Public backs "fiscal cliff" compromise, will Washington listen?

Treasury Secretary Timothy Geithner says any potential deal will have to include a tax hike on the upper 2 percent of income earners. But Geithner says the biggest obstacle is Republicans who refuse to budge. Anna Werner reports on how close the parties are in reaching a deal.

After the 2010 elections that propelled 69 new Republican lawmakers - many of them backed by the tea party - into Congress, they felt emboldened to change Washington and stick to their anti-tax, lower government spending principles. Their reasons were sound. They had the support of the public who voted in Republicans at record numbers in the House and diminished the Democrats' ranks in the Senate.

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Obama rallies for support of "fiscal cliff" plan

The public tide seems to have turned, especially as it relates to the so-called "fiscal cliff." A new poll by Gallup found that 70 percent of the 1,069 adults surveyed want lawmakers to compromise on the pending economic quandary. Democrats, Republicans and independents overwhelmingly back cooperation. That is an increase from even just a week ago when 62 percent wanted to see compromise.

But will the lawmakers listen?

Well, at least they're talking. As has been widely reported, President Obama and House Speaker John Boehner met for the first time in nearly a month on Sunday. That meeting came after a phone call between the two just a few days prior. And on Monday, the president phoned Senate Majority Leader Harry Reid. Perhaps more importantly, aides to both leaders resumed negotiations this week. Few details from the meetings have been released, which CBS News political director John Dickerson said is a good sign that a compromise might be on its way.

"Only until everybody gets their bending sort of aligned can they present them to their sides," he said.

• Aides: Progress on "fiscal cliff" talks maddeningly slow
• Fiscal cliff" primer: Breaking down the plans

The difficult issues: taxes for the Republicans and entitlement spending for the Democrats. Democrats insist that the parameters of a deal must revolve around raising the tax rate on the wealthy; Some Republicans, including Boehner, have indicated they'll listen to calls for a tax increase in exchange for lowering spending on programs such as Medicare and Medicaid.

Reuters reports today that a possible path to reaching a deal is to raise tax rates on the wealthy now and put in place a framework to work out next year for broader tax reform that takes caps deductions and loopholes, a general proposal backed by many Republicans.

There has also been discussion about raising the top tax rate but changing the line defining the wealthy to a level higher than $250,000, raising the top tax rate not from 35 to 39.5 percent but somewhere in between. Both Mr. Obama and Boehner subtly indicated - albeit barely - as much in recent public statements.

An increase to the debt ceiling is also being considered, according to Reuters.

Republicans, however, insist that cost-saving measures be made to entitlement health programs, especially Medicare. The president has proposed $350 billion worth of cuts while Boehner has proposed about $600 billion to the health program for seniors. One possibility is raising the age to receive benefits from 65 to 67.

Despite subtle hints at possible movement, Boehner and Mr. Obama mostly continue to publicly espouse their positions. Speaking to supporters in Michigan Monday, the president said he "won't compromise" on some things.

"I'm not going to have a situation where the wealthiest among us, including folks like me, get to keep all our tax breaks, and then we're asking students to pay higher student loans," he said.

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[farmmike]

Ross Perot had it right "hear that giant sucking sound?? That's all the jobs going to Mexico." It hasn't stopped since 1992.

[JJ_in_tulsa]

very few comments, makes you wonder how many people even watch cbs. you see lots more comments on the cable channels.. Anyone here??????????????????

[hypnotoad72]

The public keeps forgetting how much taxpayer subsidy goes to the very entities that caused this problem. You can't continue driving down wages, exploiting H1Bs, extorting illegals, giving taxpayer money to companies that offshore, bail out banks that got hammered because US workers doling out the tax money lost jobs and everything else...

Oh well.

[darkhorseky]

Oh come on. Tax the rich and get this fairy tale out of the way! The Holleywood Liberals and the Rich elite will just move thier money off shore. The federal goverment will not raise taxes on the middle class. They just dont fund local programs so local Goverments will raise taxes on the middle class. The only ones that will lose is the working middle class and the old . There will be free health care on thier backs, there will be more entitlements for those who are not motivated and gifts like free cell phones. So get it out of your system and bend over. Hope you smile in the moving forward thing.

[taxchurches]

Your grasp of politics is non-existent. Oh, you're a Bagger, aren't you? That explains it.

[darkhorseky]

taxchurchs , And I guess your a know it all, right? How meny jobs have you had? Ever work to pay much of your life. But I guess Mom and Dad paid for most of your life. I did not say anything that is not true or will come true. Being a idealist is fine , but someday you must grow up.

[surfpup]

Obama is your president now, so all you Repugnants and Tampon Baggers can quit your whining and belly aching, we don't need any crybabies in our country, so pull up your diapers, shove that pacifier in your mouth and wipe those tears away on your blankie, if you don't like it self deport yourself, because that secede notion not going to work......

[johnqadams1]

Are you really this dim? Public school to what 9th grade?

[earlysaid]

President Obama will do what is right. It is up to the republicans to compromise for the good of this nation. If they stick to their rigid anti-American Grover Norquist pledge against taxes these repubicans will be out in the next election. We in America want compromise. It is not a dirty word. It is about fairness and what is right. Both sides must work for the good of all. If the GOP are determined to end of Medicare they will not ever win another election. If they won't agree to cuts in defense or for ending corporate subsidies there is not going to be a reasonable solution.

[inketolstoy]

Just curious, what compromises are you willing to make? I understand (and agree with) you that defense spending and corporate subsidies must be cut, and I believe that rich and even the middle class must pay more in taxes. Now are you willing to compromise and cut government spending on entitlements? Real cuts, not just imaginary cuts in increased spending on paper in the next decade. Social security and medicare are broken, yet we kick those problems down the road while creating a healthcare system that is based on these two failing systems. Everybody wants compromise, but only when it is the other side that has to compromise.

[diddy_back_again]

Hey you dopes in Washington DC, you must make cuts. Stop the Marxist and his friends from spending us into oblivion.

[earlysaid]

We don't have anyone close to a Marxist other than Rand Paul and other tea party lunatics against the government.

[johnqadams1]

Early you apparently would not know a Marxist if one bit you.

[SmBusMan]

The people deserve what they voted into office. We can vote politicians out but what we have to worry about now is the Electorate. The King is off to Hawaii, while the country sinks in red ink. Reminds me of Nero fiddling while Rome burned.

[taxchurches]

It reminds you of something that never happened? That's logical. The fiddle was invented 900 years after the burning of Rome.

Impeach John Boehner.

[dan.utinske]

If the Democrats and Republicans fail to reach a compromise and there is a fiscal collapse then everyone from the President to the lowest political position needs to resign for the good of the country. Pushing this country over the fiscal cliff will water the seeds of revolution that have already been planted by the nonsensical bickering and ignorant positions taken by both political parties. They cease to be functional if this can't be resolved immediately and have failed in their duties and oath of office. Fix it now or resign! No options, no patience and no more political BS!

[Duffminster]

The problem is money in politics. Rather than doing the business of the people, these politicians (most lobbyists in the role of politician in my opinion) are running their spread sheets for campaign contributions and votes rather than actually thinking about what is best for the citizens and future generations of citizens. Over $2 billion has been spent in lobbying this year and an army of over ten thousand lobbyists consume more time than all the citizens of the United States (less the lobbyist) will ever get in a life time with these "representatives".

That the Supreme Court upheld "Citizens United vs. the Federal Election Board" was one more nail in the coffin of representative government as the influence of unlimited money in the legislative and judicial branch guarantees that the interests of money will increasingly be put ahead of the well being of the We the People of the United States.

Simpson Bowles goes right after the middle class, bumping the retirement age and doing all sorts of unnecessary and really regressive things to reduce the deficit. There are 4 really obvious things to do to get us out of the mess that no one talks about.

1. Remove the income eligibility cap on Social Security so that the rich pay the same percentage as middle class. Right now they pay a small fraction.

2. Give Medicare and Medicaid full collective bargaining power on drugs and services. If necessary bump the tax rate up say one percent or so. Americans do not want fewer benefits and they are willing to pay to keep them!

3. Incentivize doctors based on making healthy people well instead of on how many procedures they perform.

4. Make the tax code fully progressive at all levels and steepen the curve back where it was in 1950's.

5. Incentivize the Medicare to engage in more preventative education, alternative medicine, yoga, meditation, juicing, supplements, exercise.

6. Incentivize more cutting edge medicine such as using a patients own stem cells to build immunity and regenerate tissue.