posts)Last edited Tue Dec 18, 2012, 04:06 PM - Edit history (1)
You cannot afford A CHOP to the cost of living increases plus whatever CHOPS get made-to Medicare/Medicaid because they will be coming too, and we all know that once the PuKes get one concession they will demand more, and Obama will be more than happy to accomodate them.
But people supporting this plan and the President don't care about people in this situation apparently. So someone earning 250 grand a year won't be able to make that summer trip to the Grand Canyon, well someone on SS/Medicare might not be able to eat or afford their medicine.
But apparently the Grand Canyon trips are more important.
ETA -Apologize for all edits, and think I was reply to wrong person. Meant to reply to Grammie. Sorry.
RKP5637
(67,112 posts)Liberalynn
(7,549 posts)they need to raise caps and raise benefits. Exactly the opposite of what they are doing.
I was kind of disheartned today by Bill Press saying he doesn't know if this can be taken back and Politico saying they doubt all the objections from Advocacy groups will make a difference.
I sure hope they are wrong. I plan to keep letting them know. I keep calling but wonder if they are going to start dismissing my calls because I have called more than once on the same issue.
Oh well its not like the probably listen anyway but I am going to keep calling and protesting?
RKP5637
(67,112 posts)does any good. We've become a society where going after the most vulnerable is where they go first for cuts. And that's because money talks and those with lots of $$$$$ will go after them, cut/swing contributions and all, but the rest of us don't have the $$$$$ so we get dumped on in USA, Incorporated.
dixiegrrrrl
(60,010 posts)My Soc. Sec. check will see a grand 16.00 a month increase
because the Medicare B premiums went up by 10.00 a month, plus the deductible has gone up by 7.00.
gov't has already made inflation measurements totally unrealistic, and inflation is eating away the last few pennies of the value of the dollar.
RKP5637
(67,112 posts)was high priced stuff. I also think they jacked the prices up some 'cause of the holidays.
Nihil
(13,508 posts)> You should know by now that this man knows what he is doing
That's the problem: most people *do* know by now that this man knows
what he is doing ... the problem is that he isn't doing Democratic things,
just Republican ones.
> I myself thought $250,000 was too low. I am pleased that it starts at $400,000.
> ... $250,000 does not make you rich.
No but $250,000 does mean that you should start paying a damn sight more tax than
you currently do.
John2
(2,730 posts)a response to let you know where I'm coming from. I'm a military veteran, which Mr Obama claims that he is so dedicated to. I spent years in the military with promises from the U.S. Government that my service would provide certain benefits. I came under the promises of the Old Vietnam veteran's GI Bill. The U.S. Congress reneged on those benefits because of the claims about it was too costly. That was during the Reagan years, so they altered it and made serving less attractive. Not only that, I got a disability in service and they reneged on that. The U.S. Government which is Congress, including the President reneged on that promise.
The excuse they used was the deficit. They made it harder with regulations ( red tape) to get those benefits. Not only this, I saw them deduct money from Social Security and medicare out of my military pay for years. That was my military pay. When I worked a Civilian job, they took out Social Security and Medicare again, out of my pay. I didn't complain. So Boehner and Obama are calling this entitlements? I call them earned benefits for my retirement. And I'm a Baby boomer.
I see this as an agreed contract also between different parties. When one party breaks the contract, in legal terms, it is called (Default) breaking the contract. One portion of the Debt is what they owe to Social Security. So I take the position, if some Congress and President comes along and break it, then that is an offense done to me.
The President did not run to cut anything nor did the Republican Party. Congress needs to find a way to pay their Bills somewhere else. It is that simple with me!
olddad56
(5,732 posts)RKP5637
(67,112 posts)plethoro
(594 posts)the Republican Party for 2014. Can you imagine the Republican adds after two years of a chained CPI? "Wasn't us that caused Grandpa to be eating cat food for dinner. It was Obama". I knew what was going to happen when he cut the payroll tax deduction. What will he give to Boehner next? Yes, he does know what he is doing. He is carrying out the wishes of the Inverse Fascists that now run this country. I just hope my family and I are gone by the time we resemble Beirut.
RKP5637
(67,112 posts)2014 and likely the presidency in 2016. They will drive that forward, right or wrong, until it become factual in the minds of voters. "Obama took away your SS."
i have been watching this with funnel vision,if he concedes to the republicans i will stay home and never vote again.
1StrongBlackMan
(31,849 posts)Think wayyyy back to 2010. Think what a different world we'd be enjoying had Democrats NOT adopted you strategy!
Hydra
(14,459 posts)The people Obama promised hope to(First time voters and independents) didn't vote the second time.
Why? Because the President decided in his infinite wisdom to become exactly what he campaigned against- the same old ideas, the same direction.
Frankly, the world would have been exactly the same had we swept the house and the Senate...because this is the world the Democratic Leadership wanted. Cool, huh?
1StrongBlackMan
(31,849 posts)the people that didn't vote in 2010 were first time voters and independaents, that tend not to vote in off years and people that wanted to "teach the Democrats a lesson."
False narrative.
False Narrative.
Hydra
(14,459 posts)Last edited Tue Dec 18, 2012, 06:22 PM - Edit history (1)
The young new voter block gave the President a HUGE advantage in 2008. They were roundly disillusioned when it was business as usual in Washington DC again, and the economy wasn't improving. They may never vote again due to the message the President sent out- "The audacity of hope"
It was indeed audacious, apparently.
And tell me what policies we got that hadn't been crafted by Wall St. or the Heritage Foundation? Patraus, Geitner and Duncan were stellar picks, don't you think?
donnasgirl
(656 posts)Are independent voters strongblackman,i am tired of being lied to by politicians of any party in this election i put all my eggs in one basket(DEMOCRATS) no one will lie to me again i have had enough of their lies and so has many other independents.
donnasgirl
(656 posts)About 2010 strongblackman,if i have to keep voting for people who lie why not stay home.
1StrongBlackMan
(31,849 posts)First, no one has lied! A campaign promise is a goal that is to be worked towards. But as with, everything in life, circumstance, and in this case, governance, often interferes with one's ability accomplish all or some of that goal/promise.
And secondly, because you know what the alternative is. Would you rather have someone in governance that accomplishes something, in the right direction; or someone that accomplsihes anything in the wrong direction?
earthside
(6,960 posts)The Democrats got rolled in the 2010 Tea Party wave because Pres. Obama demoralized his base.
He 'surged' in Afghanistan.
He sold-out the public plan option in health insurance reform.
He never prosecuted a single Wall Street crook.
He caved on the Bush tax cuts in December 2009.
Democrats stayed home because the Obama administration did not give them a good reason to get out and vote -- I absolutely do not buy this notion of blaming the Democratic base for the losses of 2010 -- there were solid political reason why Democrats lost.
All the screaming and yelling from Democrats and liberals right now over the reported direction of these 'fiscal cliff' negotiations are an effort to stop Barack Obama from making the same mistake he made before.
joshdawg
(2,651 posts)SS, Medicare, and Medicaid should not be on the table at all.
If the right-wingers want cuts, let them specify what and where those cuts are to be made.......but, they won't say. They have no plan, just an irrational thirst for power.
Cosmocat
(14,573 posts)no only does he settle for worse than he should, they WILL jump all over his head.
The "deal" he will get won't have the majority of the republican caucus vote for it.
It will take all the democrats in the house and a bare minimum of Rs to get it past.
Boehner will not say anything really at first, then over time as the lunatics in the House jump all over the President will chime in.
And, if the debt ceiling aspect is a handshake, they WILL renege.
They will MAYBE get their shit together to do some kind of immigration reform because they think they need to in order to scam hispanic votes.
But, past that, this House will do NOTHING, N O T H I N G with this President the next two years. NOTHING, except maybe try to impeach him.
Liberalynn
(7,549 posts)bowens43
(16,064 posts)fucking disgusting, watch for to offer up medicare and social security soon.
the man has absolutely no backbone. To get what is needed, all he has to do is nothing. Instead , as he always did t i9n the past, he caves.
blkmusclmachine
(16,149 posts)John2
(2,730 posts)I have a Democratic representative in Congress and a Democratic Senator. And anybody that don't agree with this crap, should tell their representative. I know the Unions are already on to this. I don't care about any fiscal cliff in the short term. This guy that we elected to president needs to start talking about removing his butt from Afghanistan and everywhereelse. I'm African American too and will no longer tolerate this Bullshit! I'm definately one of his voters. They need to stop their dam war on the middle class and the poor!
CrispyQ
(36,518 posts)Then below that I have a 'journal' of the text that I've sent to them. I try to write at least twice a week. It takes me about 20 minutes to compose a few paragraphs about an issue & then send it to each congressperson.
People need to write to Congress! If we would flood their email/fax/phone lines . . . but we don't do that. Also, the biggest voting segment is the non-voters. How many of them do you think call/write to their reps?
I'm currently wearing a Democratic Underground tee shirt that reads:
Democracy Isn't Free
You Have to Pay Attention
The Wielding Truth
(11,415 posts)durablend
(7,465 posts)"Today..."
"Can't promise tomorrow though!"
joshdawg
(2,651 posts)heh!
John2
(2,730 posts)He has nothing to concede period! All the taxes go up after January! Social Security,Medicare and Medicaid are not in the Sequestration Cuts period!
Billions of Dollars are in Military Cuts, which is a Republican cash cow! unemployment benefits are in the cuts,EPA cuts, cuts to the Arts, and cuts to Scientific research such as programs like NASA.
That is the sequestration cuts. Boehner and his Republican thugs were threatening to cut those anyway but they left out the important programs like Social Security, Medicare and Medicaid. The Democrats got a Big Republican cash cow, and I would argue more too. The Military side is a huge Republican give away. That is why the Weekly Standard wants a Deal on taxes.
He can leave it as is and get concessions from Boehner all day long. There is no way the Republicans will cut the military. That is a huge bargaining chip period. And as far as their National Security Bull shit, that is phony as shit. The United States is the Top Nuclear power in the World! their might be a few Terrorists try to enter the country but no country in their right mind would invade the United States. The only National Security problems those phonies in congress have is protecting their overseas empire and increasing their influence in other countries. Romney asked Obama about his own investments in China was revealing. They need those weapons to conduct their Wars. This is why I like going off the Cliff better. Screw Wall Street and those World markets too. Give me a Break, We own China's Debt too. Just write it off as even. That is why I don't give a dam!
The Wielding Truth
(11,415 posts)Warren Stupidity
(48,181 posts)djean111
(14,255 posts)jsr
(7,712 posts)You wouldn't dare to haggle with him at a flea market.
jerseyjack
(1,361 posts)Yesterday, Social Security.
Today --- Oh well, $250,000 off the table.
blkmusclmachine
(16,149 posts)He has the GOP right where he wants them: IN COMPLETE CONTROL
BlueJazz
(25,348 posts)...having a free ride for decades and NOW it's time to pay up.
We regular "little people" have had it rough for the same length of time while the wealthy have enjoyed a spending spree at our expense.
All we ask is the scales to be balanced once again but Noooo...heaven forbid that little Poosies graduation present is not a $50,000 automobile but maybe a $35,000 car.
I've known lots of rich folks (through my Father) and they have one thing in common.>> Greed, whining and excuses why they can't part with any of their millions.
90% of them are selfish assholes and you have to FORCE them to "give it up".
Lawlbringer
(550 posts)Even if this is just a good faith concession in hopes the other side will do the same, he may have simply forgotten exactly who he was dealing with.
Or he's so naive that he really thinks they'll extend him the same courtesy.
bucolic_frolic
(43,295 posts)once it reaches the House both sides will refuse to vote for it.
fasttense
(17,301 posts)That chain-CPI is code for cutting benefits. All it does is shrinking COLA and shrink what the elderly would normally receive, causing more and more elderly to fall bellow the poverty line. Pretending Chain-CPI is just a better way of figuring COLA increases. What a scam.
Obama is the best RepubliCON President we have ever had. Just ask him, he'll tell you.
Austerity for the poor. Obama must be in seventh heaven over this caving into teabagger wants.
liberal N proud
(60,346 posts)SHRED
(28,136 posts)I'd say I am shocked...but I'd be lying.
--
Shadowflash
(1,536 posts)Why deal?
On January 1st the tax rates will go up on everybody and then the Democrats will introduce a bill lowering taxes on 98% of the country retroactive to the beginning of the year. No dealing, or concessions, needed.
Why give in? Especially when the Democrats hold all the cards and have no need to deal.
joshdawg
(2,651 posts)Let the tax cuts simply expire. Simple solution.
The President does not need to deal with crooks who don't "deal" honestly.
It goes without saying that boner and his ilk are con-men.
Owl
(3,644 posts)RC
(25,592 posts)Next go-round, we need to make sure we primary out any stealth Republicans the 3rd way try to run. We need someone at least around the real political center, as President. Or better yet, on the Left side.
John2
(2,730 posts)that goes along with him should be primaried, including mine in this District. Even though they don't own the House, they own the Senate. Obama can't pass anything without Democratic help.
Doctor_J
(36,392 posts)can we stop the "best president ever" bs now?
WorseBeforeBetter
(11,441 posts)Jakes Progress
(11,122 posts)blkmusclmachine
(16,149 posts)How does Obama lean? ALWAYS Republican.
grahamhgreen
(15,741 posts)kath
(10,565 posts)process (oops, I guess that's part of NDAA, but it's worth repeating 'cuz it's so egregious), torture, letting Bushco war criminals go free (which, BTW, violates the Geneva Convention), etc.
(For a summary of the ways in which BO has continued (and in some cases even accelerated) the shredding of the Constitution begun under W, see here: http://truth-out.org/opinion/item/11264-john-cusack-and-jonathan-turley-on-obamas-constitution )
Oh, and then there's the Health Insurance Companies Protection Act.
forestpath
(3,102 posts)blackspade
(10,056 posts)Now he helps them up?
WTH?!
This is the king of shit that drives me nuts.
This is not concessions, this is capitulation.
sky imager
(36 posts)Why concede anything to the crying Boner?
MessiahRp
(5,405 posts)So much for that. Making concessions seems pointless when they are not negotiating in good faith. :-/
liberalmuse
(18,672 posts)You know damn well the Republicans are going to reject this. This is reasonable (well, to those who've been whining that $250k will hurt small business and the "middle class" , and everyone will know it. $400k isn't "middle class". It's wealthy. I'm dying to hear Boehner's explanation on why he'll reject the President's offer.
John2
(2,730 posts)came up to the Podium, with Eric Cantor and says We will put a Bill through lowering taxes on everybody with income under one million dollars. He will continue to get tax cuts for everybody though. Boehner and Cantor are not compromising, he is just nipping and nipping away to see how much Obama will cave. He is getting as much as he can. The people getting screwed are the middle class and poor. I hope the truth doesn't hurt any body's feelings. And I convinced some people to vote for this!
DJ13
(23,671 posts)Why should they when Obama has a well established pattern of giving in whenever the GOP holds firm?
Stay put and Obama will give them everything they want.
COLGATE4
(14,732 posts)link to Huffington which says that part of Obama's proposal is to allow the payroll tax deduction for Middle Class to end and to decrease benefits in Medicare and Social Security. Looks like a great 'victory' to me.
Owl
(3,644 posts)$400K is unnecessary capitulation, and for what?
grahamhgreen
(15,741 posts)which of course, does not add one nickel to the deficit!!!
No deal is the best deal we'll get from this guy.
MjolnirTime
(1,800 posts)grahamhgreen
(15,741 posts)not part of the math.
newfie11
(8,159 posts)1StrongBlackMan
(31,849 posts)I heard the exact same narrative this morning on rightwing radio this morning (The Garrett Lewis Show).
That President Obama is using Newton to sneak chain CPI past Democrats and to initiate a gun grab.
grahamhgreen
(15,741 posts)SS does not add one nickel to the deficit!
Why did he put it on the table - and why now???
Let me repeat - SS is not part of the MATH.
PS - I voted for the guy and donated $ to his campaign.
1StrongBlackMan
(31,849 posts)It is merely stating that I heard that exact same narrative on a rightwing radio show.
Face it ...
But it IS a part ... a major part ... of the governance math. Do you agree?
PSPS
(13,614 posts)As we learned in 2010, disillusioned Obama supporters stay home for mid-term elections.
TrevEB
(18 posts)No I suppose it doesn't but it would go a long way to making me comfortable in one of the most expensive areas to live.
Combined income in my household is under 200K, and that is when we were both employed which is no longer the case.
Both with professional degrees, living in the best part of Oakland and working in San Francisco.
250k is NOT to low. Its just right.
We were getting by before Bush's tax cuts with a lot less.
250K is the compromise.
The Bush tax cuts expired in 2010.
We all got another 2 years of compromise.
For that, we added another 3 Trillion to the debt.
Enough!
Cant' manage it do it? then off the cliff already.
wordpix
(18,652 posts)so I am living in her spare room in a tiny apt. If I had an income of $250K I could easily afford to buy a very nice condo here. But I don't, so my good samaritan action of helping mom puts me in her spare room.
Fearless
(18,421 posts)People with LESS money should be expected to pay more? Mr. President if you do this, you are a traitor to the Democratic Party and to middle class America.
Liberalynn
(7,549 posts)wordpix
(18,652 posts)in Jan. Besides, $250K should be the cut off at "wealthy" who must pay more.
alarimer
(16,245 posts)Cutting SS when he said he wouldn't.
It's not compromise; it's capitulation.
Hotler
(11,445 posts)He had no spine, no fight in his first term did you think he would find some now??? He let Bush/Cheney and crew go free "Now is not the time to point fingers.". He let the crooks on Wall St. go free "Wall St. did nothing illegal.". Single payer health care didn't even have a chance. Dick Cheney had no problem telling democrats to fuck themselves. I wish he had the balls to tell Boner to go fuck him self.
olddad56
(5,732 posts)treestar
(82,383 posts)That is the only thing to say to this.
Doctor_J
(36,392 posts)the party will be pretty much dead.
RKP5637
(67,112 posts)republican friend dropped by today, said he voted for Obama, because he is concerned about the future of SS and Medicare. ... but, if SS gets cut I know this guy will be voting R next time around, he'll see no difference, and there are a lot of people like him here.
Doctor_J
(36,392 posts)One of the campaign's underlying issues was, "The Repukes are going to cut SS - better vote for us so that doesn't happen". It made a lot of seniors and others like your friend take notice. That is now gone, so there will be a landslide.
I am wondering if the president didn't have this all planned - to have a Repuke Congress, enabling him to ram though the right-wing agenda he was hired to implement. He didn't campaign for any congressional Dems. I guess having too many Graysons and Sanders around would have impeded his Reagan agenda.
RKP5637
(67,112 posts)he was hired to implement." Actions sure speak louder than words. As I always tell people, if one thinks these guys don't talk about a lot of stuff behind the scenes one is really naive. When you reach the level of wealth and power these guys all have, IMO, there is a lot of cross over between R's and D's.
treestar
(82,383 posts)Because they want to, not because they have to in order to reach an agreement. Republicans don't care what happens at all.
Doctor_J
(36,392 posts)let the automatic ones kick in (with the huge expiration of the Bush/Obama tax cuts), then bring up a separate bill next session with social program cuts, and let them go on the record.