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Boehner Caves On Millionaires Tax, Debt Ceiling

From a still not satisfied Associated Press:

Movement seen in ‘fiscal cliff’ talks

By JIM KUHNHENN and ANDREW TAYLOR | December 17, 2012

WASHINGTON (AP) — The White House and congressional Republicans are a long way from agreeing on a plan to deal with the "fiscal cliff." But it seems like some progress is being made.

House Speaker John Boehner is offering $1 trillion in higher tax revenue over 10 years and an increase in the top tax rate on people making more than $1 million a year. He’s also offering a large enough extension in the government’s borrowing cap to fund the government for one year before the issue must be revisited — conditioned on President Barack Obama agreeing to the $1 trillion in cuts.

Naturally, these $1 trillion dollars in ‘cuts’ can’t kick in all at once. In fact, apart from cuts to the Pentagon, they will only happen ten or twenty years down the road. So as not to shock the fragile economy.

The offer, made Friday after a long impasse between Boehner, R-Ohio, and Obama, calls for about $450 billion in revenue from increasing the top rate on million-dollar-plus income from 35 percent to the Clinton-era rate of 39.6 percent.

By most reckonings, the US government spends nearly $3.8 billion dollars a day. So this $450 billion raised over ten years would be enough money to last 11.8 days.

The additional revenue required to meet the $1 trillion target would be collected through a rewrite of the tax code next year and by slowing the inflation adjustments made to tax brackets.

Which is a nice way of saying they are going to allow inflation to put people into higher brackets. But the good news is, we are all going to be ‘rich’ very soon.

In return, Boehner is asking for $1 trillion in spending cuts from government benefit programs like Medicare…

Cuts that will not happen until ten or even twenty years down the road. But they will still allow the Democrats to blame the Republicans for cutting Medicare for the rest of time.

The new inflation adjustment would also raise about $70 billion over a decade in new revenues because tax brackets would rise more slowly for inflation, driving people more quickly into higher tax brackets.

What’s another $70 billion in higher taxes?

Judging from the numbers, Boehner is also willing to allow tax rates on investment income to increase for high-end income and allow the reinstatement of curbs on the value of exemptions and itemized deductions for high-income earners…

In other words, these new concessions are on top of his earlier concessions, in which Boehner called for closing many tax loopholes (aka deductions).

But Boehner is showing flexibility on how quickly to implement any increase in the Medicare eligibility age, recognizing the Democratic opposition to the idea…

Again, we are talking ten or twenty years from now. Which means never.

But what a cave on all fronts. And yet Obama still won’t take yes for an answer. He will still want more.

And why not? Look at all Obama has gotten without giving up a thing.

This article was posted by Steve on Monday, December 17th, 2012. Comments are currently closed.

5 Responses to “Boehner Caves On Millionaires Tax, Debt Ceiling”

  1. River0 says:

    Boehner is worse than pathetic as a Majority Leader, giving away every bargaining chip we have – and we don’t have many – for nothing. His performance after the 2010 election should have gotten him bounced off the team, when he gave Obummer an escape route for his ineptitude, and cost us significant influence. But this is Neville Chamberlain (“Peace in our time!”) and Czechoslovakia redux. The enemy celebrates.

    At this rate, the GOP will be a nonentity party for at least a decade.

    No doubt Boehner thinks, “If I don’t do SOMETHING, Republicans will get blamed for inaction.”

    Boehner, you numbskull, Republicans are now the eternal scapegoat among the ill-educated, ill-informed, and moronic electorate; that is, 55% of America.

    BTW, the House Majority Leader doesn’t have to be elected. There’s no Constitutional requirement for that. Anyone can be appointed to the position, as Jeffrey Lord and others have discovered. Newt Gingrich could be appointed again. He’d be infinitely better than Boehner.

    • mr_bill says:

      Neville Boehner. We ought to send him a bunch of white handkerchiefs so he can waive them in his “negotiation” sessions with nerobama.

    • Mithrandir says:

      Listen, here’s a good rule of thumb so that you will never be outraged, disappointed, in disbelief, shocked, worried, or flabbergasted by anything in politics or culture:

      If it ain’t outwardly conservative, it’s liberal.

      And guess what? You’re disappointed in Boehner, or Colin Powell, or the idiotic Nobel Peace Prize committee, or the U.N.? You’re surprised? Guess who else you would have been profoundly disappointed in who isn’t outwardly conservative? –Mitt Romney.

  2. GetBackJack says:

    Should have heard Dt. Jerome Corsi on Dennis Miller today excoriating Boehner. And I mean flayed him with the Whip of Fail™ like an angry animal trainer from the 1920s.

  3. Mithrandir says:

    My favorite democrat line: “We have to increase taxes to PAY FOR these spending cuts!”

    Which means, $1 billion in tax cuts, must be balanced with $1 billion in tax increases, which = zero.

    This is the game Washington plays constantly. No worthwhile difference is ever made, just the steady plod into oblivion.

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