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Democrats prepare tax-cut bills in case nation goes over 'fiscal cliff'
The Hill ^ | 12/29/12 | Peter Schroeder

Posted on 12/30/2012 7:09:34 AM PST by Libloather

Leading Democrats are putting together fallback proposals if Washington fails to reach a deal on the “fiscal cliff” that would allow the party to cast itself as seeking to cut taxes.

“Of course, I’ve got a backup plan in the event that we don’t succeed here,” Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, said Friday. “I’m sure the White House has one too.”

Tax rates are set to expire on most households in January if Congress does not act to extend some of the rates, something some Democrats have long seen as giving their party an advantage. Once the nation goes over the fiscal cliff, pressure would build on Congress to approve lower rates for taxpayers, most of whom make much less than $250,000 per year.

Baucus did not provide details on his post-cliff plan, and emphasized that he believes that Congress should find a way to avoid the fiscal cliff before it arrives.

After meeting with President at the White House on Friday, Senate Majority Leader Harry Reid (D-Nev.) and Republican Leader Mitch McConnell (Ky.) are working on a fiscal deal. They plan to show it to colleagues Sunday.

However, the Montana Democrat acknowledged that there may be some advantages that emerge after a cliff dive that could help usher in a deal.

“That’s when the pressure really beings to mount, after the first of the year,” he said. “Some argue it would be easier to do it next year because the pressure’s greater. My view is that we should live up to our responsibilities.”

A common theory is that it would be easier to convince Republicans to vote for a legislative package after the fiscal cliff hits, since it would then entail voting for a tax cut as opposed to choosing which lower rates would be allowed to expire. Sen. Patty Murray (D-Wash.) made such an argument this summer, well before fiscal cliff talks began in earnest.

Sen. Sherrod Brown (D-Ohio) said he believed going over the cliff would put pressure on both sides, but that Democrats would enjoy public support in their efforts to avoid major cuts to entitlement programs.

“I think the public sees even more clearly that the path is not that complicated,” he said. “Ask the wealthy to pay a little bit more, making fair cuts everywhere. The public doesn’t want to see us go after Social Security and Medicare.”

Republicans have been more mum on whether they have some fallback tax plan in the works if the nation goes over the cliff, and have instead trained their focus on the next fiscal standoff: raising the debt ceiling.

Sen. Charles Grassley (R-Iowa) told The Hill that the debt limit is a vital negotiating tool for the GOP in its hunt for spending concessions.

“The whole business of the debt ceiling…that’s the leverage we’ve got,” he said. “See, all of the debates since the election until today, including today, have been about tax increases…we’ve got to start talking about spending too much.”

Treasury Secretary Timothy Geithner told Congress Wednesday that the government will reach its $16.4 trillion borrowing cap on Dec. 31, and the limit will need to be raised sometime in the next few weeks. Multiple GOP lawmakers indicated that their goal now is to get through the fiscal cliff standoff one way or another, at which point Republicans can regroup and focus their efforts on extracting concessions from the White House in exchange for a debt-limit boost.

“Give the president whatever he wants [on taxes],” Grassley said hypothetically. “All it covers is somewhere between eight and 12 percent of the $1.1 trillion deficit.

“When you get beyond this fiscal cliff deal, the public starts looking at what we’re trying to do to cut down on spending as opposed to increasing taxes, that strengthens our hand,” he added.

A House GOP aide said the debt limit provides a “natural venue” for Republicans to continue to push for preferred fiscal policies, once the fiscal cliff is in the rearview mirror.

A spokeswoman for House Ways and Means Committee Chairman Dave Camp (R-Mich.) said Friday that if 2013 arrives with no fiscal cliff deal in place, the plan from House Republicans will be to continue pushing the Senate to take up two bills already approved by the House. One bill would have extended all of the Bush tax cuts, while the other would have replaced military spending cuts with other cuts to mandatory spending and are viewed as nonstarters by Democrats.

“The House has acted to avert the entire fiscal cliff, both the January 1 tax hikes and the sequester. Our efforts to enact those goals will continue if there is no agreement prior to January 1," the spokeswoman said.

A spokesman for Senate Minority Leader Mitch McConnell (R-Ky.) also pointed to that legislation when asked about potential contingency plans.

With a fiscal cliff deal still very much in doubt, Sens. Lamar Alexander (R-Tenn.) and Bob Corker (R-Tenn.) unveiled a new proposal Friday that would slow entitlement spending by nearly $1 trillion in exchange for a equally sized increase to the debt limit.

The pair said the outcome of fiscal cliff negotiations is apparent in broad strokes — policymakers will strike some deal to avert tax hikes on most Americans, while allowing them to rise for some portion of top earners.

“For almost all Americans, when the dust settles, individual income taxes won’t be going up next year,” said Alexander.

“We know that that’s going to be the outcome,” added Corker. “But we hope that then we will turn to the serious business of reforming our entitlements.

“Unfortunately for America, the next line in the sand is going to be the debt ceiling,” he said.


TOPICS: Crime/Corruption; Extended News; Government; News/Current Events; US: Iowa; US: Kentucky; US: Michigan; US: Montana; US: Nevada; US: Ohio; US: Tennessee; US: Washington
KEYWORDS: bobcorker; bushtaxcuts; charlesgrassley; cliff; davecamp; democratstaxes; fiscal; harryreid; iowa; kentucky; lamaralexander; maxbaucus; medicare; michigan; misshimyet; mitchmcconnell; montana; nevada; obamacare; ohio; pattymurray; sherrodbrown; socialsecurity; tennessee; timothygeithner; washington; zerocare
Tax cuts work? Who knew? Frickin' leeches.
1 posted on 12/30/2012 7:09:44 AM PST by Libloather
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To: Libloather

Exactly! I thought taxes were good. In fact, it’s the only way to prosperity.

You can’t fix retarded.


2 posted on 12/30/2012 7:13:27 AM PST by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: Libloather

And of course, with the aid of the media, the Republicans will look like crap and the Democrats will be golden because they came up with plan even though it’s what (some) Republicans have been asking for.


3 posted on 12/30/2012 7:17:17 AM PST by Thorliveshere
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To: Libloather

Thesis, anti-thesis, synthesis. Not to worry. Socialists have the solution to the socialist-induced fiasco.


4 posted on 12/30/2012 7:17:44 AM PST by PGalt
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To: Libloather

We are soooooooooooo screwed!
These asshats couldn’t find their butts with two hands.
The corruption is so deep on BOTH sides of the aisle that they will never come to any agreement that will be for the good of the Republic.
It’s all about them. It’s all about getting re-elected. It’s all about taking care of your pals. Both sides are more than guilty of this.
The only chance we have is to start from the ground up, with local elections, governors especially, to get the states to flip these clowns off!


5 posted on 12/30/2012 7:18:57 AM PST by mark3681
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To: Libloather
RINOs and Dems will vote for class warfare (raising taxes on the job creators) further wrecking the economy and then the TEA Party will sweep Capital Hill in 2014...

...I know, take out the umbrellas for the flying pig poop...but...it can happen—I sure as heck hope it does at any rate.

6 posted on 12/30/2012 7:20:34 AM PST by Happy Rain (Outlawing firearms because of Adam Lanza would be like outlawing free speech because of Bill Maher.)
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To: Libloather
Democrats are absolute humongous hypocritical asswipes!

They help Obama DESTROY the country and then want to turn around and use CONSERVATIVE ideas like Bush did to restore what they destroy.

FUDems!

7 posted on 12/30/2012 7:23:01 AM PST by sirchtruth (Freedom is not free.)
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To: Libloather

Do everything you can to cause the problem, blame it on the other party, and then take credit for stepping in to save the day. Gotta give it to the Dems, they’re devious and they play to win while Pubbies sit and watch in the grandstands happy to have seats near the playing field.


8 posted on 12/30/2012 7:26:10 AM PST by Starboard
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To: Thorliveshere
And of course, with the aid of the media, the Republicans will look like crap and the Democrats will be golden because they came up with plan even though it’s what (some) Republicans have been asking for.

Listening to ABC Radio News the other day driving in to work, they phrased it to sound like the Democrats were the ones fighting to keep the evil Republicans from raising middle class taxes.

9 posted on 12/30/2012 7:26:28 AM PST by Riley (The Fourth Estate is the Fifth Column.)
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Comment #10 Removed by Moderator

To: Libloather

All of this “over the cliff” garbage is just that.

The Republicans caved in weeks ago and are waiting until the very list hour to finally make it public so that it will look like they fought almost to the death to capitulate to the enemy (Democrats).

In that way, they can say they did the best they could.

I expect the “breakthrough..(ie. “cave in”) to occur about 11 pm on the final day before the cliff is reached.


11 posted on 12/30/2012 7:28:45 AM PST by DH (Once the tainted finger of government touches anything the rot begins)
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To: Libloather
Tax cuts work? Who knew? Frickin' leeches.

The only problem is they will add so much spending and other Freedom-squashing crap to their "tax cut" bills that the Repubs will have to either say no (and get blamed for keeping the burden upon us) or sell us down the road - any bets on how it plays out?

12 posted on 12/30/2012 7:28:56 AM PST by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: unixfox

“I thought taxes were good. In fact, it’s the only way to prosperity.”
********
It’s true. I head and read it in our mainstream media. If they said it the Democrats must be right. /sarc


13 posted on 12/30/2012 7:29:35 AM PST by Starboard
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To: PGalt
Saturday, December 29, 2012 Schakowsky accuses GOP of 'literally' taking food from babies It looks like Rep. Jan Schakowsky (D-IL) has been taking lessons from Vice President Joe Biden. Either that or she has become extraordinarily ​comfortable with hyperbole. “The Republicans, the disdain that I have seen for poor people, for people who are struggling, like senior citizens on Medicare and Social Security, for low income people and the Women Infant Children (WIC) program,” Rep. Schakowsky said during a Friday broadcast of MSNBC’s “The Ed Show.” “We saw the Republicans, last week, vote [for] spending cuts that would literally take food out of the mouths of hungry babies,” she added, signaling that she has either a remarkably poor understanding of the word “literally” or that she’s interested in a permanent spot on MSNBC. ...More HERE

http://illinoisreview.typepad.com/illinoisreview/2012/12/schakowsky-accuses-gop-of-literally-taking-food-from-babies.html

14 posted on 12/30/2012 7:29:57 AM PST by KeyLargo
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To: Libloather
Tax increases, tax decreases. Meh.

The problem is SPENDING. Tax cuts will increase revenue but it won't make any difference if they are blowing it out the other side.

15 posted on 12/30/2012 7:30:19 AM PST by oldbrowser (They are marxists, don't call them democrats)
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To: KeyLargo

Pretty sad when even the French get it and we don’t.


16 posted on 12/30/2012 7:30:27 AM PST by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: DH

Another goof!

Last = list


17 posted on 12/30/2012 7:30:46 AM PST by DH (Once the tainted finger of government touches anything the rot begins)
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To: Riley

The media just gets its talking points from the White Hut press office, puts their byline on it and moves the blather to the public waiting for their daily dose of BS.

We used to laugh at the crap given out by the gov in N Korea. We long surpassed them. There is almost nil actual reporting going on these days.

Meanwhile, I note the French, of all places, just had their ridicules millionaires tax over turned in their courts due to “being unequal” in its application. How is ours equal when it is not?


18 posted on 12/30/2012 7:31:22 AM PST by Mouton (108th MI Group.....68-71)
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To: Riley

ABC Radio News
******
Arugably the worst liberal propaganda outlet out there. They are very devious in how they SHAPE the “news”.


19 posted on 12/30/2012 7:35:28 AM PST by Starboard
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To: Starboard

Sometimes I can’t believe that my car radio still works.


20 posted on 12/30/2012 7:37:10 AM PST by Riley (The Fourth Estate is the Fifth Column.)
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To: Starboard

I turn off the news when it comes on. Call your local station and complain about ABC Radio news and tell them you shut it off and do not hear the advertisers that provide their income.


21 posted on 12/30/2012 8:01:47 AM PST by cp124 (Government is value subtracted.)
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To: Libloather

MY STARS!!!!!!

DEMOCRATS CALLING FOR TAX CUTS!!!!

I thought I’d never see the day. And it’s all because THEY ARE PANICKING now, simply because the Republicans have, so far, held their ground.

So I say, let’s SET THE TERMS this time. If they want to vote on a tax cut in the House, then we get something out of it too.

By the way, I’ve been SCREAMING that this would happen for weeks. The Dems painted themselves in a giant hole when they convinced THEIR VOTERS that the Bush Tax Cuts ONLY benefited ‘the rich’. Now that will be BLOWN OPEN if those cuts are allowed to expire. So I say: LET THEM EXPIRE!! and then we can talk about how to solve problems.


22 posted on 12/30/2012 8:32:07 AM PST by BobL (Agenda 21...Agenda 21...Agenda 21...Agenda 21...Agenda 21... (whatever the hell that is))
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To: BobL

Get ready for the headlines!

Obama Middle Class Tax Cuts Held Hostage By GOP


23 posted on 12/30/2012 8:35:25 AM PST by Perkalong (GOP 2012 = Whigs 1856)
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To: Libloather

Sometimes, doing nothing is a real cool policy.


24 posted on 12/30/2012 8:39:17 AM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: Happy Rain

Sweep in 2014 then Impeach and REMOVE Obama.


25 posted on 12/30/2012 8:42:38 AM PST by DownInFlames
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To: DownInFlames
By then the dumb ass Obama “low information voters” will have had so many reality 2by4s slapped upside their heads it should be very possible.
26 posted on 12/30/2012 8:58:58 AM PST by Happy Rain (Outlawing firearms because of Adam Lanza would be like outlawing free speech because of Bill Maher.)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks Libloather.
...that would allow the party to cast itself as seeking to cut taxes. "Of course, I've got a backup plan in the event that we don't succeed here," Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, said Friday. "I'm sure the White House has one too."
Repeal Obamacare, now, fathead, there's your plan. Jackass.

Here's the White Hut's plan:
At one point, according to notes taken by a participant, Mr. Boehner told the president, "I put $800 billion [in tax revenue] on the table. What do I get for that?" "You get nothing," the president said. "I get that for free."
Everyone needs to realize that Zero is consistent about one thing, and that is, lying. He recently lied about bringing all our troops home for the first time in ten years, then started to shift deployments into Africa. We'll have troops in dozens of African countries, and in serious combat in some of those countries, for years to come, Obama's Wars. Sidebars:
27 posted on 12/30/2012 10:16:30 AM PST by SunkenCiv (Romney would have been worse, if you're a dumb ass.)
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To: Libloather
And no mention of patching the AMT one more time? We are so screwed...

Regards,
GtG

28 posted on 12/30/2012 12:45:28 PM PST by Gandalf_The_Gray (I live in my own little world, I like it 'cuz they know me here.)
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