What would be in Sen. Harry Reid's "fiscal cliff" plan?

(CBS News) HAWAII - The country is one week away from the so-called "fiscal cliff."

The White House and Congressional leaders have seven days to reach a budget deal to avoid tax increases for nearly every American.

"Fiscal cliff" deal could fall in Harry Reid's hands
World stocks fall over "fiscal cliff" worries

There are still have been no conversations between Democrats and Republicans Tuesday on how to avert the "fiscal cliff." That's a sure sign that Democratic Senate Majority Leader Harry Reid is working on crafting legislation on his own, which he'd essentially dare Republicans in the House and Senate to pass just before the deadline.

That bill would likely extend the Bush-era tax cuts for households making less than $250,000 a year.

It may also include enough short-term spending cuts to temporarily offset, for about six to eight months, the indiscriminate, across-the-board spending cuts set to go into effect on January 1, 2013.

Reid's bill would also try to tie up some year-end loose ends by extending long-term unemployment benefits, patching the alternative minimum tax that hits so many middle class families, and preventing a big scheduled drop-off in Medicare reimbursement rates to doctors at the start of the year.

The president has been having a low-key vacation in Hawaii, but is cutting his trip short and heading back to Washington D.C. as Wednesday night to put pressure on Congress to pass that Democratic plan.

Republicans say they are withholding judgment until they see the legislation, but in the past, a handful of Senate Republicans have said they would be okay with letting the Bush-era tax rates last for people making over $250,000 a year if that was their only option.

The question is whether or not House Speaker John Boehner would allow a vote on this Democratic plan on the House floor knowing so many House Republicans oppose it.

[ultraconservative]

And why is the cliff so bad? Just because everyone will get to feel the pain. Is it more better that I keep all my benefits intact, pay no taxes, and criticize others for not being good Americans?

[tsigili]

Obama's entire agenda.

[stsheetrock]

As World Stocks Tumbled. Harry Reid exploited Republicans handicap to not to offend their Wall Street Masters by rigging the FISCAL CLIFF. Obama cancelled his Hawaii break and rush back to White House in his pajamas to save himself. Harry Reid will carry out the same boring game. Extend under $250K Bush-Tax-Cut, Relax unemployment benefits and fiddle with doctor's bill to fool GOP fools to cloture temporary fiscal. It's the same Dog and Pony Stunt show pulled by Republicans & Democrats of the House & the Senate during 2011 Fiscal Scam Drama.

[marychgo]

For the past 25 years, all working Americans have been paying MORE into Social Security and Medicare than was needed to fund program benefits, precisely because we knew back in the '80s that the "bulge" of Baby Boomer retirements would hit right about now.

At the same time, however, thanks to Reagan, two Bushes, and GOPers in Congress, income tax rates on the richest Americans have dropped precipitously: the top marginal rate in the early '80s was 70%; today, it's 35%, and multimillionaires and billionaires are whining and weeping because it might go back to (horrors!) 39.6%. Thanks to those rate cuts, folks like Pete Peterson and the Fix the Debt CEOs have saved literally millions of dollars in taxes over the years, while excess Social Security and Medicare contributions from the 99% and their employers became a rising share of total federal revenue.

Take from the poor and middle class; give to the rich: eventually, this reverse Robin Hood act HAD to crash and burn! THAT's what we're watching today. The rich have ridden a 30-year gravy train, but the chickens are coming home to roost and they don't like it!

There's NO moral OR economic justification for benefit cuts from EITHER Social Security OR Medicare in ANY "fiscal cliff" deal. Social Security doesn't contribute to the deficit, and Medicare and Medicaid contribute only in the same way that ALL aspects of our outrageously expensive health care non-system add to the problem. We HAVE a deficit and debt problem because the wealthiest Americans have been undertaxed for 30 years and because many types of health care providers have been overpaid for 30 years. Until those economic distortions are corrected, there's no way that taxpayers and beneficiaries who have been overtaxed for decades should be asked to make even GREATER sacrifices!

[OldTimeTruth]

Yep you got that right! I am in hopes this will cost the GOP and Tea party the 2014 elections and America can get back to business and get these problems solved.

[nearl451]

Ok. Simpson -Bowles, Simpson-Bowles...3-1 spending cut to tax increase. WHatever.

THe most difficult time ever had is the scaple knife approach to the budget spending. Frankly accross the board cuts and %'s are so much more easy to swallow and to pass.

Sure the "cliff" is a 4:1 Tax increase to spending cut ratio, but it's not that egregious either.

We have had 12, no 30 years of pretending that deficits don't matter and that we can either spend outside our means or cut taxes for stimulative effect "permamently". Neither are sustainabe.

Besides, the economy, although not on fire (good from a commodities perspective) has been stable as hell for well over a year.

Nothing wrong with the "cliff" to start with....just to slow the rate of debt. Long live the "cliff".

[disney51]

Its just so hard to believe that the GOP doesn't care about 98% of Americans , let alone the 47% that Romney preached.if people don't see where the GOP is at now , they never will. as long as millionaires get the tax breaks ,they are ok, otherwise they suck!!

[lami987]

Republicans couldn't care less about average Americans they only care about their rich and powerful buddies. Grover Norquist is their idol sitting right next to their God.

[macira]

We really need these over age kids we elected to quit playing winner and loser and let the country win.

[macira]

I did not vote for Obama, but the House and Senate are supposed to craft and pass things that will govern our country, it is not designed to be a win lose contest. Lets hope this foolishness can be solved by relational people not folks acting like high school sophomores. Then there is the Grover person who thinks he runs the world, we don't need him either.
How about we see these folks act grown up?

[macira]

I did not vote for Obama, but the House and Senate are supposed to craft and pass things that will govern our country, it is not designed to be a win lose contest. Lets hope this foolishness can be solved by relational people not folks acting like high school sophomores. Then there is the Grover person who thinks he runs the world, we don't need him either.
How about we see these folks act grown up?