Posted on 01/01/2013 4:46:22 PM PST by SeekAndFind
Last-minute efforts to step back from the fiscal cliff ran into trouble on Tuesday as Republicans in the House of Representatives balked at a deal that would prevent Washington from pushing the world's biggest economy into a recession.
House Republicans complained that a bill passed by the Senate in a late-night show of unity to prevent a budget crisis contained tax hikes for the wealthiest Americans but no spending cuts. Some conservatives sought to change the bill to add cuts.
That would set up a high-stakes showdown between the two chambers and risk a stinging rebuke from financial markets that are due to open in Asia in a few hours.
The Senate would refuse to accept any changes to the bill, a Senate aide said, and it appeared increasingly possible that Congress could push the country over the fiscal cliff after all, despite months of effort.
Strictly speaking, the United States went over the cliff in the first minutes of the New Year because Congress failed to produce legislation to halt $600 billion of tax hikes and spending cuts that start kicking in on Jan. 1.
But with financial markets and federal government offices closed for the New Year's Day holiday, lawmakers had a little more time to work out a compromise without real-world consequences.
The Senate bill drew overwhelming support from Republicans and Democrats alike when it passed by a vote of 89 to 8.
But Republicans who control the House expressed wide dismay with the measure, which includes only $12 billion in spending cuts along with $620 billion in tax increases on top earners.
Majority Leader Eric Cantor, the No. 2 Republican in the House, told reporters after huddling with other Republicans that he does not support the Senate's bill.
(Excerpt) Read more at newsmax.com ...
“The lack of spending cuts in the Senate bill was a universal concern among members in today’s meeting. Conversations with members will continue throughout the afternoon on the path forward,” said Cantor spokesman Rory Cooper.
HERE ARE THE DETAILS OF THE SENATE DEAL:
—Income tax rates: Extends decade-old tax cuts on incomes up to $400,000 for individuals, $450,000 for couples. Earnings above those amounts would be taxed at a rate of 39.6 percent, up from the current 35 percent. Extends Clinton-era caps on itemized deductions and the phase-out of the personal exemption for individuals making more than $250,000 and couples earning more than $300,000.
—Estate tax: Estates would be taxed at a top rate of 40 percent, with the first $5 million in value exempted for individual estates and $10 million for family estates. In 2012, such estates were subject to a top rate of 35 percent.
—Capital gains, dividends: Taxes on capital gains and dividend income exceeding $400,000 for individuals and $450,000 for families would increase from 15 percent to 20 percent.
—Alternative minimum tax: Permanently addresses the alternative minimum tax and indexes it for inflation to prevent nearly 30 million middle- and upper-middle income taxpayers from being hit with higher tax bills averaging almost $3,000. The tax was originally designed to ensure that the wealthy did not avoid owing taxes by using loopholes.
—Other tax changes: Extends for five years Obama-sought expansions of the child tax credit, the earned income tax credit, and an up-to-$2,500 tax credit for college tuition. Also extends for one year accelerated “bonus” depreciation of business investments in new property and equipment, a tax credit for research and development costs and a tax credit for renewable energy such as wind-generated electricity.
—Unemployment benefits: Extends jobless benefits for the long-term unemployed for one year.
—Cuts in Medicare reimbursements to doctors: Blocks a 27 percent cut in Medicare payments to doctors for one year. The cut is the product of an obsolete 1997 budget formula.
—Social Security payroll tax cut: Allows a 2-percentage-point cut in the payroll tax first enacted two years ago to lapse, which restores the payroll tax to 6.2 percent.
—Across-the-board cuts: Delays for two months $109 billion worth of across-the-board spending cuts set to start striking the Pentagon and domestic agencies this week. Cost of $24 billion is divided between spending cuts and new revenues from rule changes on converting traditional individual retirement accounts into Roth IRAs.
The Senate bill was a non bill. A joke in fact forcing House Republicans to look like bad guys.
Cantor is leading no charge. He knows that Bonehead will hold an open
vote, which means the Rats with a few Rino Monkeys will pass this bill.
If he truly wants to lead this charge, this bill should not be voted on. Period.
Yep. And Lindsy Graham was out running his mouth for spending cuts
today, after he voted for this sham senate bill filled with 330 billion in
new spending. Goober has a mental disorder, among other things.
“as Republicans in the House of Representatives balked at a deal that would prevent Washington from pushing the world’s biggest economy into a recession.”
There was a time when Newsmax did not make such unintelligent propaganda statements. I guess that time has long passed.
The debt limit was increased on condition congress reduce the deficit
Debt limit is increased.
Now, they reverse efforts to reduce debt.
We raised debt limit and got nothing in return.
Now, Lindsay Graham, Mcconnell, Boehner and all tell us this time will be different, we will get spending cuts in return for raising debt ceiling.
Really!!!
I am not holding my breath. If the Republicans fold, we are doomed. I hope those who refused to vote for Romney are happy now.
“That would set up a high-stakes showdown between the two chambers and risk a stinging rebuke from financial markets that are due to open in Asia in a few hours.”
What a joke.
The markets gyrate if Bernacke burps or Geitner misplaces his acne medicine. Any short term movements will be forgotten in a few weeks.
Everyone knows the long range effect on the markets depends on putting the federal monster on a huge diet. Otherwise, we will be Greece X 1,000.
The problem is the Dims don’t want to cut spending and the Gutless Old Party doesn’t seem to be up for the fight.
the latest tweet is that the house will have an up or down vote at 9pm. with no changes.
While I voted for Romeny, I think your focus is on the wrong thing. Had we had a better conservative instead of Romeny in the general election, we wouldn’t be in this situation.
Why the hell give into Zero for anything? He’s a marxist that is out to destroy this country. These bastards better get a backbone and not give into this SOB Marxist!
“this bill should not be voted on. Period.”
NO!
It should be voted on and if it passes Boehner should be removed for not whipping up votes against it.
Any RINO voting for it should know he will lose his chairmanship or any plum assignment.
Discipline has to be shown now, there are a lot of fights to be won.
“...and risk a stinging rebuke from financial markets that are due to open in Asia in a few hours.”
So? Zero will see their stinging rebuke and raise them a sternly worded letter.
I hear ya, mrsmith.
Bonehead and Cantor threatened conservatives on Plan B
But pat the Rino Monkeys on the back for this vote.
I’m guessing Bonehead will have Rino Monkeys from safe Rino
Districts put up the votes Pelosi doesn’t provide.
It is being reported that Pelosi will deliver about 180 Rat votes.
That alone should be alarming to any Republican.
Let’s back up. There is a reason why Boehner wanted the Senate to pass a bill first even though the House should have gone first. My theory is that Boehner agrees with Obama and McConnell on taxes but could not get tea party types to go along. so he deliberately wanted the Senate to wait til last minute and pass this piece of crap to put pressure on Tea Party types to go along or be seen as forcing us “over the cliff”. I just hope Cantor or someone with any sense stops this charade. NO DEAL
This vote will determine whether or not Boehner has a party left to “whip!” IF he lets this come up for vote and it passes, I do not EVER want the Republican Party to contact me again. I’ve been a no-party person for 20 years. The Tea Party HAS TO become very active in forming a new party.
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