House plans vote on millionaire tax hike as "Plan B"

Updated: 12:45 p.m. ET

House Speaker John Boehner told the House Republican Conference this morning that, given the short time before America goes over the so-called "fiscal cliff," the House will begin work on a "Plan B" to let taxes go up on income over $1 million. President Obama and Senate Democrats, however, were quick to shoot down Boehner's "plan B."

Boehner and Mr. Obama have been moving closer to a deal over an economic package as they attempt to avert the "cliff" -- a series of tax hikes and across-the-board spending cuts set to kick in at the start of next year. Negotiations will continue, but with the clock ticking down, the House will take up its "plan B" to ensure that most Americans won't see an income tax hike on Jan. 1.

• Obama moves on taxes in latest "cliff" counter-proposal
• Poll: 50 percent think "fiscal cliff" deal possible by year's end

The president's latest offer calls for $1.2 trillion in revenue and $930 billion in spending cuts, with the revenue coming from higher income taxes on income over $400,000. "That's not balanced in my opinion," Boehner said today in a press conference. "So at the same time that we're going to continue to talk to the president we're going to also move plan B."

He added, however, that he still has "hope" that "we can reach a broader agreement with the White House that would reduce spending as well as have revenues on the table."

In response to Boehner's "plan B," White House press secretary Jay Carney said that Mr. Obama has already put a "balanced, reasonable proposal" on the table. Mr. Obama, Carney said in a statement, "is not willing to accept a deal that doesn't ask enough of the very wealthiest in taxes and instead shifts the burden to the middle class and seniors."

"The Speaker's 'Plan B' approach doesn't meet this test because it can't pass the Senate and therefore will not protect middle class families, and does little to address our fiscal challenges with zero spending cuts," Carney continued. "The President is hopeful that both sides can work out remaining differences and reach a solution so we don't miss the opportunity in front of us today."

Senate Majority Leader Harry Reid also released a statement suggesting that Boehner's "plan B" won't go anywhere in the Senate.

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[getcentered]

When we were an inch away from budget surpluses under Clinton were we not also a inch away from actually bring the deficits down? Then what happened?

Bush tax cuts, (a trillion), medicare part D (a trillion), a unjust war in Iraq (3+ trillion and counting.)Talk all the BS about spending you want, Republicans are pretty much to blame, although they like to pretend they are perfect.

Remember America, Republicans started this by not raising the debt limit, just to make Obama look bad, even though a huge part of the debt is their doing.

See, Republicans take credit for everything but responsibility for nothing. They don't stand for anything and no one asks then to, especially their dimwitted voters.

I think Democrats would gladly own the raising of the taxes on the rich. Right back to Clinton era rates, and with out raising taxes on poor or middle class. It's a win, win. ...and closing some loopholes for the rich that let them dodge taxes and get tax breaks on their Private Jets.The fact of the matter is that raising taxes on the rich the Clifton levels does not hurt our economy one bit. Republicans have been spewing that lie for far to long.

The problem Republicans have is their feet are stuck in the pit of hypocritical mud. They talk a big game about reducing spending but they don't reduce any spending when they are in power. They crank it up! They talk about cutting programs that actually help people but wouldn't really make a dent on the deficit if they were cut.

What are Republicans really afraid of? I'll tell you. It's getting what THEY want. Reduced spending, but not the type they want to talk about. The fiscal cliff cuts defense spending by drastic amounts and that's what their really afraid of. The military industrial complex is their "social engineering program" that they won't cut because they are bankrolled by the industry. Republicans have no problem wasting trillions of tax dollars blowing up civilians in foreign countries that did not attack us, or a give away to big pharma, but helping the poor or vets get good healthcare when they come home from unnecessary wars is spending too much.

Bankers and baller CEO's are the only people that Republicans really care about. Remember the midterm elections America!! Vote all these Republicans hacks out!


The following are just some of the loopholes we should close:

Eliminate loopholes for oil and gas firms
• Close loopholes in the corporate tax deductibility of CEO pay
• Tax carried interest as ordinary income
• Reallocate multinational tax deductions
• Impose a windfall profits tax on oil and gas companies
• Require publicly traded financial partnerships to pay corporate income tax
• Codify economic substance doctrine (requires transactions that qualify for tax benefits have
economic justification beyond those benefits)
• Create an international tax haven watch list of countries who do not share information with
the U.S. and require greater financial disclosure to decrease tax shelters

[SanityvCave]

MJVWSR - it is not greedy to want to keep money you earned - it is a problem when you say I got mine so you go get yours. I think anyone earning over 250K would agree that they can easily pay their monthly bills and have some left over for large toys and trips (not to mention savings and investments). No one is complaining about that. What is wrong with the 'haves' paying a bit more in these troubled times? Once upon a time it would have been cheered as patriotic and given willingly - that is the real problem today.

Why is it that a 3% tax increase for the wealthy is considered 'socialism' or 'class warfare' and an 8% wage cut for the middle class is "doing your part"

[jefflz-2009]

Obama was re-elected to eliminate tax cuts for the rich and prevent cuts to Social Security and Medicare. He is already selling out. He must tell the GOP to "Drop Dead" and take no prisoners.!! They have stonewalled for years and its is time to turn the tables. Obama: Get some backbone!!

[rugbyrocks]

Ironic that Boehner's plan is the very one that Nancy Pelosi submitted to John Boehner in a letter. Now she says "just joking", it wasn't really serious. Who's holding the middle class hostage?

[rightontarget]

Once again, Bonehead is holding the middle class hostage! One Million is too high a number. I understand that Mr. Obama has counter-offered by raising his figure from 250,000 to 400,000, thus helping many small businesses but still bringing in more revenue from the wealthy. I do NOT think Mr. Obama should settle for anything less than raising the rate on people making 500,000 and above. He may have a little negotiating room but should NOT knuckle under to Bonehead's very lame proposal!

[mjvwsr]

We live in a culture where it's greedy to want to keep money you earned and not greedy to want to take it away from the one that earned it.