Obama taking "fiscal cliff" fight to the public

President Barack Obama delivers remarks about extending tax cuts for middle class people during an event in the Eisenhower Executive Office Building November 28, 2012 in Washington, DC. / Getty Images

With little evidence of progress in the "fiscal cliff" negotiations in Washington, President Obama today takes his message on the road: The president will travel to a toy manufacturing facility in Hatfield, Pa., where he will make the case that Congress should immediately extend the Bush-era tax cuts on income under $250,000 per year.

Play Video

First look at Obama's "fiscal cliff" proposal

Mr. Obama's destination appears designed to underline his argument that passage of that extension will help boost holiday spending, and, in turn, the overall U.S. economy. He will tour one of two manufacturing plants of The Rodon Group, which makes parts for Tinkertoys, K'NEX Building Sets and Lincoln Logs, among other products.

K'NEX and The Rodon Group, its subsidiary, boast that the vast majority of the parts in their products are now made in the United States. Mr. Obama is expected to make the case that the companies depend on consumer spending, and that the extension of the tax cut will help keep the company making toys and employing workers. K'NEX has moved much of its production from China to the United States over the past four years.

K'NEX CEO Michael Araten donated to Mr. Obama during the presidential campaign. His company is located in Montgomery County, outside Philadelphia, which broke for the president over Mitt Romney 57 percent to 42 percent on Election Day.

Mr. Obama's trip is an attempt to use the bully pulpit of the presidency to gain additional leverage in the seemingly-stagnant debate in Washington over how to avert the combination of tax hikes and spending cuts known as the "fiscal cliff" which is set to kick in at the end of the year in the absence of a deal. He argues that Democrats and Republicans should extend the Bush-era tax cuts now as discussions over other aspects of the "fiscal cliff" continue.

• GOP: White House "fiscal cliff" idea "a joke"
• Boehner: "no substantive progress" on "cliff" talks

The key players in the negotiation are Mr. Obama and House Speaker John Boehner, who are seeking to craft a deal that is palatable to their party bases. Mr. Obama wants Republicans to agree to allow the Bush-era tax cuts on income over $250,000 to expire, something the vast majority of Republican lawmakers say is unacceptable; Boehner wants Mr. Obama to agree to significant cuts in Medicare, Medicaid and Social Security, something the vast majority of Democrats oppose.

Boehner has said he is open to raising revenues by closing loopholes in the tax code and eliminating deductions, but he has said he will not accept increases in tax rates - and many House Republicans fear that if they vote for tax hikes, they will face well-funded Tea Party-aligned primary challengers in their next election. Negotiators for Mr. Obama are reportedly calling on Republicans to make a specific proposal for what cuts they would like to make to entitlements. If the Bush-era tax cuts expire on the highest earners, tax rates on income over $250,000 would increase from 35 percent to 39.6 percent, the rate under President Clinton.

Late Thursday, House Republicans said they rejected an offer from the Obama administration that was presented by Treasury Secretary Tim Geithner and White House Congressional Liason Rob Nabors in meetings with lawmakers on Capitol Hill. The $4 trillion offer would have raised taxes $1.6 trillion over a decade and cut $400 billion from Medicare and other entitlements, to be worked out next year.

It would also have extended the payroll tax cut, raised the estate tax to 45 percent on inheritances over $3.5 million, kept Medicare reimbursement rates from being cut (the "doc fix"), extended unemployment insurance and added $50 billion in infrastructure/stimulus spending in the first year, with more such spending in the future. House Republicans characterized the offer as a joke. Senate Republican Leader Mitch McConnell, R-KY, called it a "step backward, moving away from consensus and significantly closer to the cliff, delaying again the real, balanced solution that this crisis requires."

• no previous page
• next

1/2

[antoniof123]

Obama is going to win this fight he still has lots of political capital.

The Republicans can take us over the fiscal cliff and we can crash but like Warren Buffet said the President has about 3 t 5 months into the new year before it is too late of course he also knows that we will feel the heat soon in January.

I have been working as a contractor for almost a year now and was hoping to go permenat in January with the economy getting lot better.

If we go off the fiscal cliff I can assure you that me and others like me will blame those who support the top 2 percent.

[kelseymcl]

Inatead of flying around the country to talk to people about the fiscal cliff, Obama should be working with congressional leaders to find a viable solution.

[BobJani]

Our Congress is the best that money can buy. When you understand that they "all" feed at the trough of Wall Street and the 14,000+ lobbyists (who by the way some are former members of Congress) you then will realize that they are not for America. When you wake up from your nightmare then you can come to your senses and stop all this infighting. This is exactly what they want.

[GOP-R--Con-Men]

Republicans have 2 more years of power to stop America's progress. Countdown to 2014 elections where they get flushed down the toilet like the $hit they are.

[cydygitt2]

The outright honesty of ex-Senator, Alan Simpson:
"I always love the rigidity of some of those in my party. They are as rigid as a fireplace poker but without the occasional warmth. If you go to a legislative body and you can't compromise, you should never be in a legislature."


---
ALANRUBBISH replies: "I sure you heard that on MSNBC. You might also note that the president ignored the plan Simpson MADE"
---




LOL! Truth hurts you rigid conservatives, and that line came from the rightwing Washington Examiner:

The lighter side of doom with Alan Simpson

http://washingtonexaminer.com/the-lighter-side-of-doom-with-alan-simpson/article/2514575#.ULqdVeQrWSo

---

Secondly, since 'lyin' ryan' was a pivotal figure in killing the 2010 Bowles-Simpson agreement, the President had no choice in the matter.

The 18-member panel needed 14 votes to send a 10-year plan to trim the debt to Congress for a vote. As his party's then-ranking member on the House Budget Committee, ryan led a bloc of three House republicans who denied the additional votes needed.

All three Senate republicans on the panel backed the plan and one of them, former New Hampshire Senator judd gregg, said he believes the House republicans who rejected it were beholden to an argument by anti-tax advocate grover norquist that the measure was tantamount to a tax increase.

---

LOL! Lobbyist grover nitwitt and 'lyin ryan' derailed the Bowles-Simpson agreement!

[Truthsometimeshurts]

Who are we kidding? Obama will get what he wants by Executive Order, ignoring the laws, or however he can figure it out. The kicker is that Republicans will receive the blame when it doesn't work. We have seen this work for 4 years and why should it change now. Just a little of the truth for you if you can stop and think about it.

[RollotheNorman]

Whine, whine, whine. Doesn't it ever haunt you wingnuts to think that maybe, just maybe, 51% really do know better than the Tea Party?

[RollotheNorman]

"7lucky_seven replies:
Rollo,
No. Just 51% don't understand the most basic of economics and want free stuff that somebody else pays for."

LOL on basic economics, I notice 5 Nobel laurates in economics supported willard's (read Ryan's) package. And one of them really doesnt't do traditional economics: Gary Becker who received his nobel prize for "The Marriage Market." I don't know what the other four received Nobels in, but I hazard the guess that it was much the same stab at explaining sociological phenomena in the terms of markets.

Anybody that thinks Ryan's Aynroid trickle-down delusions describe real world economics is a dullard, dunce, and utter loon. No wonder people are leaving the RepubliCONs in droves.

[alanrobisch]

the compromise needed won't occur by as the headline states going public. He is still on the campaign trail and trying to demonize the better off. he is still a class warrior. Nothing has changed and republicans will not allow what he wants and he won't allow what they want. Gee isn't is grand.

[RollotheNorman]

The days of deals done behind closed doors in smoke filled rooms is over. LOL, all the noise is Boehner and Cantor trying to reverse the results of the election. Ain't gonna happen. Boehner should have taken the deal offered in 2011. He was a fool, he didn't, now he's not going to get as good a one in 2012. His bargaining position is only getting worse as time goes on.

[johnlockesghost]

This move by President Obama is nothing more than political posturing which only sharpens the differences between each side. On January 1, the new year, the same old disagreements will prevail.

[cydygitt2]

The outright honesty of ex-Senator, Alan Simpson:

"I always love the rigidity of some of those in my party. They are as rigid as a fireplace poker but without the occasional warmth.

If you go to a legislative body and you can't compromise, you should never be in a legislature. And you should never, ever marry."

[alanrobisch]

I sure you heard that on MSNBC. You might also note that the president ignored the plan Simpson MADE

[1pheasant1]

Make_Obama_Own_It says:

I am glad you are against the producers.
______________________________
Dan, word has it that the little blue pill won't even help you produce.