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.
The real terrorists – Tea Party/GOP
Fire the House of Representatives in 2014! Republican, Democrat, Independent. If it is an incumbent running, kick him/her out, and get someone who wants to help YOU! Until the voters take control, and show the politicians we have control, nothing will change. There is no accountability for our current stock of politicians. Until this changes, expect more of the same.
It makes no difference who is in the White House, we need the Congress and the President to work this mess out for the best of the COUNTRY not either political party...
The DEMs have ALWAYS been the BIG SPENDERS, not the Republicans. OWN IT!!
You're clueless Jerry. OWN THAT!!
So the GOP is still in the pockets of the nation's wealthiest. For Boehner to step up to the plate with a proposal like that in the 11th hour is blatant evidence the GOP owes their billionaire supporters big time.
This emboldened response is what happens when Mr. Obama and the Democrats start to show ANY willingness to back away for 39.6% as the top rate and 36% as the next highest rate. Mr. President, you`ve got the high ground on tax rates. Don`t BLINK.
You may ultimately trade down on the top rate to something lower but it can ONLY be for something HUGE & LASTING like Republican support for corporate tax reform that will lead to the unravelling of the ECONOMICS of MFG OUTSOURCING. If the Democrats get this, they greatly strengthen the American economy because higher wage jobs will return to the USA.