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The Boston Globe

Politics

GOP hints of dealing to avert fiscal cliff

WASHINGTON — House Speaker John Boehner offered newly reelected President Obama the faint framework of a deal to avoid a “fiscal cliff” on Wednesday, suggesting that Republicans could accept unspecified “new revenue,” but only as part of an overhaul of the tax code.

“We’re ready to be led, not as Democrats or Republicans, but as Americans,” said Boehner. “We want you to lead — not as a liberal or a conservative, but as the president of the United States of America. We want you to succeed.”

Comments

Tea Party orthodoxy and hatred probably still will not let the Republicans do much of anything except say NO! McConnel is more concerned with getting a primary challenge from a Tea Party "intellectual". I'd argue that 2014 will probably be a referendum on the Tea Party itself. I've voted for Republicans before but not these guys. Alabama will have to decide that they won't either. Republicans are ok, but not the ones that hate the government and are social cave men.

There are short and long term solutions.  Increasing the marginal tax rate for those earning $250K or more is symbolic in the short term.  Wealthy taxpayers would still get a "Bush era tax cut", except for the dollars over $250K.  But it shows a willingness on the part of Republicans to raise tax revenues on those who can most afford it.  

I heard newly elected VA senator Tim Keane suggest that negotiating drug costs for Medicare should be on the table.  This should make sense to those who believe in market forces. It should lower Medicare costs for drugs.  Again a step in the right direction.  

Long term, Congress and the American people should have the debate about how to reform the tax code and cut federal spending, but it shouldn't be done under the duress of the "fiscal cliff".  Boehner's rhetoric about willingness to increase tax revenues through growth is too long term a solution.  

 

Boehner needs to understand that if we don't find a solution by year end, it will be his fault as far as the country is concerned.

Republican deadbeats have to start paying their share of the bills. They have a nasty habit of running up the tab and then trying to get someone else to pay.

It's time for Republican moderates to take control of the party back from the Tea Party. This will begin with a solution to this problem, of averting the fiscal cliff. It is evident that the country agrees with our President and with our new Senator:  let the tax rate for income above $250,000 go back to what it was in the Clinton years. Republican moderates in congress should join with Democrats to clean up the fiscal mess. This is a vital part of the total solution, which should also include efficiencies and careful cuts in how money is spent.

Luke 12:48 says "For unto whomsoever much is given, of him shall be much required". We've had two wars and now we need to pay for them, and for the benefits our returning soldiers deserve. We also need improvements to many things in this country, including education, transportation, infrastructure, healthcare and public health initiatives (such as eliminating lyme disease, west nile virus, EEE, etc.).  It's time to get the fiscal house back in order, and to accomplish some of these things.

The Great Depression was a terrible time, but some wonderful public projects came out of it: the Hoover Dam, the Grand Coulee Dam,  Great Smoky Mountains National Park, the highway that connects Miami to Key West, the Blue Ridge Parkway, the Fort Peck Dam, LaGuardia Airport (along with over 800 other airports), the Lincoln Tunnel, the Triborough Bridge, hundreds of new public buildings, improvements to over 100,000 existing public buildings, and many many other projects.  Look at the date on your town hall and some of your schools or your local airport.... chances are good you will find an addition or a repair or new construction from the 1930's. It is time now to put our differences aside, and create good works for the future good of our country.

 

 

Tax rates under Presidents from the 1950's - 1980's were almost double what they are now and the country did very well economically for the most part, so the supply-side debate should be closed since it's done little economically to short up the economy. Unless Boehner has somehow reigned in the radical wing of his party this will come to the same conclusion as other times, failure with Boehner complaining the President didn't give up enough while the Republicans gave up nothing at all. The closing loopholes and such is never going to bring in enough to cover the revenue needed, that was shown during the election but yet like always some Republican brings it out as something new. Time to start negotiating and that means both side put EVERYTHING on the table, you don't go into a negotiation saying something cannot be touched otherwise there is no point. Time will show how sincere Boehner is but I doubt this will be resolved by the time we get to the Cliff, the Republicans don't have the will to do it and will probably delay to try and let it be on the President's hands but it won't...except on Fox.

Replies

"Unless Boehner has somehow reigned in the radical wing of his party this will come to the same conclusion as other times..."


I don't think Boehner needs to reign them in, instead he should simply IGNORE them. Moderate Republicans combined with Democrats form a majority, without any Tea Party congressmen necessary.

 

The Republicans are hardly in a position to dictate terms. Given the changing demographics of the country - the continuing rise in the percentage of the groups which vote heavily in favor of the Democrats - the GOP will eventually be fighting for its very existence.

Not that Republicans are known for their acceptance of reality. They've been pushing their "trickle-down" theory of economics for decades, and it's been proven time and again to be fallacious.

Raising the individual tax rate above $250,00 (married) will increase the taxes for someone with a taxable income of $1M by about $32K. At $250K, there is no extra tax. At $380K it is about $4K.  At $500K it is about $9K. These are hardly numbers that are going to cripple small business.

Note that this tax is on individuals' income. For small business people who report profits as income (for example S Corporations) , the extra tax is just on the profits they take out of the business.  It is not on total revenue for businesses.

The marjonal rate  for taxable income from  $250K to about $380K goes up by 3% and the marginal rate from $380K to $1M goes up by 4.6%. This taxes these rates back to where they were in 2001, prior to the Bush tax cuts. Note this is on taxable income, after deductions, which could well be $50K or more for people at this income level.

Gridlock requires too opposing views. Both sides are blocking progress. The democrats see only more revenue as the solution and will not budge. The republicans see spending cuts as the only solution and will not budge. Why not direct the increased taxes to a specific program everyone wants not just a pool of revenue that is wasted. Leave income taxes alone and increase social security and medicare taxes. Take the cap off social security and hike the medicare rate for everyone to preserve these cherished benefits. In return both sides must come up with a plan to go after waste and corruption that is rampant in the system, not ending programs but fixing them. When the waste is cleaned up come back and ask for more revenue from the wealthy and they would gladly contribute to a better run government.

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