No one retreating; cliff talks seem at standstill
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President Barack Obama greets well-wishers after stepping off Air Force One upon his arrival at Metropolitan Wayne County Airport in Detroit, Monday, Dec. 10, 2012, before going to the Daimler Detroit Diesel plant in Redford, Mich.
WASHINGTON — A year-end deadline approaching, negotiations to avoid an economy-rattling "fiscal cliff" appeared at a standstill Monday. Republicans pressed President Barack Obama to name specific spending cuts he will support, while the White House insisted the GOP agree explicitly to raise tax rates on upper incomes.
At a campaign-style event in Michigan, Obama warned his listeners their taxes will rise on Jan. 1 without action by the Congress. "That's a hit you can't afford to take," he declared.
He spoke one day after meeting privately at the White House with House Speaker John Boehner, whose office expressed frustration with the talks to date.
"We continue to wait for the president to identify the spending cuts he's willing to make as part of the 'balanced' approach he promised the American people,'" said a written statement from the Ohio Republican's office.
The negotiations are designed to prevent across-the-board tax increases and spending cuts scheduled to begin at the turn of the year, a combination that economists say poses the threat of a new recession.
While leaders in both parties say they are eager to avoid that "cliff," negotiations on a plan to cut deficits by other measures have turned into a major postelection showdown between opposing sides in a divided government.
Many Republicans agree that Obama and the Democrats hold most of the political leverage, given the president's re-election more than a month ago after a campaign in which he said the wealthy should pay more in taxes.
If anything, the president has toughened his demands in recent days, insisting not only that tax rates must rise, but also that Congress give him and future presidents the authority to raise the government's borrowing limit without prior approval by lawmakers.
Boehner, while claiming his own election mandate for the Republican majority in the House, said within a few days of the voting he was prepared to buck many in his party and support additional tax revenue as part of a fiscal cliff agreement.
The Ohio Republican has said repeatedly he opposes Obama's plan to raise tax rates for anyone, adding that he prefers to raise revenue by closing loopholes. Yet he has not yet ruled out giving the president his way, and some Republicans have said they are prepared to do so — encouraging Democrats to say they anticipate the speaker will eventually yield on the point.
White House Press Secretary Jay Carney told reporters as Obama went to Michigan that "the president believes that a deal is possible. It requires acceptance and acknowledgement in a concrete way by Republicans that the top 2 percent will see an increase in their rates."
In his remarks at the Daimler Detroit Diesel Plant, Obama said the Democrats would "make some tough spending cuts on things that we don't need" as part of his budget plans, although he didn't mention any of them by name.
Republicans have increasingly expressed frustration in recent days as they accuse Obama and the Democrats of failing to talk in specifics when it comes to spending cuts that many of their constituencies are likely to balk at.
In talks that ended in failure 18 months ago, according to aides in both political parties, Obama had tentatively agreed to a proposal to raise the age of Medicare eligibility from 65 to 67 beginning in a decade, and had also said he would accept a change to slow the annual cost-of-living increases that go to recipients of Social Security and other federal benefits.
This time, the two sides have advanced opening proposals that are short of specifics and reflect different priorities.
Obama's plan would raise $1.6 trillion in revenue over 10 years, in part by raising tax rates on incomes over $200,000 for individuals and $250,000 for couples.
He has recommended $400 billion in spending cuts over a decade.
He also is seeking extension of the Social Security payroll tax cut due to expire on Jan. 1, a continuation in long-term unemployment benefits and steps to help hard-pressed homeowners and doctors who treat Medicate patients.
Boehner's plan, in addition to calling for $800 billion in new revenue, envisions $600 billion in savings over a decade from Medicare, Medicaid and other government health programs as well as $300 billion from other benefit programs and another $300 billion from other domestic programs.
It would trim annual increases in Social Security payments to beneficiaries, and it calls for gradually raising the eligibility age for Medicare from 65 to 67, beginning in a decade.
AP White House Correspondent Ben Feller contributed from Redford, Mich.
Dec 11, 2012 at 2:57 p.m.
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Eagle1: I agree
Dec 11, 2012 at 7:45 a.m.
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Don't care anymore go over the cliff I am over the political BS these two parties have created for their own benefit.
Dec 11, 2012 at 5:23 a.m.
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Another green energy company -A123 into Benghazi Barry bailed bankruptcy. Selling that and America to China.
No spending reforms, just keep sending in those tax dollars. No balanced budget and no balanced approach.
Never before have I seen a bigger joke in charge of anything.
Dec 10, 2012 at 11:38 p.m.
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So how you all like your politicians now. You know what someone should tell the President to wipe that smile off his face for screwing us over again. once again the Democrats and Republicans are going to screw us because I doubt this will be done by the deadline because both sides are ******** who don't care abut the people they represent and the poor and middle class will take it up the *** again.
Dec 10, 2012 at 11:30 p.m.
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When is the left going to grasp raising tax rates in no way means more money will be collected by the feds, http://taxprof.typepad.com/taxprof_blog/...
The "evil rich", the same ones the left want their base to hate based on class warfare alinsky style politics, have the ability to move themselves and their money. Look at the history of rich dems like Buffett, he claims he wants higher taxes, but has worked his whole financial strategy around avoiding them. The rich have fled California and New York as tax rates went up. To think they won't leave the county is naive as well; just look what has happened in France and the UK after rates jumped.
The govt is funded based on what the economy can provide, as such, spending should also be tied to that. When the govt has spent OVER what has been collected, like it has for the last +60 years, only the IGNORANT can claim spending is not the problem.
The fix is easy, only the politics make it hard. Remove all tax deductions and credits, then get rid of the IRS. A simple flat tax on everything while holding spending to receipt levels and the problem goes away.
Dec 10, 2012 at 10:03 p.m.
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For 100K dollars, and a Hawaiian trip to boot, I would pick up after BO.
Dec 10, 2012 at 9:11 p.m.
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Sounds like the ideal volunteer opportunity for you; one that can save taxpayers tens of thousands of dollars. Just don't tie the dog to the roof of your car, please.
Dec 10, 2012 at 7:37 p.m.
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Obama needs to work on the debt crisis we have, and not head off on vacation...again.
On top of the horrendous cost to the taxpayers for the Hawaiian getaway, is the cost of the dog, BO. Am I the only one who thinks it is outrageous to pay 100 Thousand Dollars for a person to go along to take care of the dog, and pick up dog poop?
Dec 10, 2012 at 7:28 p.m.
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yada
The article is about Obama, and whether or not I work, is NONE of your business. YOU are not supporting me.
Dec 10, 2012 at 7:09 p.m.
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It's been widely reported that the Obama tax increases are just enough to fund a little over a weeks worth of Federal spending. Adding in the entitlement spending that Obama demanded with his proposal and that number is already reduced. Trillion dollar deficits are still the norm with an ever spiraling upward national debt. While the tax increases will definitely provide a "feel good" moment for the libs, their effect on the country's fiscal mess is meaningless. The laughable idea that came out of the proposal was that the tax increases would be implemented immediately where as the spending cuts to the hemorrhaging entitlement programs would be dealt with "later"! Huh?!?!? If anyone in the government even remotely cared about the long term viability of the country they would stand their ground and tell all others to pound sand. Let all of the Bush/Obama tax reductions expire and force the government into immediate spending cuts. The kicking the can down the road has to stop........
One senator had it right back in 2006 when he said:
"The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better"
Unfortunately that politician seems to have lost his way.......
Dec 10, 2012 at 7:03 p.m.
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redder, your scenario is tainted with simplistic inaccuracies from start to finish. To start, you said, "first a freeze on goverment spending happens that nobody can change"
Do you honestly believe nobody can change a freeze on government spending? You surely must not have been paying attention to Congress for the last 50 years.
To finish, you said, "and Obama becomes a lame duck."
Obama will become a lame duck, but not for another 4 years. Back to the drawing board.
Dec 10, 2012 at 6:46 p.m.
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So...what happens if we fall over the cliff.....hmmm....lets see, first a freeze on goverment spending happens that nobody can change...causing thousands upon thousands to loose their income. (that sounds nice) however it does decrease spending instantly...tax credits for the middle class go away....now we gain in revenue to the system however we have lost all those jobs remember and we have cut spending...so its a surge but not one thats sustainable....then after the 1st the republicans come in and make a deal...now mind you spending is now forced...they give the 2% but tell the Dems that the spending cuts stay. Obama is now back in deep tripple digit unemployment and goes down as a Carter wanna be...the republicans look decent and get an I told you so after they put the middle class tax cuts back and raise the wealthy by 2% as an appeasement, now being credited for spending cuts, raised taxes for the rich and lower for the middle classs.....same deal thats on the table now basically, THAT OBAMA WON"T SIGN....why would the republicans do anything else...sure its going to piss off people for a month on this years tax returns...but they will have saved the day after that...and Obama becomes a lame duck. Why not just show some leadership and make it right...NOW...not the inevidable later
Dec 10, 2012 at 6:15 p.m.
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Someone should take away the credit cards, cut them up, and send them back to china.
Dec 10, 2012 at 6:13 p.m.
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WISLADY - First to comment for just about every single story. Do you have a job? Good news for you though - Gov Scotty & wife are seeking private donations for the half million dollar kitchen renovation. Thought someone that is so caring like you would want to donate to such a worthy cause. That is unless you have already pledged lots of money for the Walker John Doe Defense Fund.
http://www.walkerinvestigation.com/
Dec 10, 2012 at 6:02 p.m.
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Indubitably.
Dec 10, 2012 at 5:56 p.m.
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No, but I did teach my dog once to give me a high five when I mentioned my football team and to lay down when I mentioned the packers. I'm sure I could handle the job...
Dec 10, 2012 at 5:50 p.m.
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But, tthompson, have you ever tried training a congressman on how to use a tin can?
Dec 10, 2012 at 5:47 p.m.
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'If potus wants to talk with the republicans, why isn't he in DC?'
I assume the gov't has technology way beyond us and I'm confident that technology has provided cords long enough to connect the cans.
Dec 10, 2012 at 5:28 p.m.
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Because Republicans are in warmer climates entertaining campaign donors.
Dec 10, 2012 at 5:15 p.m.
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If potus wants to talk with the republicans, why isn't he in DC?
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