John Boehner delivered a letter to the White House today about the fiscal slope, and I just find it to be weird. He starts off by calling the events of November 6 a “status quo election” where the American people expect a “fair middle ground” on fiscal issues (the fact that House Democrats got more votes than House Republicans, and could have taken the chamber but for factors like gerrymandering, didn’t enter into this). He then says that Republicans “presented (the White House) with a balanced framework of spending cuts and new tax revenue. Nobody has seen this and the White House has repeatedly said that Republicans have not presented them with anything specific.
Then, Boehner laments the terrible partisanship of the Geithner proposal, which he frames in ways favorable to the Republican position. He says that the spending cuts in last year’s debt limit deal should not count toward total deficit reduction, saying this “confuses the public debate.” So those spending cuts, $1 trillion strong, have vanished, and don’t count toward a $4 trillion goal (neither do war funding savings, even though they were included in the Ryan budget). Boehner also criticizes the inclusion of new stimulus in the package, despite the clear need for more work toward economic recovery.
Then there’s this curious line: “If we were to take your Administration’s proposal at face value, then we would counter with the House-passed Budget resolution.” Boehner proceeds to… propose the House-passed Budget resolution. That’s the one that includes the end of Medicare as we know it into a premium support program, the block-granting of Medicaid and food stamps, and massive layoffs and pay cuts for federal employees.
After introducing this into the debate, Boehner says, putting on his moderate face, that given the status-quo election, it would be unwise to propose these “absolutely essential” reforms that he just spent a full page describing in detail. This represents Boehner trying to be seen as the more reasonable actor in this debate. So after determining the essential nature of these social insurance slashes, Boehner drops them.
Then he casts about for off-the-shelf solutions to get through the fiscal slope. He name-checks the “Biden group” (which worked on cuts prior to last year’s debt limit deal), the Boehner-Obama discussions right before the debt limit deal, and the Super Committee. All of these failed miserably and came to no resolution, so then Boehner goes into left field and pulls out Bowles-Simpson.
He repeatedly calls this the “Bowles plan,” emphasizing the participation of the Democrat, rather than Republican Alan Simpson. He’s actually referring to a different plan put forth by Bowles in 2011. Boehner’s conception of the “Bowles plan” is very different from what Bowles-Simpson actually does. For one, Bowles-Simpson assumes that top marginal tax rates go up. But Boehner says specifically that new revenues in this plan, which totals $800 billion over ten years, “would not be achieved through higher tax rates, which we continue to oppose.” Instead, he endorses a concept of adding $800 billion through “pro-growth tax reform” that closes loopholes and deductions “while lowering rates.” So Boehner is still offering the ROMNEY plan as his counterpoint tax plan, where rates are lower and deductions are closed. The only difference is that it’s mildly revenue-positive, at $800 billion, rather than revenue-neutral.
On top of that, Boehner wants $900 billion in cuts in mandatory spending and $300 billion in discretionary spending. This actually equals the total spending cuts in the sequester, though almost all of those come out of discretionary spending rather than mandatory. Boehner doesn’t specify any of these cuts.
Boehner calls this plan an imperfect, “fair middle ground,” and asks that they begin work on it right away. It’s only $2 trillion in total deficit reduction, but if you add the $1 trillion in previous cuts through the spending cap and $1 trillion in war funding savings, you get to $4 trillion.
Dan Pfeiffer, on behalf of the White House, immediately rejected this:
The Republican letter released today does not meet the test of balance. In fact, it actually promises to lower rates for the wealthy and sticks the middle class with the bill. Their plan includes nothing new and provides no details on which deductions they would eliminate, which loopholes they will close or which Medicare savings they would achieve. Independent analysts who have looked at plans like this one have concluded that middle class taxes will have to go up to pay for lower rates for millionaires and billionaires. While the President is willing to compromise to get a significant, balanced deal and believes that compromise is readily available to Congress, he is not willing to compromise on the principles of fairness and balance that include asking the wealthiest to pay higher rates. President Obama believes – and the American people agree – that the economy works best when it is grown from the middle out, not from the top down. Until the Republicans in Congress are willing to get serious about asking the wealthiest to pay slightly higher tax rates, we won’t be able to achieve a significant, balanced approach to reduce our deficit our nation needs.
Harry Reid emphasized the inclusion of the Romney plan and the lower tax rates it envisions, saying it would “force middle class families to pay higher taxes.” And in fact Bowles himself disavowed his 2011 plan, arguing that “circumstances have changed.”
So basically, we’re nowhere. But we’re at least setting out the terms of the discussion. The Boehner offer just replaces the sequester with different cuts and raises $800 billion in taxes. The White House offer replaces the sequester with different cuts (actually less cuts), adds stimulus, and raises $1.6 trillion in taxes. And the debt limit, which Boehner did not address at all, still sits there in the middle of the debate. We have a bit of clarity – Republicans want lower tax rates, for one – but still a rather large impasse.





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What part of the middle class has been getting skinned for the last thirty years while wages have stagnated, workers have been driven out of the bottom of the middle class, costs have risen, benefits have been pirated by takeover “artists,” and jobs have been outsourced do Mr. Boehner and his Tea Party irregulars not understand?
Stop the GOP War on the Middle Class, Mr. Boehner.
Tick…Tick…Tick…Tick…Fiscal Cliff T-28 days, 4 hours, 17 minutes.
The “Democrat” Erskine Bowles, who endorsed Republican Charlie Bass over Annie Kuster in NH-02. But I don’t blame Bowles, I blame the man who raised Bowles to prominence by appointing him to the B.-S. Commission.
Ya know farmers cut the nuts off of some of stock, so it MUST be doable!
Is there some way we can cut the nuts off of the republithans so we can keep them from breeding?
What a fuckin joke this orange hued idiot is. Why does he get any press?
I’m ok with exposing the kooks, but come on, can’t we just laugh the idiots out of the chamber?
FUCKIN FUCKIN LOSERS!
Don’t let them roll us.
Now is the time to be calling these AHoles day after day after day.
No cutting earned benefits.
And the ‘Oh what lovely wars’ drone on and on with nary a murmur.
Ike’s MIC must be laughing their collective heads off as the govt. seeks to reduce spending that serves ordinary people.
There’s a famous cartoon, from French revolutionary times, of a peasant carrying a nobleman and priest on his back. 1789 didn’t work out too well for the ‘elite’.
The “loser” rethugs know how to negotiate. Make that “extort”. They ask for way more than they want or expect. They complain and give up what they never wanted in the first place, but they get more than they expected in the first place. The Dems need to ask for elimination of Bush Tax cuts for incomes over $250,000, mandate capital gains to be taxed at ordinary income levels for gains over $250,000 (except home sales), close the mortgage deduction “loophole” for mortgage amounts exceeding $1,000,000, mandate a yearly increase in SS according to inflation, privatize SS ONLY for members of Congress, limit the dollars spent on Congressional staff, mandate negotiation over bulk drug purchases by Medicare and Medicaid, increase SS payroll cap to $200,000. THEN, he will have something the HE does not want or expect that he can sacrifice.
He should stall or postpone any agreement until the new members of Congress are seated or the filibuster is reformed. Preferably both. If Reid does not take up the filibuster immediately when the new Congress convenes, he should be impeached.
I am not holding my breath.
I want to get my hands around this, but Boehner has a point:
The public should have a general idea of what they’re doing. I’m so sick’n'tired of all these backroom deals. And yes, I understand why they do it — for political reasons. But I’d much prefer to see it all happen out in the open… shed the light of day on this crap. And maybe no political action will be taken as we roll down the fiscal bunny slope. But who knows? Maybe the consequences will be bad. Then we might get lucky and see The Incumbent Party lose lots of seats in 2014!
Um, Simpson-Bowles does, in fact, lower tax rates for top earners. See page 29. Obama’s plan IS Romney’s plan. :(
Yes, time to tell the MICs to shove it.
BTW the MICs are making hundreds of billions quietly arming the rulers domestically against the populace.
Except Boehner hasn’t actually put 800 billion on the table.
It’s really kinda shocking that the majority of the People’s House are disconnected from, you know, reality.
Boner and pals are eager to be blamed for this “fiscal cliff” bullshit just so they can keep their pledge to that unelected twerp Grover Norquist, though even they must realize that it’s going to hurt their entire party in midterms. It’s really quite mystifying.