Tue Jan 1, 2013, 04:01 AM
cal04 (41,025 posts)
President Obama insisted on sequester buy down
Fiscal cliff negotiations between the White House and Congressional leaders involved late-night discussions in the Oval Office and an ultimate hardline from President Barack Obama, according to a source familiar with the process.
The source said it was the president who insisted the final deal include a pay down on the sequester and a tax increase that hit at least individuals making $400,000 a year and $450,000 for households. That’s where the deal ended up.
On Monday, Republicans agreed to a plan that raises $620 billion in revenue over 10 years and makes a $24 billion down payment on deficit reduction through a combination of revenue and spending cuts – also a priority for the president. Those spending cuts have been pre-determined and will be evenly divided between defense and non-defense areas.
Senate Republicans brought their first offer: allowing income taxes to rise for households earning $750,000 or more – significantly higher than the $450,000 threshold the Democrats won in the end; indexing Social Security to CPI; keeping the estate tax at the current rate; paying for the sequester by means-testing Medicare. The offer included no extension of unemployment insurance and no tax credits for low income people and for education, a source familiar with the discussions said. The final deal includes both.
7 replies, 1891 views
Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
President Obama insisted on sequester buy down (Original post)
Response to cal04 (Original post)
Tue Jan 1, 2013, 04:12 AM
JDPriestly (56,818 posts)
1. I'm still not clear about what happened to the chained CPI and various pensions, Social Security,
SSI, etc. What happened on that? Or is that yet to be decided?