$2.2 Trillion Counteroffer Sent To President Obama
Earlier today, House Speaker John Boehner and six other Republican members of the House of Representatives sent President Obama a three page letter that outlined their "fiscal cliff" counteroffer.
House GOP members have put forward a $2.2 trillion proposal that would include reforms to Medicare and Medicaid, "hundreds of billions" of dollars in savings in "other mandatory spending" (including reforms to Federal employee compensation and the Supplemental Nutrition Assistance Program) and $800 billion in new revenues from "pro-growth tax reform" that would close "special-interest loopholes and deductions while lowering rates".
Republicans have been staunchly opposed to increased tax rates, which was a fundamental part of the Obama proposal that was put forward last week. In their letter to President Obama, House Republicans said that that "continue to oppose" higher tax rates and that they will not agree to them "to protect small businesses and our economy".
Some of the key components of the Obama plan:
1. $1.6 trillion in increased tax revenues over 10 years, which would include the expiration of the Bush tax cuts for the top 2% of tax payers
2. The extension of the payroll tax credit or the implementation of a similar stimulus
3. The extension of emergency unemployment benefits
4. $50 billion in new infrastructure spending
5. $400 billion in unspecified entitlement program cuts
6. The blocking of the automatic spending cuts
According to Politico.com, the main components of the House Republican plan:
1. $800 billion in increased government revenue through tax reform
2. $800 billion in health savings and "changes to an inflation formula that determines benefit levels across government programs"
3) $600 billion in other savings split between mandatory and discretionary spending
President Obama believes that he has a mandate from the American people to increase taxes on the wealthy, while the Republican side remains steadfastly opposed to any increase in the tax rate.
The two sides are running out of time to figure it out, as a deal must be agreed to by the end of the year in order to avoid the potentially disastrous "fiscal cliff."
Source: Speaker.gov - Letter to White House (*.pdf)
Filed under: General Knowledge
3 COMMENTS - What Say You?
Comment by P.T. Goodman on December 04, 2012 @ 1:48 am
I'll take the fiscal cliff over the fiscal abyss that the Republicans offer. This nonsense by the GOP has gone on way too long.
Comment by Jon on December 13, 2012 @ 4:19 pm
I agree. If the GOP won't budge, we should all go over together... and the GOP won't really mind. After all, a majority of Republicans in both houses voted FOR the Budget Reform Act of 2011 in the first place.
Secondly, those of us who spend responsibly have already taken our beating over the last several years. A 10% income tax hike isn't going to kill any of us who pay taxes, and will go a long way toward fixing the deficit.
It comes down to this: "Are we willing to do what it takes to reverse the borrow-and-spend course we've been on since the beginning of the Bush years?" If we are, it will hurt a little, but it will NOT kill us.
Comment by WV on December 23, 2012 @ 12:51 pm
Of course Republicans are opposing tax increase on the wealthy. Instead they would like to get the money out of benefits and assistance programs so they can keep rolling in money like they have been doing. "To protect small businesses and our economy" my a**. Selfish bastards!! urgh...
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