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Obama, Boehner Meet on ‘Cliff’

Leaders say lines of communication open even as compromise feels like impossibility

December 10, 2012
The Intelligencer / Wheeling News-Register

WASHINGTON (AP) - President Barack Obama and House Speaker John Boehner met Sunday at the White House to discuss the ongoing negotiations over the impending "fiscal cliff," the first meeting between just the two leaders since Election Day.

Spokesmen for both Obama and Boehner said they agreed to not release details of the conversation, but emphasized that the lines of communication remain open.

The meeting comes as the White House and Congress try to break an impasse over finding a way to stop a combination of automatic tax increases and spending cuts scheduled to kick in at the beginning of next year.

Article Photos

AP Photo
House Speaker John Boehner of Ohio and President Barack Obama meet with reporters after a Nov. 16 “fiscal cliff” meeting. The pair met again Sunday.

Obama met in November with Boehner, as well as Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi. The president spoke by telephone with Reid and in person with Pelosi on Friday.

Obama has been pushing higher tax rates on the wealthiest Americans as one way to reduce the deficit - a position Boehner and other House Republicans have been steadfastly against. Republicans are demanding steeper cuts in costly government entitlement programs like Medicare and Social Security.

One GOP senator said Sunday that Senate Republicans would probably agree to higher tax rates on the wealthiest Americans if it meant getting a chance to overhaul entitlement programs.

The comments by Bob Corker of Tennessee puts new pressure on Boehner and other Republican leaders to rethink their long-held assertion that even the very rich shouldn't see their rates go up next year. GOP leaders have argued that the revenue gained by hiking the top two tax rates would be trivial to the deficit, and that any tax hike hurts job creation.

If Republicans agree to Obama's demand to increase rates on the top 2 percent of Americans, Corker said, "the focus then shifts to entitlements and maybe it puts us in a place where we actually can do something that really saves the nation."

Besides getting tax hikes through the Republican-led House, Corker's proposal faces another hurdle: Democrats haven't been receptive to GOP proposals on the entitlement programs. Senate Democrat Whip Dick Durbin, D-Ill., on Sunday was skeptical about proposals to increase the eligibility age for Medicare from 65 to 67.

"I just don't think we can do it in a matter of days here before the end of the year," Durbin said. "We need to address that in a thoughtful way through the committee structure after the first of the year."

Fiscal conservatives in the House are holding fast to their position. "No Republican wants to vote for a rate tax increase," said Rep. Jeb Hensarling, R-Texas, chairman of the House Republican Conference.

Obama's plan would raise $1.6 trillion in revenue over 10 years, partly by letting decade-old tax cuts on the country's highest earners expire at the end of the year. He would continue those Bush-era tax cuts for everyone except individuals earning more than $200,000 and couples making above $250,000. The highest rates on top-paid Americans would rise from 33 percent and 35 percent to 36 percent and 39.6 percent.

Boehner has offered $800 billion in new revenues to be raised by reducing or eliminating unspecified tax breaks on upper-income people. The Republican plan would cut spending by $1.4 trillion, including by trimming annual increases in Social Security payments and raising the eligibility age for Medicare.

 
 

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