Posted on 07/13/2011 7:55:05 AM PDT by markomalley
House Majority Leader Eric Cantor (R-Va.) said that President Barack Obama torpedoed a deal to raise the debt ceiling by demanding an additional $1 trillion in tax hikes in exchange for comprehensive tax reform.
Speaking to an audience at the U.S. Chamber of Commerce on Tuesday, Cantor said that Obama had offered to “de-couple” tax hikes on those making $250,000 or more in exchange for lowering tax rates later through comprehensive reform.
“As you know, the Speaker [John Boehner] ended the talks because the president insisted on raising the tax rates,” Cantor said. “From what I know – and there’s not a lot of detail that I do know about – that deal was premised upon decoupling of the Bush tax rates.”
“This was the notion that somehow you’re going to make permanent the rate at 35 percent for those [earning] under $200,000 [per year] and for everybody – individually under $200,000, couples $250,000 and over – you’re going to let those rates expire in the hopes that you’re going to get tax reform at a date certain and somehow that date certain is going to produce comprehensive tax reform that’s going to yield a lowering of the rates.”
However, Cantor said, Obama also demanded an additional $1 trillion in unidentifed tax hikes, forcing House Speaker John Boehner (R-Ohio) to walk out of the talks.
“The problem is, the president is also requesting an additional $1 trillion-plus in new revenues, which CBO right away scores as a tax increase.” (The CBO is the Congressional Budget Office.)
Cantor called Obama out on the latter’s stated desire for a grand bargain on the debt ceiling, saying that despite the rhetoric, Obama had yet to produce any details on what type of bargain he would accept.
“So, I’d like to see the specifics of what the president says his plans are,” Cantor said. “The Biden-yielded specifics, they were talked about in that meeting [July 11] and were quickly dispersed by the White House as to what the details were – again, those were the details that were discussed and identified [as] bipartisan under the Biden talks.”
In other words, the deal Obama offered Boehner would have allowed the top tax rates to rise as scheduled in exchange for Obama’s support of comprehensive tax reform, lowering all tax rates but closing loopholes and eliminating deductions. Obama also wanted at least more than $1 trillion in new unspecified tax increases.
Obama, according to Cantor, did not offer Boehner specifics on what that comprehensive tax reform might look like, only a promise that it would pass in the future, prompting Boehner to leave the talks.
The debt limit, or debt ceiling, is the amount of money the federal government is legally allowed to borrow. The current ceiling, which was hit on May 16, is $14.29 trillion. The talks between congressional leaders and the White House have concerned how to go about raising that debt ceiling another $2.4 trillion, with agreements on budget cuts and future spending, as well as the tax increases the president and the Democrats are advocating.
Congress is expected to vote on a potential debt limit increase before Aug. 2, 2011.
The “Bush tax cuts” issue was settled in December, 2010 until 2013- it’s like a contract that was signed. It’s over. You don’t allow the other party to get away with demanding some new contract with drastic changes just eight months after you signed the last one.
The economy needs some certainty on where taxes will be- the extension until 2013 gave it that (as best it could under the circumstances). And massive new taxes would damage the economy even more now.
The sole focus should be on spending, and the Republicans need to emphasize that they have made massive concessions already from the $6 Trillion in cuts they wanted earlier to the minimal $2 T in cuts now.
“...What is this janitor doing in the White House?...”
Stocking the shelves with peas.
“...What is this janitor doing in the White House?...”
Stocking the shelves with peas.
Maybe it is a bad thing to eliminate the mortgage interest deduction in the short term, but ultimately it is the mortgage interest deduction that is the biggest obstacle to any sort of tax reform involving a flat tax. When asked whether one would support a flat tax with no deductions, most people opposed it because they would lose their mortgage interest deduction. I like the deduction at tax time, but I really don't like it because it is a glaring example of using the tax could for social engineering. It is patently unfair to people who rent who make the same amount of money, and pay the same amount for housing costs, but don't end up with any equity after 40 years, and a gimme for banks who want people in 40-year mortgages so that they are always paying interest.
“I don’t think that McConnell’s plan is so bad.”
How many plans do the Republicans need? Barry and the senate dims deserve unending Alinsky style ridicule for their no see um budgets.
Anything that takes the focus off barry and his “leadership” in this economic crisis is a negative for the Republicans.
That’s the point, while Reid claims that this takes the focus off of Barry, the truth is just the opposite. The McConnell plan challenges Barry to propose the cuts that he is willing to make, not once, but three different times, bringing up this issue, three different times, with Obama being forced to propose more cuts. If Obama attaches any tax increase to the cuts, the deal just won’t pass the house.
“If Obama attaches any tax increase to the cuts, the deal just won’t pass the house.”
FRiend, why would we want to get into such a debate now? Barry and the senate dims still have not presented a current budget! What makes you think they would honor such an agreement and present serious budget cuts? He would cut aircraft carriers or some such nonsense.
I think it is clear by now that obama is not cutting anything substantial in FY 2012 regardless of tax increases. He would rather filibuster the debt negotiations and get a phony cut deal. Then he will attack the Republicans heading into 2012 regardless of the outcome.
“Boehner should have proposed a public debt summit”
Maybe, but would just be more political theatre.
We have to stop beating up the GOP leadership over this, for a simple reason:
- It is impossible to make a good deal with Obama
- Obama is very stubborn and only wants a tax hike in the deal
- Obama is doing what he can to angle for reelection
“We have to stop beating up the GOP leadership over this”
I want to agree. I am not a fan of Boehner/McConnell but I really want to be in their corner while this trench warfare goes on. But they simply must go on offense. Boehner walked out and now has not backed it up with clear demands. obama is just going to filibuster this thing through August 2nd. Where is McConnell’s defense of Sen. Sessions today, etc., etc. Attack, darn it!
“Every time I read this stuff my mind goes back to those that wouldn’t go for McNut. How is America now with your no vote or just staying home. For the hell of it, why don’t the same bunch do it in 2012. Who gives a crap about your freedom or standard of living anyway? Even now most of the GOP don’t.:
Reminds me of the statement:
“We had to burn this village in order to save it.”
Scorched earth politics is the worst.
If McCain was president, we’d have a whole different environment of massive and total blame for the economy ... BUT we would likely have a BETTER economy, if only because marxists wouldnt be worming into everything. We’d not have obamacare, etc. We would have a smaller govt. etc.
we would have freepers ragging him for being a RINO and a ton of things we wouldnt like ... BUT ... the country would have been better off.
So ... what’s the right answer? It sure as heck is not to reelect Oba-mao.
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