Will President Obama cave in?
Fiscal Cliff Talks Go Through Night With Deal Still Uncertain
Discussions faltered over the weekend after Republicans sought to include some cuts to Social Security through a changed measure of inflation. They withdrew that demand under Democratic pressure, and the focus shifted back to tax rates.
Republicans on Sunday said they were looking for a deal that preserved tax cuts for incomes below $400,000 to $500,000, as well as keeping estate taxes at Bush-era levels.
Reports emerged Monday morning that Democrats might be willing to embrace a freeze of rates below $400,000 for individuals and $450,000 for couples.
For the last few weeks the definition had been that Obama would (a) extend all of the Bsh taxes cuts (b), raise the Medicare age, and (c) cut social security.
Now its clear that "b" and "c" aren't going to happen.
So what's today's definition? Is raising the # from 250k to 400k a cave? What if by doing so Obama gets an extension of UE benefits?
So again, that's the question ... what is today's definition of Cave?
But government is built on compromise. If the founding fathers felt that any compromise was a cave, they'd still be in Philly arguing over the final draft of the constitution.
If Obama gives and the GOP gives nothing then it's NOT a compromise, it's a cave.
Nice try though.
they meet at $450k, that's not a "compromise"? In what universe?
And there is no deal yet. We have no idea how much Obama will give. That's the point of this thread and the article.
Now, if you're a center-right person, like Obama, then you'll probably see anything he does as a compromise.
And, you can't get any better than Bernie. Unfortunately, there's only one like him.
self described Socialist to national office. Whether you like it or not, America is not Vermont, and the American people chose the House, The Senate, and the President. They chose "divided goverment". They are of different parties, and therefore of different ideologies. Given those circumstances, meeting somewhere in "the center" is quite appropriate. No one is going to get 100% of what they want.
You're welcome to your own opinions, but your grasp of the facts and reality seem a bit muddled.
I'd prefer $388,500 to be the line in the sand on rate increases.
But the increased rate on dividends (conveniently left out of your account) really does offset that a bit - drawing additional revenues from the top 2% of the population where the rate line at $450,000 or $500,000 and no other revenues would not. Obviously would like to have estate as well, but both these features maintain the principle that the very wealthy should pay more.
If we review the Republican position, we see how eroded their defense is:
1) They insisted on no tax RATE increase PERIOD. They would find revenue other ways. They abandoned this position.
2) Having abandoned the "No rate Increase" position, they tried to set the rate at $1,000,000 or greater in income, and no other changes. This position, too, has fallen.
3) There was a HuffPo story this weekend that suggested the new Republican position was $500,000. Apparently, it is $550,000, but they might accept a capital gains increase alongside that.
When you look at where they started, you really see how far they've fallen. meanwhile, the Dem position started at yes on rates, and Rate at $250,000, and has apparently moved up to $450,000. That means no tax rate increases on the middle class, and only a slight movement up in brackets. Moreover, when a capital gains rate is included in the rate changes, you draw revenue from top incomes at roughly the level you would if the rate was something like $350,000, so the actual uptick is even more slight. The rate is a way for GOPers to save face. The capital gains increase may actually offset the income rate completely back down to $250,000.
The top 2% isn't evenly distributed. The big money from a tax break perspective is in the top .05%
2% increase for $250,000 to $450,000
4.6% increase above $450,000 back to Clinton tax level.
The more we get in tax cuts, the less we will need to cut entitlements.
I wasn't opposed going over the cliff. But this isn't a bad compromise either.
agree on. Looks like it will be increasing tax rates. On those earning $450,00 or more. Either that or we go over the cliff. It is not looking like all tax rates will be extended. Not sure where that is coming from.
will be a "cave" by the president. It's called "covering all the bases".