Boehner Puts Forward Fiscal Cliff Counter Offer

Tuesday, December 04, 2012

On behalf of the House Republicans, Majority Leader John Boehner has offered a $2.2 trillion plan to avoid the fiscal cliff. The Republican offer calls for $1.4 trillion in spending cuts and $800 billion in new revenue, from savings on Medicare and Medicaid and closing additional loopholes.

President Obama and the Democrats are looking to cut $600 billion in spending, with $1.6 trillion in tax increases, primarily through increasing taxes on Americans earning more than $250,000 per year.  

Takeaway Washington correspondent Todd Zwillich explains the latest on the fiscal cliff negotiations, and Diane Lim, chief economist at the Concord Coalition, analyzes the economic details.


Diane Lim and Todd Zwillich

Produced by:

Jillian Weinberger

Comments [7]

commentor from charlotte NC

You're the one who is partisan. This is ridiculous.
Bush ran up bills. He set the deficit(spending) already in place before leaving office. The President could not re-engineer an economy while in free fall. There is a reason he was re-elected. The voters felt that yes it is time for the Tax rates to see a correction for the rich define it as you please but taking Clinton era investment tax rates and dropping them without equal cuts in expenditures was ridiculous and spineless and put us in the debt mess we are in. The historic increase in wealth at the top smacks of pre-depression era and the rich are so deluded they will eat their own arm. It is the broad consumer spending base of the middle class that drives the economy not some pathetic trickle down model. Innovation and Training are the backbone. If there is money to be made investment will come. Reset the tax rates on the rich to a healthy relatively equitable rate as with to the middle class. Make the adjustments around the edges and tighten enforcement of eligibility for support programs to withstand the bulge of the boom generation and everything will settle out.
Infrastructure projects are the way to right the jobs market until the economy picks up momentum.

Dec. 05 2012 11:58 AM
Ed from Larchmont

President Obama probably wouldn't mind going over the fiscal cliff: he gets to raise taxes and get more income for programs; he gets to cut the military budget more than otherwise possible; he gets to blame the Republicans. So he can demand what he wants. He requested $800 billion in tax revenue, when the Republicans supplied it, he requested $1600 billion.

Dec. 05 2012 05:38 AM
Larry Fisher from Brooklyn, N.Y.

whenever I listen to an economic segment that is difficult to follow and I listen to with a dictionary, I know I'm going to get screwed somehow "down the road"

"Kick the can down the road"...kick the can is a euphemism for dying, that I understand.

Dec. 04 2012 10:45 PM

Higher taxes for the wealthy is a dumb and transparent political gimmick which is like throwing bricks into the Grand Canyon. This administration is in a fit of hubris fueled by the media. much is the Presidential Hawaiian vacation costing the tax payer as the economy beings its collapse?
Our vigilant media will no doubt be all over that story concerning public money as they were about Romney's private money.

Dec. 04 2012 10:15 AM

"The math does not work if you don't include base broadening efforts" said Ms. Lim, the Economist. This election was won by the President and Democrats because he made the point clearly to the American people that the Republican experiment with our economy of the last 10-30 years has failed us. The majority of Americans recognize this. The "job creators" aren't creating jobs under the Republican model. Americans have realized that the reason that Government spending has mushroomed is because The Great Recession, caused by Republican policies, has forced more Americans to rely on the Social Safety net. If Obama wins on every point of these current negotiations, including control of the Debt ceiling so that Republicans can't hold the economy hostage, it would only be the beginning of the process to repair the damage that the Republican economic experiment has done over the past 30 years.

Dec. 04 2012 09:36 AM
david lightstone

As I recall during the height of the Viet Nam war the Government had a revenue problem. At that time the solution was a Tax Surcharge.

I am surprised that a National Defense Tax Surcharge has yet to be considered. Ideally this should be on the wealth under control of the entities whose properties are being protected.

Dec. 04 2012 09:32 AM

The President caused this crisis by spending five trillion in four years with no budget and no serious economic plan while deriding those who presciently objected to this recklessness with the aid of the biased media who cheered him all the way.
Taxes could have been raised in 2010 but the Democrats deliberately manufactured the crisis by leaving the consequences of their spending to the new Republican House.
Again, the media cheered the deception and defamation that followed.

The Democrats have the despicable habit of putting their political agenda and ideology over the prosperity of the nation and why shouldn't they considering the media encourage them to do it.
The sure thing is that the media will spin whatever happens in Obama's favor because they see that as their job rather than report the truth. When the economic crash comes, the news media should take a bow because they played their part in that outcome.

The crisis deepens when the media start offering ominous suggestions to their uninformed audience like the need to depart from the US Constitution by taking economic power away from the duly elected US Congress and give it to the Federal Reserve. Scary times.

Dec. 04 2012 09:26 AM

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