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New White House offer calls for $1.6T in new taxes over 10 years



Published: Thu, November 29, 2012 @ 6:37 p.m.

WASHINGTON (AP)

Republicans familiar with a new White House offer on avoiding the so-called fiscal cliff say it looks almost exactly like President Barack Obama's budget proposal last February.

GOP aides say Treasury Secretary Tim Geithner presented an offer calling for $1.6 trillion in new tax revenue over the coming decade, extending the 2 percentage point payroll tax deduction or something comparable to it and $50 billion in stimulus spending on infrastructure projects.

The White House plan calls for $960 billion over the coming decade by increasing tax rates and taxes on investment income on upper-bracket earners and $600 billion in additional taxes. Republicans view the offer as a step backward with the fiscal cliff - an economy-rattling set of automatic spending cuts and tax increases - looming at years' end.

The only new spending cuts in the plan would come from administration proposals curbing health care programs by $400 billion over the coming decade and modest cuts from non-health programs like farm subsidies and cutting Postal Service costs and through higher fees on airline tickets. The plan would also boost spending by extending unemployment benefits for the long-term jobless, deferring looming cuts to Medicare payments to physicians and helping homeowners refinance "underwater" mortgages..

The aides said that Geithner also requested the equivalent of a permanent extension of the government's borrowing ability to avoid wrangling over the issue as in last year's summertime crisis over raising the so-called debt limit.

The measure would block $109 billion in automatic across-the-board spending cuts known as a sequester from striking the economy in January.

The aides required anonymity because of the sensitivity of revealing the offer made by Geithner to top Republican lawmakers in meetings in the Capitol on Thursday. A senior Capitol Hill Democratic aide confirmed that the GOP description of the Geithner proposal is consistent with the latest Democratic position. The aide was not authorized to discuss the proposal publicly and would do so only on condition of anonymity.


Comments

1Ytownnative(1010 comments)posted 1 year, 7 months ago

Maybe we should let it go off the cliff and rebuild whats left

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2georgejeanie(764 comments)posted 1 year, 7 months ago

Do not give this administration one more dime to spend. Lets go over the cliff, and stop kicking this can down the road. We are just postponing the inevitable by pushing it down the road for our kids and grandchildren to pay.

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3PJR(20 comments)posted 1 year, 7 months ago

Everyone with a paycheck will be asked to step up to the plate.

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