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US Fiscal Cliff

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Some Republicans starting to move away from Grover Norquist's pledge not to raise taxes with the fiscal cliff looming:

GOP resistance to anti-tax pledge grows
By Tom Cohen, CNN
updated 11:51 AM EST, Mon November 26, 2012

STORY HIGHLIGHTS
  • More Republicans are calling for increased tax revenue in a deficit deal
  • Anti-tax crusader Grover Norquist doesn't sound worried
  • President Obama and Congress are trying to work out an agreement
  • Without a deal, the nation faces the so-called "fiscal cliff" come January

Washington (CNN) -- Is it a slow leak that will grow into a cascade, or a minor drip easily plugged?

More and more, conservative Republicans in Congress are breaking from a pledge they signed years earlier against any kind of tax increase or additional tax revenue.

Facing the so-called fiscal cliff at the end of the year when automatic tax hikes and deep across-the-board spending cuts will occur, the GOP legislators are signaling their willingness to cut a deal with President Barack Obama and Democrats that would include more money for the government.

The overall numbers remain relatively small -- a handful of senators and House members -- but they include influential veterans such as Sens. Saxby Chambliss of Georgia, Bob Corker of Tennessee and Lindsey Graham of South Carolina, along with Rep. Peter King of New York.

"We don't generate enough revenue," Graham declared Sunday on ABC, officially disagreeing with the Taxpayer Protection Pledge he signed at the behest of anti-tax crusader Grover Norquist.

The founder of the conservative Americans for Tax Reform, Norquist advocates shrinking government by cutting spending instead of raising taxes.

He sounded unconcerned Monday about the GOP backlash, telling CNN that "no pledge-taker has voted for a tax increase."

"You've had some people discussing impure thoughts on national television," Norquist said.

The public shift by some Republicans comes after Obama won re-election and Democrats increased their slim Senate majority and narrowed the GOP majority in the House in this month's election.

In what have been secret talks so far, Obama and Congress are seeking a possible "grand bargain" to cut the chronic federal deficits and debt. Without a deal, tax cuts from 2001 and 2003 -- when George W. Bush was president -- will expire, raising rates for everyone starting in January.

At the same time, steep cuts in government spending on the military and other departments also will take effect, causing some economists to warn of a possible new recession.

A new CNN/ORC International poll released Monday shows a solid majority of respondents -- two-thirds -- supports the Democratic stance that any agreement should include a mix of spending cuts and tax increases. Of that total, Republicans favor such an approach by 52%-44%.

In particular, Obama and Democrats insist that wealthy Americans, so far identified as those with income higher than $200,000 for individuals or $250,000 for families, should pay more taxes than they do now so that rates for everyone else stay the same.

However, the outgoing Congress in a lame-duck session for the rest of the year, as well as the new Congress to be seated in January, include large numbers of Republicans who signed the Norquist pledge.

Come January, there will be 39 senators, including Chambliss and Graham, and 219 House members who have signed the pledge.

The House total constitutes a narrow majority in the 435-seat chamber, though some members have denounced their allegiance to the pledge much like Chambliss and others have done.

They generally draw the line at tax increases, calling instead for eliminating loopholes and deductions to raise more tax revenue while keeping tax rates the same or even lowering them.

"It's fair to ask my party to put revenue on the table. We're below historic averages," Graham told ABC. "I will not raise tax rates to do it. I will cap deductions. If you cap deductions around the $30,000, $40,000 range, you can raise $1 trillion in revenue, and the people who lose their deductions are the upper-income Americans."

At the same time, Graham and other conservative lawmakers demand that Democrats agree to significant reforms in entitlement programs such as Medicare and Medicaid, the government-run health care programs for senior citizens, the disabled and the poor.

"I will violate the pledge, long story short, for the good of the country, only if Democrats will do entitlement reform," Graham said.

On the same program, Democratic Sen. Dick Durbin of Illinois said some changes to Medicare are needed, but he ruled out any reforms to Social Security, the national retirement plan, saying it is a separately funded system that "does not add a penny to our debt."

Noting opposition to entitlement reforms by traditional Democratic allies such as organized labor, Durbin said everyone has to realize some changes are needed in Medicare and Medicaid.

"Those who say 'don't touch it, don't change it' are ignoring the obvious," said the Senate's No. 2 Democrat, adding that "we can make meaningful reforms in Medicare and Medicaid without compromising the integrity of the program, making sure that the beneficiaries are not paying the price for it, except perhaps the high-income beneficiaries. That to me is a reasonable approach."

However, Durbin balked at one proposal sought by Republicans -- to slowly raise the eligibility age for Medicare above the current level of 65.

"What happens to the early retiree who needs health insurance before that person's eligible for Medicare?" Durbin asked. "My concern about raising that Medicare retirement age is there will be gaps in coverage or coverage that's way too expensive for seniors to purchase."

Graham rejected Durbin's point, saying the same change instituted in Social Security has worked. He also called for adjusting benefits based on the personal wealth of recipients, so that those with more money have to pay more for services.

Norquist said Democrats will never agree to the negotiating position of Graham and other Republicans, calling the demand for entitlement reforms akin to a "pink unicorn that doesn't exist."

The political risk for Republicans to going against the no-tax pledge comes from angering Norquist and other conservatives who can target them in GOP primary campaigns in 2014 and beyond.

Norquist said Monday his group would "certainly highlight who has kept their commitment and who hasn't" when re-election time comes.

"The key here is whether or not the Republicans will move away from the ideologically rigid position, which has been the Grover Norquist pledge," Democratic Sen. Carl Levin of Michigan told NBC on Sunday. "You've got to raise additional revenues, including tax rates on the wealthy. They have to go up. Either real tax rates or effective tax rates, there are ways of doing that."

CNN's Paul Steinhauser and Kevin Liptak contributed to this report.

Source.
 
Some Republicans starting to move away from Grover Norquist's pledge not to raise taxes with the fiscal cliff looming:


I remember reading a while ago about this cliff. Everything that Bush put into place years ago, stops in January ??? ......I am not investing anything in anything that has shares or links to america. The credit union and under the bed is going to have to keep any money warm.
We could be in for a very bumpy ride.
 
There was a fascinating doco on last night sbout all this fiscal stuff in the USA. Quite enlightening - good grief it's a friggin mess Bush made, just hell for poor yanks.

So the friggin bank manager pays less tax than his maid - who has to with her working husband apply for food stamps because even workers, and even double income working people cannot afford to eat............and unless they do something about the tax system those food stamsp are going.

Consider this donald Trump pays less tax than his driver or gardner.

USA has to be the cruelest, most dishonest, bullshit culture on earth - for really their culture is saying cull the disabled/poor/weak/sick/different we don't care just kill ém, starve them/throw them away.

Bush cut so much tax from the rich he added billions in debt
 
I find it really hard to get my head around but the things i've heard are shocking. I also still just cannot get over the fact they dont have simple healthcare... everything after that just goes over my head.
 
Can someone explain the weirdo outlook of americans to helping those less fortunate?

Why do they have that kick ém to the curb cruelty, survival of the fittest, and gross excesses of all but the poor, and exceptional greed is good outlook?

How does any of that work with all the godbothering crap they spout but don't follow?
 
Some progress?

Source: Boehner offers to include higher tax rates on wealthy to avoid fiscal cliff
By Brianna Keilar and Tom Cohen, CNN
updated 10:01 PM EST, Sat December 15, 2012

STORY HIGHLIGHTS
  • Boehner spokesman says communication remains open
  • "But there is no agreement, nor is one imminent"
  • Source close to talks confirms that Boehner offers to include higher rates on wealthy
  • But reforms, cuts still sought by Boehner appear to be more than Obama will accept
Washington (CNN) -- House Speaker John Boehner has offered to include higher tax rates on the wealthiest Americans as part of a deficit-reduction deal to avoid the fiscal cliff, a source close to the talks confirmed to CNN on Saturday.

The latest twist in the negotiations, first reported by Politico, indicates a possible breakthrough in the protracted efforts to forge a deal to reduce the nation's chronic federal deficits and debt.

However, Boehner's spokesman said no deal had been reached, though communication continues with the White House.

"The lines of communication remain open but there is no agreement, nor is one imminent," said the spokesman, Michael Steel.

According to the source, who spoke on condition of not being identified further, Boehner proposed allowing tax rates on income over $1 million to return to higher rates of the 1990s while extending current reduced rates for all income up to that threshold.

In return, the Ohio Republican, who is his party's chief negotiator in the talks, wants spending cuts and reforms to entitlement programs as well as the tax system, the source said.

The reforms and cuts sought by Boehner, as described by the source, appear to be more than President Barack Obama will accept.

Obama demands that tax rates increase on income over $250,000, a stance that was central to his re-election campaign and is supported by most Americans, according to consistent poll results.

The president has said he would be open to compromise on entitlement reforms and spending cuts once Boehner and Republicans agree to the higher rates on top income brackets.

Boehner has been under pressure from the White House, Democrats, the business community and some fellow Republicans to give up a staunch opposition to any increase in tax rates.

The speaker has previously offered to increase tax revenue by eliminating unspecified deductions and loopholes, but drew the line at allowing any rates to go higher.

Conservatives trying to shrink the federal government generally oppose increasing tax revenue. They are particularly opposed to higher tax rates because history shows that once rates go up, it is difficult to later reduce goverment revenue by lowering them again.

Obama and Democrats argue that increased revenue, including higher tax rates on the wealthy, must be part of broader deficit reduction to avoid the middle class from getting hit too hard.

Source.
 
they are going to fall over the cliff. unless he is better than what I think he is. and I reckon the presedent is good but just how much.
 
Clock ticking on US fiscal cliff deal
Updated 1 hour 25 minutes ago

After weeks of failed haggling, US political leaders will convene today to attempt to hammer out a last-gasp deal to stop America's economy falling off the so-called fiscal cliff.

If Congress does not reach an agreement, around $US600 billion of spending cuts and tax increases will take effect from January 1.

Economists predict that would stifle the US economic recovery and send the country back into recession, spelling bad news for the global economy as well.

What is the fiscal cliff? Read our explainer.

Aides to both sides' leaders in the Democrat-controlled Senate have been working feverishly behind closed doors to fashion a deal palatable to Democrats as well as to Republicans, who control the House of Representatives.

Both chambers will convene this morning in a last-ditch bid to resolve the crisis, but it is not yet clear whether the Senate will have fiscal-cliff legislation to act upon.

Amid the tense negotiations, president Barack Obama has urged politicians to strike a deal, even if they must reach a compromise that lacks the significant deficit-reduction measures both sides had sought.

"We're at the point where, in just a couple of days, the law says that every American's tax rates are going up," Mr Obama said.

"Every American's pay check will get a lot smaller. And that would be the wrong thing to do for our economy."

Mr Obama met with congressional leaders at the White House on Friday and declared himself cautiously optimistic about the chances of an agreement.

But he says nothing has materialised since then.

"I was modestly optimistic yesterday, but we don't yet see an agreement. And now the pressure's on Congress to produce," he told NBC's Meet The Press.

Mr Obama, sensing a mandate from his re-election last month, wants to raise taxes on the rich.

Republicans want only to close tax loopholes to raise revenue and demand significant spending cuts in return, notably to federal benefit programs like Social Security.

But if nothing is done by the deadline, all taxpayers will see an increase.

Mr Obama has chided Republicans for resisting a deal despite what he views as significant compromises on his part to cut spending and reform expensive social programs for the poor and elderly.

"The offers that I've made to them have been so fair that a lot of Democrats get mad at me," he said.

Likely scenarios

While each side must for the sake of appearances be seen to be seeking a deal, one way out is to go over the cliff, then fix the problem in the first days of next year.

Under that scenario, Republicans who are philosophically opposed to raising taxes could vote to lower the newly raised rates on almost all Americans without formally hiking taxes.

Politicians, while ruing the inability to work out a multi-trillion-dollar grand bargain in time, have said a pared-down version dealing mainly with taxes is within reach.

Citing unnamed people briefed on the talks, The Washington Post said one version under consideration would protect nearly 30 million taxpayers from paying the higher, alternative minimum tax rate for the first time and maintain unemployment benefits for two million people.

The plan also would halt a steep cut in Medicare reimbursements for doctors and preserve popular tax breaks for both businesses and individuals, such as those for research and college tuition, the report said.

But the two sides are still at odds over where to set the limits of wealthy - at $US250,000 or $US400,000 of annual income - and over taxes on inherited estates.

Nor has there been agreement on spending cuts so sought after by Republicans, who say excessive government spending is the main driver of US debt.

Mr Obama has warned that if an agreement is not reached in time, he will ask the Senate to hold an up-or-down vote on a basic package that protects the middle class from a tax hike, extends unemployment insurance, and "lays the groundwork for future... deficit reduction".

In a weekly Republican address, senator Roy Blunt expressed some optimism, saying that "going over the fiscal cliff is avoidable".

But he criticised Democrats for focusing mainly on taxes while setting aside government spending, arguing that such inaction "shouldn't be an option".

ABC/AFP

http://www.abc.net.au/news/2012-12-30/clock-ticking-on-us-fiscal-cliff-deal/4447758
 
Still going.

The fiscal cliff is nigh; Senators strike deal, House won't vote
By Matt Smith, CNN
updated 9:47 PM EST, Mon December 31, 2012

STORY HIGHLIGHTS
  • NEW: Senate leaders cut a deal to avoid the fiscal cliff
  • NEW: Biden pitches the plan to Democrats late Monday
  • Obama says more work will be needed and chides Congress for dragging its feet
  • "Take the 84% of your winnings off the table," anti-tax crusader advises GOP
(CNN) -- Senate leaders and the White House struck a last-minute deal to avert the feared fiscal cliff Monday night, with Vice President Joe Biden headed to the Capitol Hill to pitch the plan to fellow Democrats.

"Happy New Year," Biden, who became the Democratic point man in the talks, told reporters. "Did you think we would be here New Year's Eve?"

But the House of Representatives went home long before midnight, meaning nothing will get through Congress before the combination of tax increases and spending cuts Congress has been scrambling to head off starts to kick in.

A source familiar with the deal told CNN that the Senate proposal would put off the cuts for two months and keep the expiring Bush-era tax cuts for individuals earning less than $400,000 or couples earning less than $450,000. Taxes on inherited estates over $5 million will go up, and that exemption will be indexed for inflation.

Biden had been in negotiations with Senate Minority Leader Mitch McConnell, R-Kentucky, since Sunday afternoon. Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi, both Democrats, agreed to the plan in calls with President Barack Obama, a Democratic source said Monday night.

Economists warn the one-two punch of tax increases and spending cuts could push the U.S. economy back into recession and drive unemployment back over 9% by the end of 2013. Obama had chided lawmakers earlier Monday and warned that battles over spending still loomed, hitting a nerve among several Republicans in the Senate.

"They are close, but they're not there yet," Obama said. "And one thing we can count on with respect to this Congress is that if there is even one second left before you have to do what you're supposed to do, they will use that last second."

Obama said the plan on the table would prevent a tax increase for the overwhelming majority of Americans, extend the child tax and tuition credits for families, extend credits for clean-energy companies and extend unemployment benefits for 2 million people. But he said lawmakers still have to figure out how to mitigate the impact of the planned cuts.

And he warned that if Republicans think they can get future deficit reduction solely through spending cuts "that will hurt seniors, or hurt students, or hurt middle-class families without asking also equivalent sacrifice from millionaires or companies with a lot of lobbyists ... they've got another think coming."

That irked Republican senators who have been grappling for a deal with the Democratic majority in that chamber. Sen. Bob Corker, R-Tennessee, called the president's comments "very unbecoming of where we are at this moment" and added, "My heart's still pounding."

"I know the president has fun heckling Congress," Corker said. "I think he lost probably numbers of votes with what he did."

And Sen. John McCain said Obama "sent a message of confrontation to Republicans" with his remarks.

"People have to wonder whether the president really wants issue resolved, or is it in his short-term political benefit for us to go over the cliff," said McCain, R-Arizona.

A source familiar with the negotiations said the proposals under discussion would generate $600 billion by ending the Bush-era tax cuts on individuals with incomes above $400,000 and families over $450,000. The top tax rate would return to 39.6% from its current 35%.

The deal would also increase the estate tax to 40% from the current 35% level and cap itemized deductions for individuals with incomes above $250,000 and household income over $300,000, the source said.

In the House, GOP sources said there's little practical difference in settling the issue Monday night versus Tuesday. But if House Republicans approve the bill on Tuesday -- when taxes have technically gone up -- they can argue they've voted for a tax cut to bring rates back down, even after just a few hours, GOP sources said. That could bring some more Republicans on board, one source said.

Earlier, a GOP source told CNN that the sticking point in talks was $24 billion in spending cuts being sought by Republicans in place of the $110 billion in automatic spending now set to take effect.

As Monday's deadline drew nigh, federal agencies were preparing for the possibility of furloughing workers. At the Pentagon, a Defense Department official said as many as 800,000 civilian employees could be forced to take unpaid days off as the armed services face an expected $62 billion in cuts in 2013 -- about 12% of its budget.

Those workers perform support tasks across the department, from maintaining aircraft and weapons systems to processing military payrolls and counseling families. The Pentagon believes it can operate for at least two months before any furloughs are necessary, but has to warn its civilian workforce that furloughs could be coming, the official said.

The White House budget office noted in September that sequestration was designed in 2011 as "a mechanism to force Congress to act on further deficit reduction" -- a kind of doomsday device that was never meant to be triggered. But Congress failed to substitute other cuts by the end of 2012, forcing the government to wield what the budget office called "a blunt and indiscriminate instrument."

Despite Obama's backing, one leading Senate Democrat warned a deal could run into trouble -- not only from House Republicans who have long opposed any tax increase, but also from liberals in the Senate who oppose allowing more high-income households to escape a tax increase.

"No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up," Sen. Tom Harkin, D-Iowa, said.

Conservative lobbyist Grover Norquist, whose Americans for Tax Reform pushes candidates to sign a pledge never to raise taxes, said the plan "right now, as explained" would preserve most of the Bush tax cuts and wouldn't violate his group's pledge.

"Take the 84% of your winnings off the table," Norquist told CNN. "We spent 12 years getting the Democrats to cede those tax cuts to the American people. Take them off the table. Then we go back and argue about making the tax cuts permanent for everyone."

But Robert Reich, who served as labor secretary in the Clinton administration, said the $450,000 threshold "means the lion's share of the burden of deficit reduction falls on the middle class, either in terms of higher taxes down the road or fewer government services." In addition, he said, the plan does nothing to raise the federal debt ceiling just as the federal government bumps up against its borrowing limit.

And that, McCain told CNN, is likely to be "a whole new field of battle."

"We just added 2.1 trillion in the last increase in the debt ceiling, and spending continues to go up," McCain said. "I think there's going to be a pretty big showdown the next time around when we go to the debt limit."

CNN's Mike Pearson, Jessica Yellin, Dana Bash, Deirdre Walsh, Lisa Desjardins, Ted Barrett and Ashley Killough contributed to this report.

Source.
 
Maybe the senators should be told that if the don't come up with a solution and agree they will all be docked 20% of their pay until the debt is paid back because obviously they are not doing their job and don't deserve all their pay.
 
Maybe the senators should be told that if the don't come up with a solution and agree they will all be docked 20% of their pay until the debt is paid back because obviously they are not doing their job and don't deserve all their pay.


$16.4 000 000 000 000 000 000 dollars might take them a while to pay off through some pay cuts...
 
...I bet he's happy... cheers.


happy-obama.gif
 
$16.4 000 000 000 000 000 000 dollars might take them a while to pay off through some pay cuts...

I'm not saying they pay it off, I'm saying that they feel the pain of not doing their job by finding a solution within the time frame allocated by the President. The time frame - till it is paid off - is so they feel that pain for a long time.
 
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