Fiscal Cliff Talks Resume After GOP Caves On Social Security Cut (Gotta love the headline)
Fiscal Cliff Talks Resume After GOP Caves On Social Security Cut
Negotiations stalled Saturday night when Minority Leader Mitch McConnell pushed a Social Security benefit cut as a way to offset spending measures including emergency unemployment benefits. Democrats balked, leaked the offer to the media, and Republicans quickly retracted the demand.
That’s allowed talks to resume in earnest, though the parties remain divided over key tax and spending issues including the estate tax, the alternative minimum tax, capital gains tax rates, top-bracket income tax rates, unemployment benefits, Medicare physician payments, the sequester and the debt limit.
Congress created the fiscal cliff — including the expiration of the Bush tax cuts, the sequester, and other measures — intentionally, and members have insisted for months that it would force both parties to agree to a less austere, bipartisan deficit reduction plan.
But by retracting the Social Security ask, Republicans bought themselves a few more hours to cut a deal.