December 31st, 2012
10:25 AM ET
10 years ago

Source: Democrats offer higher threshold for tax increases

(CNN) - Congressional Democrats trying to negotiate a deal to avoid the fiscal cliff have increased the income threshold for tax increases to $450,000, a Democratic source told CNN. President Barack Obama campaigned on a promise to raise rates on households making more than $250,000 a year.

Sen. Dick Durbin, D-Illinois, explained further on Monday that Republicans offered a $450,000 income threshold for individuals and $550,000 for couples - and that Democrats countered with a $360,000 threshold for individuals and $450,000 for couples.

Sources in both parties say talks proceeded through the night between Senate Minority Leader Mitch McConnell and Vice President Joe Biden. Don Stewart, a spokesman for McConnell, said the two men "will continue to work toward a solution."

Filed under: Fiscal Cliff
soundoff (14 Responses)
  1. plain&simple

    Joe Biden the man republicans love to ridicule,the man they need to help find solutions....sounds about right!

    December 31, 2012 08:16 am at 8:16 am |
  2. Gurgyl can augment the amount of money being taxed to 100k but NOT hurting SS, Medicare and American Middle Class. Period. Obama the best!!! Happy new year.

    December 31, 2012 08:27 am at 8:27 am |
  3. jkane sfl gop mascots the blubbering slobs allen west rover nitwitquest rick scott ,carl rove and donald dump ??????

    Make the fake gop job exporters pay the top rate ,romney comes to mind . Why would anyone vote for a tax cheat like romney ,so every body else has to pay more .grover norquest the pig gop lobbyist should go to the gallows along side his gop clients and bribe takers .lobbying is just a new word for bribery !!!!

    December 31, 2012 08:29 am at 8:29 am |
  4. Rudy NYC

    Demorats can offer any threshold they want, and the right wing will reject it. They will reject anything that "raises taxes". Sen. McConnell was allowed to bring his own hand crafted bill to the floor of the Senate that raised tax rates, and then he turned around and filibustered it. Spkr. Boehner heralded his brain child, Plan B, as if he could do what the Boehner accuses Pres. Obama of not doing: leadership. Boehner couldn't get his own caucus to approve it and never brought it up for a vote. The extremists on the right are a serious impediment to resolving the deficit problems in this country, which were caused in large part by the fiscal policies that the right wing had laid down during the previous decade: unaffordable and uneccesary tax cuts; unfunded wars; out of control spending.

    December 31, 2012 08:36 am at 8:36 am |
  5. jlf

    Congress should be doing all they can do to fix this since they are getting a 1/2-1% raise per President Obama lifting the freeze on pay increases for Congress,federal employees, and Biden (from an article i read in the Huffington Post).this is so hard for me to accept since i will see my taxes raised and have to cut back further to survive,the unemployeed will lose their benefits, and the rich will still be rich. Maybe President Obama thought that lifting the freeze would give Congress an extra incentive to do their job they've been elected to but so far it hasn't worked.

    December 31, 2012 08:43 am at 8:43 am |
  6. Jo

    Fair enough, it's the extremely wealthy who need the tax increases, not the moderately wealthy.

    December 31, 2012 08:50 am at 8:50 am |
  7. CanadaONE

    Breaking NEWS

    No DEAL in 2012

    Look to Jan 4 to 6th for next try

    December 31, 2012 08:56 am at 8:56 am |
  8. john

    Democrats hold fast and stick to their policies for which they were voted in. 250K and Less only, Or go off the cliff. I'm single 30, no kids, and make 40K per year. I don't mind paying more to live in the best country in the world. Neither should the fat cats...

    December 31, 2012 09:05 am at 9:05 am |
  9. Pete

    If democrates cave to republicans on this tax issue then I'll vote them out at midterms as well as the obstructionist republicans they're fighting against..Just a bunch of monkees in a barrel ,you shake it up and dump it out and what do yah have but the same type monkees so get rid of all politicians and start fresh...People have to be heard here and remember we wield the power with our voting rights so if they don't do our bidding as we want than out the door republicans or democrates they go...No favortism here and for the time they work they make a good amount of change don't they and believe me in the back of their minds they're thinking of raises while you and I suffer through this economic mess!!So come midterms remember what these reps have really done for you and send a message that they work for us not the corporations that line their pockets because corporations aren't the people that idiot in Romney thought they were ,were they!!We can change Washington with our vote like the tea party but more progressive,come midterms we'll show them, won't we!!

    December 31, 2012 09:24 am at 9:24 am |
  10. Charlotte

    NO!!! NO!!!! NO!!!!! People who make $450,000 a year do not need tax relief!!!! Let's just go over the "cliff" (slope) and then retroactively repair from the BOTTOM up. Idiots.

    December 31, 2012 09:29 am at 9:29 am |
  11. Rudy NYC

    Let's face it. The Tea Party is an existential threat to reducing the national debt. The annual budget was balanced until the "deficits don't matter" Bush Tax Cuts were enacted, despite predictions of annual trillion dollar deficits from the left and the right.

    Both sides argue the same point from two sides of the same coin, that being taking money out of the economy will only hurt it. Raising taxes takes money out of the economy, as does reducing spending. However, there is one significant difference. Raising taxes does put those revenues back into the economy because it will be spent.

    December 31, 2012 09:34 am at 9:34 am |
  12. Laurie

    The two parties in congress make claims about the consequences of different fiscal solutions for the economy. Republicans: If we increase taxes on the rich it will hurt job creation/economy. Dems: if we cut spending we will hurt the recovery and risk a return of the recession. These are EMPIRICAL questions. CNN - get some economists (conservative and liberal) to take apart the claims and helps us distinguish truth from fiction. You allow both sides to simply state their positions (over and over). We need the EXPERTS to comment and you need to challenge them both!

    December 31, 2012 09:35 am at 9:35 am |
  13. BILL, WI

    And what are the changes to spending. It will will take both, tax increases and spending cuts, to fix this problem. The only other alterative is to wish we had real leadership in govt. rather that this ignorant gotcha debates.

    December 31, 2012 09:39 am at 9:39 am |
  14. Name lynn

    the people all ready know what this so,call fiscal cliff an the taxes the republicans an boehner doesnt the rich to pay higher taxes but they are its going to be a fiscal cliff new year an the republicans an boehner know this obama is not going to make the rich get richer an the poor get poor

    December 31, 2012 09:45 am at 9:45 am |