Obama willing to go over fiscal cliff, according to White House leaks

Neil Munro
The Daily Caller
12/3/2012

White House sources are telling Democratic reporters that the president is willing to go over the so-called “fiscal cliff” if GOP leaders don’t agree to his demand for higher tax rates on the wealthy without substantive spending cuts.

A political deadlock would mean an automatic tax increase for middle-class and wealthy Americans on January 1, and the opportunity for Obama and the Democrats to push a tax-cutting bill for middle-class voters in 2013, say the White House officials, who leaked the claim to two liberal columnists.

Republican lawmakers, including House Speaker John Boehner, say they are opposed to any increase in tax rates, but have said they would vote to increase tax revenues by ending tax breaks used by wealthier Americans…

…a left-wing columnist at The Washington Post, Greg Sargent, who sometimes is used by the White House to leak official views.

“I have just confirmed that [Corn’s report] is accurate — Obama is willing, albeit very reluctant, to go over the cliff,” Sargent wrote.

This stance puts Republicans at a disadvantage because the “fiscal cliff” will automatically raise upper-income taxes, ensuring “Dems can come back and move to pass just the middle class tax cuts, challenging Republicans to vote against renewing them after they have expired,” Sargent wrote.

The complete article is at The Daily Caller.

…Republican officials said the offer was based on a proposal outlined by Erskine Bowles, the former chief of staff to President Clinton, in testimony last year before the congressional “supercommittee” on deficit reduction. That offer is distinct from the widely-cited Simpson-Bowles deficit plan released two years ago.The GOP offer is a response to Obama’s opening bid, which called for $1.6 trillion in tax increases and reducing the power of Congress to block an increase in the debt ceiling.

“What we are putting forward is a credible plan that deserves serious consideration by the White House,” Boehner told reporters in a brief appearance at the Capitol. He said he hoped the administration would respond in a timely manner…

The full text of the letter is at the link.

H/T Hump Day Report

Also, Hate All This Talk About Raising Tax Rates? Here Are 15 Countries with No Income Taxes Whatsoever at The Blaze.

Update 2: Shockah! White House reponds to GOP’s counteroffer: Sorry, wrong number, not going there

Despite Republicans’ significant concession that they would be amenable to revenue increases if they came via tax-code reform — an honest-to-goodness effort at compromise — President Obama has roundly refused to even consider a plan that doesn’t include tax-rate increases on the wealthy, the only apparent policy rationale being that it’s just that important to him to be a full-on class warrior. It looks like the White House is sticking to that line, even after Speaker Boehner officially released the GOP’s own proposal earlier this afternoon. So much for “negotiation”…

NewsNinja2012 wrote:

Mr Boehner, these cuts cannot be scheduled for any future fiscal year. There is no reason to believe they would ever be honored. This is completely worthless.

We’d have to agree. Barack is looking to by-pass Congress, just as he did in term one. He’s going to impose his will on Congress just as he told audiences in Burma he would.

Update: And now a word of clarity from one of our Congressional betters: Sheila Jackson Lee: Let’s tell people the truth, Medicare and Social Security are solvent. She’s a genius!

 

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