Neither side budges as fiscal talks stall
Republicans aren’t budging on tax rates, and Democrats are resisting steps such as raising the eligibility age for Medicare. Negotiations on averting a year-end fiscal train wreck combining big automatic tax hikes and sweeping spending cuts again appear stalled.
There are less than three weeks before the government could careen off this “fiscal cliff,” but the chief GOP negotiator, House Speaker John Boehner, R-Ohio, said Wednesday that “serious differences” remain between him and President Barack Obama after an exchange of offers and a pair of conversations this week.
Boehner spoke after a closed-door meeting with fellow GOP lawmakers in which he advised them not to make plans for the week after Christmas.
Neither side has given much ground, and his exchange of proposals with Obama seemed to generate hard feelings more than progress. The White House has reduced slightly its demands on taxes — from $1.6 trillion over a decade to $1.4 trillion — but isn’t yielding on demands that rates rise for wealthier earners.
Boehner responded with an offer very much like one he gave the White House more than a week ago that offered $800 billion in new revenue, half of Obama’s demand. Boehner also is pressing for an increase in the Medicare eligibility age and a stingier cost-of-living adjustment for Social Security recipients.
Boehner spokesman Michael Steel said the two men did not have any follow-up talks Wednesday.