WASHINGTON — The United States looked on track to tumble over the “fiscal cliff” on Monday night, at least for a day, as lawmakers remained reluctant to back last-minute efforts by Senate leaders to avert severe tax increases and spending cuts.
The U.S. House of Representatives said it would not vote on any “fiscal cliff” plan before, pushing a legislative decision into New Year’s Day, when financial markets will be closed, said a Republican aide.
The Senate plan was heavy on tax increases and light on spending cuts, raising concerns that it would repel rank-and-file lawmakers, particularly in the Republican-controlled House.
As Senate Republican leader Mitch McConnell and Vice President Joe Biden kept working on unresolved parts of the deal, there was deep discontent among Senate Democrats.
“The caucus as a whole is not sold” on the proposal, said a Senate Democratic aide. “We just don’t have the votes for it.”
If Congress fails to act, about $600 billion in tax increases and government-wide spending cuts will begin taking effect after midnight, harsh measures that could push the U.S. economy into recession.
But lawmakers could still vote for any deal on New Year’s Day and prevent the worst of the fiscal cliff effect.
Under the Senate plan, those with household income above $450,000 or individual income above $400,000 would be taxed at 39.6 percent, up from 35 percent. Those with lower income would be taxed at the current, reduced tax rates put in place under former President George W. Bush.
The aide said Democrats did not like the $450,000 threshold for raising taxes on the rich — they wanted $250,000 — or the higher threshold for raising estate taxes. Democrats also are upset that there is no agreement yet to put off the first round of $1.2 trillion in automatic spending cuts.
Republicans already are pushing for switching those across-the-board cuts to savings in Medicare and Social Security and threatening to block a debt limit increase in February unless they get their way. But that is a fight that would most likely play out in January and February.
A group of liberal senators met with Senate Majority Leader Harry Reid to register anger with the deal being negotiated by Biden, and some aides were dispirited that the vice president, a fellow Democrat, had gone further than they wanted, just as he did in December 2010 when all Bush tax cuts were extended for two years.
Shortly after the plan emerged, President Barack Obama said agreement was within sight, but he sounded a cautious note.
“There are still issues to resolve, but we’re hopeful that Congress can get it done, but it’s not done,” Obama, a Democrat, said at a White House event.
U.S. stocks rose on the day, with the market closing before the latest news broke about the House not voting. The benchmark Dow Jones industrial average closed up 1.3 percent at 13,104.
It is not the senates job. go home!!! NOW lets just jump to see what is on the other side.. They are so scared that the people will see how great it is.
I agree, you go fire them, I can’t I’m too mad.
We had our chance to fire the lot of them early in November. We failed to do so as many if not most of the incumbents didn’t lose their seat.
Well I tried, I put my name on the line that said other_________
well many were fired…. BUT not enough ..true enough .
Here’s my analogy of the “fiscal cliff”: Think Wile E. Coyote = American Citizens. Acme anvil = Congress. Roadrunner = American Dream
The House will shoot it down ’cause they’d rather everyone’s taxes go up rather than just the elite’s.
Keeps the TP winning their primaries.
Whats wrong? you don’t like paying taxes?? Yet you seem to like telling others too.. Aren’t we special!!!
Ready for a shock: I don’t mind paying more in taxes IF the idiots in DC also rein in the spending. This “fiscal cliff” does just that. And I wouldn’t be surprised if the House doesn’t pass the bill just sent to them from the Senate.
What I was trying to point out previously was the irony of the Tea Smokers in the House. They are against tax hikes, but by refusing to compromise and allowing some tax hikes, the result is MORE tax hikes for more people. So much for being against tax hikes.
Getting there, hey lets wait until the last minute to do something guys…
Brinksmanship.
They will strike some BS deal…both sides will claim a colossal victory. If not, the finger starts pointing at the “bad guys”.
Guess who the bad guys are …
Don’t kid yourself, stop worshiping at the alter of your ideology, they’re both the bad guys.
So glad someone else sees this!
“Good guys” would be paid at the average pay of those for whom they work.
yep but they are in the process of getting a raise thats gonna cost our kids and grand kids 10 billion a year.
You are preaching to the choir. I believe we could “get by” with about half the “government” we have now. What would that save us?
agreed.
Yep they are each one as bad as the next ,but you will never get that thru to the ideologue .
“idea logs” ?
oops.
the house GOP’s
Get it done chumps. Earn your money for a change.
Why does anything need to be done?? Who told you this would be bad for the country??
I believe that letting the middle/lower class tax cuts expire at this time would hurt our continued recovery from recession. I’m not against allowing all the cuts to expire gradually – I just don’t think it would be good today, or rather tomorrow. Both parties need to work together to develop policies that would gradually raise revenue and decrease spending until some semblance of balance is achieved.
You might not have anything at stake, though many people are looking at hundreds to thousands less in income. What may seem insignificant to you or I, may make a huge difference to someone who is struggling just to get by today.
How do they expect anyone to get by on a mere $450,000 per year!?
Some of those $450,000.00 a year surgeons are footing the bill for their son or daughter to become doctors too-you know those people that save our lives sometimes.
Yeah, they will be destitute. Actually for me, I owe my life to Doctors educated in Canada, India, and Iran. I haven’t seen a native US doctor since I was 12.
LOL…My daughter graduated from Pharmacy School with kids from all over the world. Not too many Smiths in the bunch. Super smart and study until they drop!
it’s amazing what a person can accomplish when they aren’t glued to a “reality TV” show. Congratulations to your daughter.
There are more people making that kind of money and working on Wall St., producing nothing, than there are surgeons in the whole country.
And the cuts are?
BINGO!!!!
“postpone for an undetermined period the automatic, across-the-board federal spending cuts in defense and domestic programs.”
They just close their eyes to the credit card problem they have.
Let the PTC expire.
Drama Queens.
This end of the world theory is simply more of the same fear mongering from both parties.
The “Fiscal Cliff” is an illusion dreamed up by politicians to make their constituents pick a side.
The “Fiscal Cliff” is an end to the Bush era tax cuts, higher taxes for most (moderate for lower and middle class steep for the upper echelons. ) and cuts in programs most of us do not ever use, and cuts to defense spending which might finally force our government to bring our troops home from Germany, Japan, and the Philippines.
More likely scenario . is what happened in Massachusetts following prop 2.5. The Commonwealth “magically” found money enough to cover the lost taxes.
While it is overblown by some, what you describe is hardly an illusion. There will be real world consequences. Whether or not they are good or bad (or a bit of both) is a matter of opinion.
“Cliff” implies doom. I say hardly.
Financial rolling hill just doesn’t have the same ring. ;P
The “fiscal cliff “was created when the GOP refused to raise the debt ceiling.
There is no “fiscal cliff” and neither party has passed a budget in over 15 years.
A great deal for those making $400,000 a year or with an estate of $10 million because there are no tax increases. A lousy deal for the working poor because of the tax increase on the payroll tax. A BIG win for Republicans. And the debt ceiling will be another big Republican win because they will force more spending cuts which widens the gulf between middle class and the top 2%.
Please explain how anybody wins in this.
I wish just once folks could see these folks for the scumbags they are both r and d.If it was up to me we would run this hot mess right of the edge.
So how do you think people can see for themselves?
By no longer taking the koolaid that is spoon fed to them by what ever political party they worship at the feet of.
This is a result of one arrogant President and 534 do nothing elected officials all paid by you and me. If this country would wake up and pay it’s bills and quit spending so much we would not be in this situation. The bad thing about this whole mess is that it is not over by a long shot. So why don’t we all call our elected officials and let them know that we are not happy with them.
This is the result of the GOP refusing to raise the debt limit…. Nice try though…
Apparently you do not get the message. We need to quit raising the debt limit and pay down our bills. to me owing .40 on every dollar spent in Washington is a bit much. And if you read my post you would see that i was critical of all our elected officials not just one party.
Because they do not care.
” Republicans would insist on major savings in the Social Security retirement and Medicare healthcare program for the elderly.” Baby boomers might have something to say about that !!!
Losers