GOP Issues New ‘Fiscal Cliff’ Offer to Obama

Comments: 1  | Leave A Comment
  • advertisement
  • WASHINGTON (AP) — House Republicans on Monday proposed a new 10-year, $2.2 trillion blueprint to President Barack Obama that calls for increasing the eligibility age for Medicare and lowering cost-of-living hikes for Social Security benefits.

    The proposal from House Speaker John Boehner, R-Ohio, and other Republicans comes in response to Obama’s offer last week to hike taxes by $1.6 trillion over the coming decade but largely exempt Medicare and Social Security from budget cuts.

    The GOP plan also proposes to raise $800 billion in higher tax revenue over the decade but it would keep the Bush-era tax cuts — including those for wealthier earners targeted by Obama — in place for now.

    Boehner said the GOP proposal is a “credible plan” for Obama and that he hopes the administration would “respond in a timely and responsible way.” The offer comes after the administration urged Republicans to detail their proposal to cut popular benefits programs like Medicare, Social Security and Medicaid.

    “After the election I offered to speed this up by putting revenue on the table and unfortunately the White House responded with their la-la land offer that couldn’t pass the House, couldn’t pass the Senate and it was basically the president’s budget from last February,” Boehner told reporters.

    The Boehner proposal revives a host of ideas from failed talks with Obama in the summer of 2011. Then, Obama was willing to discuss politically controversial ideas like raising the eligibility age for Medicare, implementing a new inflation adjustment for Social Security cost-of-living adjustments and requiring wealthier Medicare recipients to pay more for their benefits.

    On Monday, Obama did not respond to questions from reporters on his reaction to the Republican counteroffer or whether he had seen the proposal. He was asked about the offer during an event in the Oval Office with the Bulgarian prime minister.

    The clock is ticking closer to the end-of-year deadline to avert the fiscal cliff, which is a combination of the expiration of Bush-era tax cuts and automatic, across-the-board spending cuts that are the result of prior failures of Congress and Obama to make a budget deal.

    Many economists say such a one-two punch could send the fragile economy back into recession.

    GOP aides said the plan was based on a plan floated by Erskine Bowles in testimony to the special deficit “supercommittee” last year — in effect a milder version of the highly controversial 2010 Bowles proposal that caused both GOP and Democratic leaders in Congress to recoil.

    By GOP math, the plan would produce $2.2 trillion in saving over the coming decade: $800 billion in higher taxes; $600 billion in savings from costly health care programs like Medicare; $300 billion from other proposals like forcing federal workers to contribute more toward their pensions; and $300 billion in additional savings from the Pentagon budget and domestic programs funded by Congress each year.

    Under the administration’s math, GOP aides said, the plan represents $4.6 trillion in 10-year savings. That estimate accounts for earlier cuts enacted during last year’s showdown over lifting the government’s borrowing cap and also factors in war savings and lower interest payments on the $16.4 trillion national debt.

    Last week, the White House delivered to Capitol Hill its opening proposal: $1.6 trillion in higher taxes over a decade, a possible extension of the temporary Social Security payroll tax cut and heightened presidential power to raise the national debt limit.

    1 2 Next page »

    Tags: »

    • More Related Content

    Comments

    One thought on “GOP Issues New ‘Fiscal Cliff’ Offer to Obama

    1. If I was POTUS, I would piss them off and do an Executive Order!!!! I really don’t need my stuff screwed up the first of the year…..

    Add Your Comment

    Fill in your details below or click an icon to log in:

    WordPress.com Logo

    You are commenting using your WordPress.com account. Log Out / Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out / Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out / Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out / Change )

    Connecting to %s