Valdosta Daily Times

Top News

December 10, 2012

Obama, Boehner meet to discuss 'fiscal cliff’

WASHINGTON — President Barack Obama and House Speaker John Boehner met Sunday at the White House to discuss the ongoing negotiations over the impending “fiscal cliff,” the first meeting between just the two leaders since Election Day.

Spokesmen for both Obama and Boehner said they agreed to not release details of the conversation, but emphasized that the lines of communication remain open.

The meeting comes as the White House and Congress try to break an impasse over finding a way to stop a combination of automatic tax increases and spending cuts scheduled to kick in at the beginning of next year.

Obama met in November with Boehner, as well as Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi. The president spoke separately by telephone with Reid and Pelosi on Friday.

Obama has been pushing higher tax rates on the wealthiest Americans as one way to reduce the deficit — a position Boehner and other House Republicans have been steadfastly against. Republicans are demanding steeper cuts in costly government entitlement programs like Medicare and Social Security.

One GOP senator said Sunday that Senate Republicans would probably agree to higher tax rates on the wealthiest Americans if it meant getting a chance to overhaul entitlement programs.

The comments by Bob Corker of Tennessee — a fiscal conservative who has been gaining stature in the Senate as a pragmatic deal broker — puts new pressure on Boehner and other Republican leaders to rethink their long-held assertion that even the very rich shouldn’t see their rates go up next year. GOP leaders have argued that the revenue gained by hiking the top two tax rates would be trivial to the deficit, and that any tax hike hurts job creation.

But Corker said insisting on that red line — especially since Obama won re-election after campaigning on raising tax rates on the wealthy — might not be wise.

“There is a growing group of folks looking at this and realizing that we don’t have a lot of cards as it relates to the tax issue before year end,” Corker told “Fox News Sunday.”

If Republicans agree to Obama’s plan to increase rates on the top 2 percent of Americans, Corker added, “the focus then shifts to entitlements and maybe it puts us in a place where we actually can do something that really saves the nation.”

Besides getting tax hikes through the Republican-dominated House, Corker’s proposal faces another hurdle: Democrats haven’t been receptive to GOP proposals on the entitlement programs. Senate Democratic Whip Dick Durbin, D-Ill., on Sunday was skeptical about proposals to increase the eligibility age for Medicare from 65 to 67. He said he doesn’t see Congress addressing the complicated issue of Medicare overhaul in the three weeks remaining before the end of the year.

“I just don’t think we can do it in a matter of days here before the end of the year,” Durbin said. “We need to address that in a thoughtful way through the committee structure after the first of the year.”

And hard-line fiscal conservatives in the House are holding fast to their position.

“No Republican wants to vote for a rate tax increase,” said Rep. Jeb Hensarling, R-Texas, chairman of the House Republican Conference.

Added Rep. Marsha Blackburn, R-Tenn.: “I’m not sure there is support for the rate hikes. There is support for revenue by cleaning up the code.”

Still, at least one House Republican has said there is another way. Rep. Tom Cole, of Oklahoma, has said Obama and Boehner should agree not to raise tax rates on the majority of Americans and negotiate the rates for top earners later. Cole said Sunday that most House Republicans would vote for that approach because it doesn’t include a rate hike.

“You know, it’s not waving a white flag to recognize political reality,” Cole said.

Sen. Tom Coburn, R-Okla., already has said he could support higher tax rates on upper incomes as part of a comprehensive plan to cut the federal deficit.

When asked Sunday what it would take to sign on to a tax rate increase, Coburn echoed Corker’s comments by responding, “Significant entitlement reform.” He quickly added, however, that he has estimated that such a tax rate increase would only affect about 7 percent of the deficit.

“Will I accept a tax increase as a part of a deal to actually solve our problems? Yes,” Coburn said. “But the president’s negotiating with the wrong people. He needs to be negotiating with our bondholders in China, because if we don’t put a credible plan on the discussion, ultimately, we all lose.”

Obama’s plan would raise $1.6 trillion in revenue over 10 years, partly by letting decade-old tax cuts on the country’s highest earners expire at the end of the year. He would continue those Bush-era tax cuts for everyone except individuals earning more than $200,000 and couples making above $250,000. The highest rates on top-paid Americans would rise from 33 percent and 35 percent to 36 percent and 39.6 percent.

Boehner has offered $800 billion in new revenues to be raised by reducing or eliminating unspecified tax breaks on upper-income people. 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.

Hensarling and Coburn spoke on ABC’s “This Week.” Blackburn and Cole spoke on CNN’s “State of the Union.” Durbin spoke on NBC’s “Meet the Press.”

 

1
Text Only
Top News
  • Johnson family files second suit against school system

    Two months after filing a civil suit against Lowndes County Schools, Kendrick Johnson's parents have filed a second suit against the school system which again claims that negligence and bullying led to their son’s death.

    July 29, 2014

  • Bears spotted on Baytree Road

    A pair of bear sightings along Baytree Road could indicate a growing black bear population in Lowndes County.

    July 29, 2014

  • photo.JPG Dump truck suspects apprehended

    LCSO has apprehended both of the suspects believed to be connected with the theft of a dump truck in Macon on Monday.

    July 29, 2014 1 Photo

  • Dollar Tree-Family Do_Rich copy.jpg Dollar Tree buys Family Dollar

    The fight for penny pinchers is intensifying.

    July 29, 2014 1 Photo

  • APTOPIX Mideast Israe_Rich copy.jpg Gaza war rages despite Hamas, Israel truce pledges

    Israel and Hamas launched new attacks Sunday in the raging Gaza war, despite going back and forth over proposals for a temporary halt to nearly three weeks of fighting ahead of a major Muslim holiday.
    The failure to reach even a brief humanitarian lull in the fighting illustrated the difficulties in securing a more permanent truce as the sides remain far apart on their terms.

    July 29, 2014 1 Photo

  • Ga. woman sentenced in child abuse case

    The mother of a 1-year-old boy who was hospitalized with a fractured skull in 2012 has been sentenced to nine years in prison.

    July 29, 2014

  • AP81072904918 copy.jpg Today in History for Tuesday, July 29, 2014

    Today is Tuesday, July 29, the 210th day of 2014. There are 155 days left in the year.

    July 29, 2014 1 Photo

  • United Way presents fundraising prom

    Save the date — and make sure to find one — for The Prom, a retro-celebration to benefit the Greater Valdosta United Way.

    July 29, 2014

  • Times hosts blood drive

    The Valdosta Daily Times will participate in a blood drive, 12:30-5:30 p.m. Friday, Aug. 1, with the American Red Cross Bloodmobile visiting The Times’ 201 N. Troup St. parking lot.

    July 29, 2014

  • Free health fair planned for Quitman on Aug. 9

    A free health fair hosted by the 100 Black Men of Brooks-Grady-and-Thomas Counties, Inc. and sponsored by Archbold Hospital will take place Aug. 9  from 8 a.m.-noon. The second annual 100 B-G-T Health Fair will be located at the Courtland Avenue Church of Christ in Quitman. All Valdosta-Lowndes County residents are welcome to attend.

    July 29, 2014

Top News
Poll

Do you agree with the millage rate increases?

Yes. We need to maintain services
No. Services should have been cut.
     View Results