News / USA

Boehner Floats 'Plan B' to Avoid Massive Tax Increases

Republican Proposal in Fiscal Talks Rejected by White Housei
|| 0:00:00
X
Dan Robinson
December 19, 2012 2:23 AM
Republicans in the U.S. Congress Tuesday made a tactical move designed to give them more leverage in fiscal talks with President Barack Obama. VOA senior White House correspondent Dan Robinson reports that both sides are maneuvering as negotiations continue.

Related Report by VOA's Dan Robinson

Cindy Saine
U.S. Republican House Speaker John Boehner is proposing a backup plan in case he and Democratic President Barack Obama fail to reach agreement on a deal that would prevent massive tax increases and spending cuts from automatically taking effect on January 1 - a combination of measures economists are calling the "fiscal cliff."

As negotiations between the most powerful Republican in Washington, Boehner, and the president have intensified and appeared to be making progress, Boehner met Tuesday with his Republican caucus members. He told reporters afterwards that he is preparing to introduce a bill on the floor later this week in case the talks falter.

"So at the same time that we are going to continue to talk with the president, we are also going to move 'Plan B.' I think we all know that every income tax filer in America is going to pay higher rates come January 1st unless Congress acts," he said.

Boehner outlined the essence of his backup plan.

"Our Plan B would protect American taxpayers who make a million dollars or less, and have all of their current rates extended," he said.

Boehner stressed that he is still hopeful his talks with the president will lead to an agreement, but said the president is asking Republicans to agree to $1.3 trillion in tax increases, while only offering them $850 billion in spending cuts. During the negotiations, Democrats have insisted on raising taxes for the highest income earners, while Republicans are calling for substantial cuts in social spending programs.

The Senate, which is controlled by a Democratic majority, already has passed a bill that would extend Bush-era tax cuts for Americans earning less than $250,000 a year. Analysts say the Senate would probably not accept Boehner's bill, which puts the income level exempt from tax hikes at $1 million a year.

In a written statement, the White House responded quickly to Boehner's backup plan, saying the president has put a balanced, reasonable proposal on the table, and that the speaker's "Plan B" cannot pass the Senate. The statement said the plan does little to address the nation's fiscal challenges because it has zero spending cuts.

Asked about the threat of automatic spending cuts, known as the sequester, set to take effect January 1, Boehner conceded his bill does not address them. Economists have warned that the combination of spending cuts, tax hikes and other measures could send the U.S. economy spiraling back into a recession.
For now, both the president and the speaker say they are still hoping to reach an agreement in negotiations, but both are calling on each other to give up more ground.

You May Like

Hong Kong Democracy Calls Spread to Macau

Macau and Hong Kong are China’s two 'special administrative regions' which gives them a measure of autonomy More

After Nearly 2 Years, Pistorius Remains Elusive

Reporter Anita Powell reflects on her experience covering the Olympic athlete's murder trial More

Kenyan Coastal Town Struggles With Deadly June Attacks

Three months after al-Shabab militants allegedly attacked their town, some Mpeketoni residents are still bitter, question who was really behind the assaults More

This forum has been closed.
Comment Sorting
Comments
     
by: almoros from: darfur
December 19, 2012 5:56 PM
Thoughts and prayers to all Americans to bypass it soon and to save the ever blessed and dignified U.S.A.! Together ever be united Republicans and Democrats will never be audiences but heroes at your greatest stand and service for the most generous, admired and brilliant nation in need!

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Obama to Ramp Up Anti-Ebola Efforts in Africai
X
Luis Ramirez
September 15, 2014 11:01 PM
President Barack Obama on Tuesday will unveil his plan to ramp up efforts against the spread of the Ebola virus in Africa. VOA White House Correspondent Luis Ramirez reports.
Video

Video Obama to Ramp Up Anti-Ebola Efforts in Africa

President Barack Obama on Tuesday will unveil his plan to ramp up efforts against the spread of the Ebola virus in Africa. VOA White House Correspondent Luis Ramirez reports.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid