Dem. source: GOP calling for permanent extension of cuts for wealthiest 2%
December 12th, 2012
11:52 AM ET
1 year ago

Dem. source: GOP calling for permanent extension of cuts for wealthiest 2%

Washington (CNN) – One of the reasons Tuesday night's conversation between President Barack Obama and John Boehner did not go well was because the GOP House speaker sent the White House a fiscal cliff proposal calling for a permanent extension of Bush-era tax cuts for all Americans, including for incomes in the top 2%, a Democratic source said Wednesday.

Democrats took the GOP counter offer to mean that tax reform cannot result in any marginal rates higher than current law, according to the source, who said Boehner's proposal was a "sign" to Democrats that "Boehner and the GOP are unwilling or unable to do any sort of deal that can pass the Senate or be signed by the president."

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Democrats favor raising tax rates on wealthy Americans as part of a deal to avoid the year-end fiscal cliff, while Republicans want to extend the Bush-era cuts for all income levels.

A Republican source insists the White House may have misinterpreted the latest GOP offer, since Boehner's offer includes tax reform down the road, which would render anything permanent moot.

The back-and-forth provides new insight into why the speaker described his call with the president as "deliberate" and "frank" in a Wednesday news conference.

Boehner explained that negotiations are stalled because the president won't come down on his $1.4 trillion figure for new revenue and won't up his figure for potential spending cuts.


Filed under: Fiscal Cliff • John Boehner • President Obama
soundoff (55 Responses)
  1. Tommy G

    Obama and the Democrats have shown themselves to be completely deceitful with regards to spending cuts of any kind. Why should Republicans agreee to increasing taxes on anybody when the Democrats won't aggre to cut ANY spending. As a matter of fact, Obama wanted to INCREASE it even more.

    It has become very clear that Obama and the Democrats plan is to tax more and more from fewer and fewer expecting the few to pay for the many in an endless cycle of class warfare. The "rich" will NEVER "pay their fair share" according to the Democrats, no matter how much they pay.

    December 12, 2012 12:38 pm at 12:38 pm |
  2. Pander Bear

    The GOP has learned nothing from their latest smack down in November. They should all be removed from office in 2014.

    December 12, 2012 12:39 pm at 12:39 pm |
  3. Ray E. (Georgia)

    Aw, Yes,
    It amazes me that all the peasants want the King to feed them. No one is willing to lift a hand to help themselves. Somebody has to do the work and put groceries on the shelves. The so-called rich only have so much money to pass out. If you try to take all of it be prepared to see it all go to China. When will you learn BEGGER'S CAN'T BE CHOOSERS. If you want the rich's money, start a business and be prepared to sacrifice. You think it is so easy, there's your chance.

    The porblems that are coming down the pike will soon enough teach you hard lessons you are not going to like.

    December 12, 2012 12:39 pm at 12:39 pm |
  4. Larry in Houston

    Hate to be a bearer of bad tidings – we cannot get ANYTHING Done, in this country – because of constant obstructionists – meeting upon meetings / offers & counter offers / and it just goes on, month in, & month out . Problem is : we are the ones who PAY them – ie the people in congress .
    Here's the deal : The Voters that are between the ages of 18 – 35 – "Think" all they have to do is – Vote for the Democrat – (or whomever is running for President) and everything will be ok – A lot of them don't know about – there are "other" branches of government. So, they think that once they Vote for the Presidency, it's all over with, til 4 more years. That's Why we have those people that get re-elected – and re-elected – term after term – -( in Congress) That's why states like wisconsin / michigan & others, are electing Republican Governors, because the people that are 45 + Voters are the ones that pay attention to who's in, or who's out, regarding the government, at the state level. Makes one wonder, when you see all those people on T.V. in the state of Michigan, You'd think they would have elected a democrat – as many people that are complaining. Too bad Jennifer Granholm isn't still their Governor – they wouldn't have that problem, at the state capitol.
    Bottom Line is this : Obama will have to "fight" all the way to 2014 – I mean for practically everything – Obama's hair is getting grayer by the day . lol
    Stay the Course – Mr. President. – don't fold

    December 12, 2012 12:39 pm at 12:39 pm |
  5. Fair is Fair

    "Dem. source: GOP calling for permanent extension of cuts for wealthiest 2%"
    ------
    Odd... the story says GOP calling for permanent extension of cuts for EVERYONE.

    Hell of a headline, CNN...

    December 12, 2012 12:40 pm at 12:40 pm |
  6. Canuck

    @Jerry
    "The DEMs have ALWAYS been the BIG SPENDERS, not the Republicans."

    Riiight... then please explain how those unfunded, unnecessary wars the Republicans so foolishly launched last time they were in power do not count as spending. You need to think a bit, Sir.

    December 12, 2012 12:42 pm at 12:42 pm |
  7. Ferret out the BS

    It's all about trying to make the President and the Democratic party look like the ones obstructing the negotiations. If the GOP feel so strongly about protecting their corporate buddies then let them lie in the bed they've created. The majority of Americans do belong in the middle class and we're getting pretty sick and tired of paying the majority of tax burden relative to our income level and there will be a time of reckoning, starting in 2014. The actions in Michigan yesterday along with this intransience by the GOP is pushing the working middle class to the limit.

    December 12, 2012 12:42 pm at 12:42 pm |
  8. JustAO

    Let's go off this cliff so we can blame GOP for their tax cut for rich; then we can default on our debt again and blame GOP for their tax cut for the rich. Either way, GOP will lose out and we can vote more of them out of our government next big election when Hilary Clinton wins the Presidency.

    GOP obviously want us to race to the bottom while the next generation is ready to marathon to the top again as an economic power.

    December 12, 2012 12:42 pm at 12:42 pm |
  9. Thomas

    Oracle moves 2013 dividends up to beat possible tax hike. A number of companies have been launching special dividends in recent weeks in order to deploy capital to shareholders before Jan. 1.

    Larry Ellison

    Oracle Corporation (ORCL)

    Owner of 1,105,234,580 shares

    Dividend: $265,256,299

    After 15% tax: $225,467,854

    After 43.4% tax: $148,543,527

    Saving: $76,924,327

    Sheldon Adelson

    Las Vegas Sands Corp.

    Owner of 146,955,404 shares

    Dividend: $146,955,404

    After 15% tax: $124,912,093

    After 43.4% tax: $82,295,026

    Saving: $42,617,067
    ====
    Time to redo the tax code !

    December 12, 2012 12:42 pm at 12:42 pm |
  10. Abeselom

    It seems many of the Republicans senators are more committed to Grover than their spouses!

    December 12, 2012 12:44 pm at 12:44 pm |
  11. kinona

    Are John Boerner and the rest of the GOP in their lost their minds? THEY HAVE NO PUBLIC SUPPORT FOR THEIR PLAN FROM ANYBODY!! The CEO"s are against them, The Mayors and Govenors are against them Every single Poll out says RAISE TAXES ON THE RICH!! What planet are they on? Even bloomberg today came out with another poll saying 50% of REPUBLICANS say RAISE TAXES ON THE RICH!! If they bring this economy back into recession after all the work Obama has done to get out this ditch, I hope the entire country personally go after each and everyone one of these idiots in congress. They deserve to be VOTED OUT!! They have no LEVERAGE and the longer they delay this deal, the more they will pay the price in 2014 for tanking our economy. The public voted and spoke out on November 6th, The GOP needs TO LISTEN TO THE WILL OF THE PEOPLE!!

    December 12, 2012 12:46 pm at 12:46 pm |
  12. RR

    Here we all go off the cliff, off the cliff, off the cliff.
    Here we all go off the cliff, the 1st of January morning....

    December 12, 2012 12:48 pm at 12:48 pm |
  13. Rick 7809

    Unfortunately for all of us the President is "negotiating" the only way the rethuglican party will allow. In past "negotiations" the president had a partial deal with Boehner, only to have the Tea Party tell Boehner to shove it up his ***. Boehner has to get control of his entire party to have any credibility. Right now he does not have it and the rethuglicans are quite a joke. Keep in mind they have not cared about doing anything positive for the American people since the President was elected in 2008, why should that change now?

    December 12, 2012 12:50 pm at 12:50 pm |
  14. Rudy NYC

    @jerry
    "Deficits don't matter." VP Dick Cheney, defending the Bush Tax Cuts after most economists predicted $1 trillion annual deficits within a decade.

    Bush increased annual spending by 6-9% every year of his two terms. During just his first term, Reagan tripled the national debt, and increased the annual budget deficit by a factor of ten. "Tax and spend" better than "Cut taxes and spend more".

    December 12, 2012 12:53 pm at 12:53 pm |
  15. Donna

    Canuck
    @Jerry
    "The DEMs have ALWAYS been the BIG SPENDERS, not the Republicans."
    Riiight... then please explain how those unfunded, unnecessary wars the Republicans so foolishly launched last time they were in power do not count as spending. You need to think a bit, Sir.
    -----

    You need to think a bit too Sir. Democrats voted for those wars as well. No, you are not allowed to rewrite history. Accept responsibility for once please.

    December 12, 2012 12:54 pm at 12:54 pm |
  16. Rick McDoomsday

    Obama and the Democrats want to increase taxes on the very people that have been creating all these jobs for our country the past years. Pure thoughts of dictatorship if you ask me. Taking power from the wealthy.

    December 12, 2012 12:57 pm at 12:57 pm |
  17. Tobey

    Even though i don't think tax cuts aren't good for the economy right now, i feel as if the GOP understands the meaning of the word 'equality' more than the Democrats. don't ya think, CNN???

    December 12, 2012 12:58 pm at 12:58 pm |
  18. Shawn in MD

    Tommy G, you said:

    It has become very clear that Obama and the Democrats plan is to tax more and more from fewer and fewer expecting the few to pay for the many in an endless cycle of class warfare.
    ====================================================
    This is the same ploy the republicans have been playing all along. Lets not skew the statistics. Its not the number of people but the amount of income that is relevant. If 2% of people earn 90% of all income, then 90% of all taxes should come from those 2%. Right now its not happening. So who is playing class warfare? the middle class is getting taxed so that the rich can have their entitlements! And you guys talk about food stamps when the rich are getting away with millions of dollars in federal entitlements (aks freebies aka handouts)?

    December 12, 2012 12:58 pm at 12:58 pm |
  19. Lynda/Minnesota

    "The porblems that are coming down the pike will soon enough teach you hard lessons you are not going to like."

    Good God. What drivel are you posting now? Hard lessons? Yes, there have been many. And, yes, no doubt there will always be "hard lessons" for many of us to "overcome". For more of "us" than I suspect you would care to admit.

    But, hey. To each their own, yes?

    December 12, 2012 01:00 pm at 1:00 pm |
  20. Malory Archer

    Yeah, because the 15% they currently pay is just far too much!

    December 12, 2012 01:01 pm at 1:01 pm |
  21. David

    Same old crap spilled from the GOP minions on the boards. Facts mean nothing. You can prove them wrong, and still they keep touting the same mantras that the GOP media report. Perfect example of how pathetic our educational system really is that so many Americans are confused about what needs to be done. It really is simple. You raise taxes where you can to increase revenue and you cut programs where you can to decrease expenditures. The GOP is willing to destroy this country for their ideals, which over 70% of Americans disagree with. 70%...do you think that is larger than 30%?

    December 12, 2012 01:01 pm at 1:01 pm |
  22. Donna

    It has become painfully obvious. Democrats and Obama want to turn the country into a European socialist state with the government comprising 25-40% of the economy. And they intend to do it by allowing 51% of the people to pay nothing or very little, while milking the top 1-10% for the entire amount. Make no mistake about it, the top 2% are only the CURRENT targets. To get the full amount they want that will eventually start growing to the top 3, 4, 5%. Whatever it takes to build their socialist utopia.

    December 12, 2012 01:02 pm at 1:02 pm |
  23. rs

    The GOP should be listed as a treasonous organization, and treated appropriately- either that or they should be written off and banished as being incredibly, and hopelessly stupid. This is not a battle they can win on moral, ethical, political, historical or economic grounds. Their economic theories simply make no sense. They have zero credibility at this point, and have signed pledges to lobbyists which they apparently honor more than their sacred pledge to the U.S. Constitution, the United States and the American populace.

    Tax rates, especially for the rich are at historic lows (they have been as high as 87% or more as recently as the 1950s). There is simply no justification for once again holding America hostage to give the rich more unneccessary and useless tax cuts.

    If they refuse to negotiate and do their jobs for the vast majority of Americans, after losing the election when 70% of the voters indicate this is what they want, then they are terrorists and must be driven from office and perhaps jailed. It has become that simple.

    The lies they perpetuate about budget cuts cannot go unanswered. federal spending and the defict are down since Bush was voted out. The GOP lives in a continual fantasy world where they some how believe that if they can just crash the economy just one more time, we will some how embrace their arcain and senseless ideology of plutocracy.

    This is self-destructive insanity folks, and it may be time for an intervention lest we lest the GOP destroy our great nation.

    December 12, 2012 01:02 pm at 1:02 pm |
  24. rs

    Jerry-

    "tax and spend"= Democrats

    "cut taxes and spend"= Republicans

    Which is worse?

    December 12, 2012 01:07 pm at 1:07 pm |
  25. rs

    Ray E. (Georgia)-
    We've given the rich plenty. Stop being their apologist. You're no good at it and you arguments are hollow.

    December 12, 2012 01:09 pm at 1:09 pm |
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