House Speaker John Boehner says he is readying a backup bill aimed at averting the 'fiscal cliff'
WASHINGTON – House Speaker John A. Boehner’s "Plan B" on the budget talks, bringing to a vote his proposal to extend expiring tax breaks for all but the wealthiest Americans who earn more than $1 million a year, ran almost immediately Tuesday into stiff resistance.
Conservative Republicans pushed back against it, the White House swiftly rejected the approach and House Minority Leader Nancy Pelosi (D-San Francisco) called it “dead on arrival.”
Boehner’s decision, shared behind closed doors during a morning meeting of rank-and-file lawmakers, was an abrupt shift after the Ohio Republican and President Obama had substantially narrowed their differences in talks that both sides described as optimistic. The vote could come as soon as Thursday.
By calling up legislation for a vote, the speaker is trying to build momentum toward a resolution as talks over a broader deficit deal continue. He wants to avoid having his party be seen as causing a tax hike in the new year on most Americans, which would happen if no agreement is reached.
PHOTOS: Notable moments of the 2012 presidential election
"We have to stop whatever tax rate increases we can," the speaker told his troops, according to prepared remarks from a source familiar with the talk, but not authorized to disclose it. "In the absence of an alternative, as of this morning, a modified Plan B is the plan. At the same time we're moving on Plan B, we're leaving the door wide open for something better."
The speaker made it clear he is not cutting off talks with Obama as they continue to pursue a deficit-reduction package to avert automatic tax hikes and spending cuts in the new year. He and the president spoke by phone late Monday after a morning meeting at the White House.
White House Press Secretary Jay Carney dismissed the speaker’s Plan B in a statement, saying it “can’t pass the Senate and therefore will not protect middle class families." He added that Obama "is not willing to accept a deal that doesn’t ask enough of the very wealthiest in taxes and instead shifts the burden to the middle class and seniors."
Obama campaigned on extending tax breaks for household income less than $250,00, although he has suggested raising that threshold to $400,000 in talks this week with Boehner.
Boehner seeks to launch a legislative ping-pong game over the bill between the House and Senate. If he is able to pass his Plan B in the House – which remains uncertain – Republicans expect the Senate, controlled by Democrats, would likely amend the bill to reflect Obama’s priorities on taxes and stimulus spending on long-term unemployment insurance, and send it back to the lower chamber.
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Senate Majority Leader Harry Reid (D-Nev.) said the Boehner bill could not pass either chamber.
As Boehner outlined his strategy Tuesday, conservative Republicans bristled at being asked to raise the highest tax rates, now at 35%, to 39.6% for those earning more than $1 million. Tax rates on capital gains and dividends would also rise on those wealthy households.
“I hate it. I hate it,” said Rep. Jason Chaffetz (R-Utah), an outspoken leader of House conservatives. But he did not say he would oppose it. “I’m trying to be reasonable. I understand no one person is going to get everything they want.”
Conservatives want more spending cuts in exchange for any new tax revenue – but not the massive automatic spending cuts coming early next year. Plan B would keep those cuts in place.
Freshman Rep. Sean Duffy (R-Wis.) said reaction was mixed as Boehner spoke. “There will be some of us that will say, no, some of us will say, yes,” he said. “This is a reality check, people are trying to grapple with the situation in which we sit right now.”
Democrats, though, were more certain in the outcome, especially because the Boehner proposal would reduce the cost of living adjustment for those who receive government benefits, likely including Social Security, which would be a major concession for the Democratic Party. Obama has offered making that cut, but only in exchange for higher tax rates on households making at least $400,000 a year.
QUIZ: How much do you know about the fiscal cliff?
“I don’t know what the purposes of this Plan B is," Pelosi said as she emerged from a closed-door meeting of the House Democrats. "To find out if Democrats will support that? They won’t."
"Speaker Boehner seems to be walking away," added Maryland Rep. Chris Van Hollen, the House Democrats' point person for discussions of the so-called fiscal cliff. "I know he says he wants to engage in conversation but now he’s doing this unilateral course."
Boehner faces an enormous test in trying to get his Plan B out of the House with his conservative majority. He plans to offer the rank-and-file a chance to make changes to the bill.
“He’s got a difficult hand to play: On the one hand he’s got difficult negotiations and on the other hand he’s got a contentious conference to deal with,” said freshman Rep. Steve Womack (R-Ark.) “He understands what reality is. He understands he’s got a difficult sell ahead of him.”
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Twitter: @LisaMascaroinDC
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WASHINGTON – House Speaker John A. Boehner’s "Plan B" on the budget talks, bringing to a vote his proposal to extend expiring tax breaks for all but the wealthiest Americans who earn more than $1 million a year, ran almost immediately Tuesday into stiff resistance.
Conservative Republicans pushed back against it, the White House swiftly rejected the approach and House Minority Leader Nancy Pelosi (D-San Francisco) called it “dead on arrival.”
Boehner’s decision, shared behind closed doors during a morning meeting of rank-and-file lawmakers, was an abrupt shift after the Ohio Republican and President Obama had substantially narrowed their differences in talks that both sides described as optimistic. The vote could come as soon as Thursday.
By calling up legislation for a vote, the speaker is trying to build momentum toward a resolution as talks over a broader deficit deal continue. He wants to avoid having his party be seen as causing a tax hike in the new year on most Americans, which would happen if no agreement is reached.
PHOTOS: Notable moments of the 2012 presidential election
"We have to stop whatever tax rate increases we can," the speaker told his troops, according to prepared remarks from a source familiar with the talk, but not authorized to disclose it. "In the absence of an alternative, as of this morning, a modified Plan B is the plan. At the same time we're moving on Plan B, we're leaving the door wide open for something better."
The speaker made it clear he is not cutting off talks with Obama as they continue to pursue a deficit-reduction package to avert automatic tax hikes and spending cuts in the new year. He and the president spoke by phone late Monday after a morning meeting at the White House.
White House Press Secretary Jay Carney dismissed the speaker’s Plan B in a statement, saying it “can’t pass the Senate and therefore will not protect middle class families." He added that Obama "is not willing to accept a deal that doesn’t ask enough of the very wealthiest in taxes and instead shifts the burden to the middle class and seniors."
Obama campaigned on extending tax breaks for household income less than $250,00, although he has suggested raising that threshold to $400,000 in talks this week with Boehner.
Boehner seeks to launch a legislative ping-pong game over the bill between the House and Senate. If he is able to pass his Plan B in the House – which remains uncertain – Republicans expect the Senate, controlled by Democrats, would likely amend the bill to reflect Obama’s priorities on taxes and stimulus spending on long-term unemployment insurance, and send it back to the lower chamber.
PHOTOS: The best shots from the 2012 campaign
Senate Majority Leader Harry Reid (D-Nev.) said the Boehner bill could not pass either chamber.
As Boehner outlined his strategy Tuesday, conservative Republicans bristled at being asked to raise the highest tax rates, now at 35%, to 39.6% for those earning more than $1 million. Tax rates on capital gains and dividends would also rise on those wealthy households.
“I hate it. I hate it,” said Rep. Jason Chaffetz (R-Utah), an outspoken leader of House conservatives. But he did not say he would oppose it. “I’m trying to be reasonable. I understand no one person is going to get everything they want.”
Conservatives want more spending cuts in exchange for any new tax revenue – but not the massive automatic spending cuts coming early next year. Plan B would keep those cuts in place.
Freshman Rep. Sean Duffy (R-Wis.) said reaction was mixed as Boehner spoke. “There will be some of us that will say, no, some of us will say, yes,” he said. “This is a reality check, people are trying to grapple with the situation in which we sit right now.”
Democrats, though, were more certain in the outcome, especially because the Boehner proposal would reduce the cost of living adjustment for those who receive government benefits, likely including Social Security, which would be a major concession for the Democratic Party. Obama has offered making that cut, but only in exchange for higher tax rates on households making at least $400,000 a year.
QUIZ: How much do you know about the fiscal cliff?
“I don’t know what the purposes of this Plan B is," Pelosi said as she emerged from a closed-door meeting of the House Democrats. "To find out if Democrats will support that? They won’t."
"Speaker Boehner seems to be walking away," added Maryland Rep. Chris Van Hollen, the House Democrats' point person for discussions of the so-called fiscal cliff. "I know he says he wants to engage in conversation but now he’s doing this unilateral course."
Boehner faces an enormous test in trying to get his Plan B out of the House with his conservative majority. He plans to offer the rank-and-file a chance to make changes to the bill.
“He’s got a difficult hand to play: On the one hand he’s got difficult negotiations and on the other hand he’s got a contentious conference to deal with,” said freshman Rep. Steve Womack (R-Ark.) “He understands what reality is. He understands he’s got a difficult sell ahead of him.”
Follow Politics Now on Twitter and Facebook
[email protected]
Twitter: @LisaMascaroinDC
[email protected]
Twitter: @MikeMemoli