December 18th, 2012
10:53 AM ET
2 years ago

Boehner proposes short-term tax fix; Democrats say no

Washington (CNN) – In the chess match of the fiscal cliff negotiations, President Barack Obama and House Speaker John Boehner are narrowing the divide between their positions while contending with discontent among their respective ranks.

Boehner on Tuesday proposed what recently was the unthinkable for Republicans - letting tax rates go up on income above $1 million as a short-term step to avoid some of the fiscal cliff while continuing to negotiate a broader deal.

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Filed under: Fiscal Cliff • John Boehner
soundoff (18 Responses)
  1. Rudy NYC

    Don't forget about restoring capital gains to something that makes sense. Just because you sell capital instead of widgets, should not entitle you to pay a lower tax rate, especially considering that Romney sought to get rid of capital gains taxes entirely.

    December 18, 2012 10:56 am at 10:56 am |
  2. Kelby in Houston, TX

    This proposal should be rejected

    December 18, 2012 11:06 am at 11:06 am |
  3. Dan5404

    That should be a deal breaker and Obama should stick to his guns. They both will have a hard sell to the extreme wings of both parties, but s resl compromise should make everyone groan a little, but accept that wea all must give a little to save the economy.

    December 18, 2012 11:18 am at 11:18 am |
  4. jinx88

    Everytime I here short-term it drives me crazy. These guys a pathetic cant get crap done.

    December 18, 2012 11:20 am at 11:20 am |
  5. Lynda/Minnesota

    "Speaker – what is the plan?"

    What the plan has been all along. Continue to push out decision making ... thereby making the GOP look even more ineffective than it already is. In other words, the Grand Old Party has no plan. They've never have had a plan. Ever. Not since perhaps 40 years or so ago - strike that - not since forever.

    December 18, 2012 11:22 am at 11:22 am |
  6. Kr55

    Yes, we all know the GOP is about the short term. Thanks for the affirmation John.

    December 18, 2012 11:32 am at 11:32 am |
  7. Debbie

    Short term. Boehner has short term memory loss. This is just kicking the can down the road. Just jump the cliff. Raises revenue on everyone and brings cuts to the bloated overspending Defense budget. Hope Obama grows a pair and vetos this if it passes.

    December 18, 2012 11:42 am at 11:42 am |
  8. Tony from Oaklnad. Ca.

    The GOP always (1988-until present) cries about our "long term" debt after they've exited our W.H. office with a Democrat administration coming in and the unfunded Coporate tax bill arrives for America's middle class to pay. But when it comes to the top 2% paying the bill for those Coporate tax cuts they personally benefited from, as in this case. The GOP only wants to offer a "short term" fix for what they have always called US "long term" debt. We need to vote these Coporate Frauds (GOP) out in 2014 and send them packing their bags back to the South............

    December 18, 2012 11:54 am at 11:54 am |
  9. Bessy

    No, no, no–No short term fixes. That is always the Republican way out. Just let them expire and we can deal with it after they do. The people of this country will know who to blame.

    December 18, 2012 11:55 am at 11:55 am |
  10. Fair is Fair

    Rudy NYC

    Don't forget about restoring capital gains to something that makes sense.
    ------
    Since the cap gains rate was set at is is currently, there has been more revenue collected than there has ever been... in other words, even though the rate was lowered, the net revenue increased. (source: IRS) So wouldn't it "make sense" just to leave it alone?

    December 18, 2012 11:56 am at 11:56 am |
  11. Rudy NYC

    When has the Republican Party ever demonstrated behavior that could remotely be described as fiscally responsible? I'm not talking about what they say or lay claim to. I'm asking an example of an action and actual results.

    I'll save you some time. No examples exist within the context of the current cast of Republicans now occupying the Congress, most especially the House. None. All actions that Republicans have taken have been for the benefit of "job creators', which they freely admit to.

    Their altruistic talk of "economic prosperity" is in fact the naked truth. Just do not be fooled as to whose "economic prosperity" it is that they are talking about. By their own words, it is for the benefit and protection of the "job creators".

    Lastly, do not be fooled into believing that "economic prosperity" creates jobs. George W. Bush and his economic proved that disconnect beyond the shadow of all doubt.

    December 18, 2012 11:56 am at 11:56 am |
  12. Ancient Texan

    Rudy NYC- John F Kennedy, Ronald Reagan, and George Bush all experienced large increases in revenues after tax cuts...resulted in increased business and profitability and the natural result ; MORE REVENUE.

    December 18, 2012 12:09 pm at 12:09 pm |
  13. Johnny

    NO! Do not accept or short term fix. The Republicans are just trying to stall because they know they are out of options. They lost the Presidency, Senate, and lost seats in the House. The US did give Obama and the Democrats a mandate, so listen to the American people and NEGOTIATE! We're all sick and tired of these temporary fixes. DO YOUR JOB Congressmen (mostly Republicans) and come back to reality.

    December 18, 2012 12:10 pm at 12:10 pm |
  14. Sorensen

    Boehner is always short-term. Including Boehner!!!

    December 18, 2012 12:10 pm at 12:10 pm |
  15. Rudy NYC

    Fair is Fair wrote:

    Since the cap gains rate was set at is is currently, there has been more revenue collected than there has ever been... in other words, even though the rate was lowered, the net revenue increased. (source: IRS) So wouldn't it "make sense" just to leave it alone?
    ------------------
    No, that does make sense. Not when cast in the light of you posting last week that we should return all tax rates to "Clinton-era" rates, and you specifically cited capital gains. You're flip-flopping, and you know it.

    Besides, if the deficit is such a problem, then why would Romney, Ryan, and the Republicans propose eliminating capital gains altogether since it has been so beneficial to the revenue stream. The biggest problems with the rules instituted by GWB has been the loop holes that were enacted. If raising the rate is the only way to wipe those shelters off the books, then raise the rate it is.

    "Nice try, but we gotcha."

    December 18, 2012 12:18 pm at 12:18 pm |
  16. Sniffit

    "the Grand Old Party has no plan. They've never have had a plan. Ever. Not since perhaps 40 years or so ago – strike that – not since forever."

    Not true. They had a plan. The plan was to enact policies that massively redistribute wealth upwards, shrink the middle-class and make themselves more beholden to our employers while our salaries and abenefits are cut. Then, enact massive tax cuts and other forms of spending in order to create a ridiculous deficit and debt problem they could then use as justification for demanding the evisceration of Medicare, Medicaid and SS. This needed to come to fruition before the demographic shifts really started hampering their ability to win. Sooo, they're starting to realize that it's almost too late and that their dream of obliterating the New Deal society may be crumbling around them...which is why they are desperately, frantically searching for leverage via the debt ceiling...because that was planned to be their leverage all along.

    December 18, 2012 12:21 pm at 12:21 pm |
  17. Sniffit

    Simple: "We'll make a token gesture now on taxes, so that we can try to take the debt ceiling hostage in 6 weeks in order to get massive cuts to Medicare, Medicaid, SS and the ACA, while claiming that Obama already got all he's getting on taxes on the wealthy."

    December 18, 2012 12:23 pm at 12:23 pm |
  18. Rudy NYC

    Ancient Texan

    Rudy NYC- John F Kennedy, Ronald Reagan, and George Bush all experienced large increases in revenues after tax cuts...resulted in increased business and profitability and the natural result ; MORE REVENUE.
    -----------------–
    Leave JFK out of it. He doesn't fit your argument because he also increased spending. He was in the process of having to raise taxes to pay for the Vietnam War...something which George W. Bush did not do...twice....he started a war and CUT taxes.

    And they all saw self-inflicted econmic recessions. I guess that it depends upon what revenue you're talking about. That "more revenue" that you're referring to always comes from capital gains, and it always occurs with "boom then bust" economic policies. An economic "boom" on Wall Street, is then followed by a "bust" on Main Street.

    It has been demonstrated time and time again that trickle down economics

    December 18, 2012 12:26 pm at 12:26 pm |