Boehner says debt limit should be part of talks

House Speaker John Boehner insisted on Friday that any deal with President Barack Obama to avert the so-called fiscal cliff must include lower tax rates, eliminating special interest loopholes and reining in government-benefit programs.
Associated Press
Nov 10, 2012

"2013 should be the year we begin to solve our debt through tax reform and entitlement reform," Boehner said.

Boehner and Obama have taken the initial steps in high-stakes negotiations over how to deal with expiring Bush-era tax cuts and automatic spending cuts to defense and domestic programs that economists warn could plunge the nation into another recession.

Boehner, Obama and Senate leaders face a Jan. 2 deadline to reach an agreement or at least come up with a framework to deal with the issue early next year.

Boehner expressed a degree of optimism about resolving the issues and ensuring that his sometimes reluctant GOP rank and file will back any deal.

"When the president and I have come to an agreement, there's been no problem getting it passed in the House," Boehner said.

The speaker declined to discuss specifics on deficit targets or what tax loopholes to eliminate though he cited both corporate and individual.

"I don't want to box myself in. I don't want to box anyone else in," he said.

Boehner indicated that increasing the nation's borrowing authority, which was a divisive issue in August 2011 talks, should be part of any talks in the coming weeks on avoiding the fiscal cliff. The government has said the nation won't reach the debt limit until the spring.

"It's an issue that's going to have to be addressed, sooner rather than later," he said.

Boehner said he had a brief, cordial conversation with Obama earlier in the week and reiterated that the president needs to lead on the negotiations.

Democrats have resisted including entitlement programs such as Medicare and Social Security in any deficit-cutting deal. Senate Majority Leader Harry Reid, D-Nev., said earlier this week they were unwilling to make changes in Social Security.

Boehner insisted that the programs need to be on the table.

"It's not like there is money in Social Security and Medicare" trust fund, Boehner said. "This has to be dealt with."

The Ohio Republican, reflecting the sentiment of his caucus, said increasing the maximum 35 percent tax rate on high-income earners cannot be part of the deal. Boehner did signal that he was open to eliminating loopholes.

"The problem with raising tax rates on wealthy Americans is that more than half of them are small business owners," Boehner said. "Raising tax rates will slow down our ability to create the jobs that everyone says they want."

The Republican leader acknowledged that his party faces several roadblocks after Obama won a second term and the GOP lost seats in both the House and the Senate.

"It's clear that as a political party we've got some work to do," he said.

Republicans fared poorly with Hispanic voters. The fastest growing minority group went heavily for Democrats, backing Obama by more than 70 percent. Boehner signaled a willingness to tackle immigration legislation next year.

"What I'm talking about is a common sense, step-by-step approach, would secure our borders, allow us to enforce the laws, and fix a broken immigration system," he said. "But again on an issue this big, the president has to lead."

 

Comments

Randy_Marsh

We'll That escalated quickly.

goofus

Challenge the Marine Corps? Heavens no, we might need them for South Carolina has a secession petition circulating.
John I hope the grammar lesson was an immediate response and a more rational refudiation shall be forth coming!!!!

John Harville

Goof. Do you mean 'reFudiation' Sarah Palin-style?
Or the more common 'rePudiation' most literate Americans use? ie "rejecting or disowning or disclaiming as invalid".
Succession is an act of ascending as to the throne - or the presidency. Elizabeth I signed an Act of Succession naming her cousin King James VI of Scotland as King James I of Britain, Scotland and Ireland.
South Carolina passed an "Act of Secession" thereby leaving the United States before firing on Fort Sumter.
Texas citizens have presented the necessary 25,000 signatures to the White House which has 30 days to respond. Gov. Rick Perry and others are opposed - but he could end up as President of the Republic of Texas - Revisited. But the President can withhold sECession until Texas pays its federal debts.
As for a reFudiation? I just can't put it in Palinish.

Contango

@ John Harville:

Yea, yea, yea, we all know what he meant.

The Dems are the party of economically ignorant and life's losers who know how to vote for cash and prizes - for which the rich liberal elites are grateful.

Where are those Cape Cod low income housing projects?

This country was built on debt. Mr. Hamilton encouraged the colonies to join in return for having their war debt financed by the national govt.

Secession ain't gonna happen. Fugitaboutit.

goofus

Just wondering if you are a grammar teacher, it seems really important to you. LOL the country is approaching disaster and you worry about grammatical context. Must be a bot thing, harrass and demean.

mikel

Updated 2:44 p.m. ET - "President Barack Obama claimed a broad mandate for his vision on taxes at his first news conference since being re-elected, demanding that his negotiations with Congress yield a specific plan that results in a higher tax burden for the wealthiest Americans."

yes, please tell us just what programs YOU PLAN to eliminate or reduce spending to! even the simplist of minds knows that you can raise taxes all you want but if you don't cut anything you gain nothing.

The Big Dog's back

332 to 206. MANDATE!

goofus

Hey, Obozo won the election, what are the Barry Bots still doing here? Wondering, are Rahm's army gonna hang around to defend Barry's sins and transgressions?

John Harville

Hey. Romnuts LOST. Why are they still hangin' around? Oh... Ohio is getting signatures to secede too - then the Romnuts will be inconsequential.

goofus

Like all good leftists, he will cut defense spending and the military, but not his domestic issues.

Contango

Reads like Mr. Obama is intent on doubling down on taxes and closing loopholes to the tune of $1.6T.

Today, the Market reacted accordingly down 185 pts.

The Market has declined 5% since the election. Investors are voting with their dollars.

I think this is gonna get ugly; took some profits off the table and shifted some of it into more (GLD) yesterday.

I wouldn't rule out an economic recession next yr.

The Big Dog's back

Bonkers I tell ya. Bonkers!

The Big Dog's back

Voting with their dollars? Repubs spent $4.35 per vote more than the Dems did and still LOST!

Randy_Marsh

Hows your 401k dog? I would say the voters and anyone else is showing thier true feeling getting out of the market while they can. Get your barrel ready, I have a feeling you would enjoy going over the cliff.

Contango

Oops.

It's being reported that the Federal Housing Authority (FHA) is almost broke and may have to ask for a govt. bailout.

Guess that those sub-prime loans that they've been makin' are starting to catch up with them.

And hasn't the Admin. been tellin' us that housing is improving????

Mr. Obama had better lower the bar for rich again and tax 'em! When will $50K be the new $250K?

http://online.wsj.com/article/SB...

coasterfan

Romney lost single women by 38 points, lost BOTH of his home states, and - get this - earned less of the Mormon vote than George W.Bush. It seems that the more people knew Mitt, the less they wanted him to be president.

Contango

The fact is: It's hard to compete against Barack "Santa Claus" Obama with his goody bag of cash and prizes financed with printed and borrowed money.

kURTje

All the Ed Bassmaster types can leave my country. That would be great to get rid of cranky oldsters on SSI. It is a hoot to read from all the criers here. Please don't stop! Later today my friends & I can laugh more at break time. Please.....keep this up! AaHaha. Always worry about self only - that's the American way.

goofus

The Department of Labor has announced that new jobless claims rose by a staggering 78,000 in the first week after the election, reaching a seasonally-adjusted total of 439,000. Over the past year, and in the weeks leading up to the election, jobless claims were said to be declining, dipping as low as 339,000, with the media proclaiming that they had reached the "lowest level in more than four years." Now, suddenly, the news seems far less rosy.

From the Department of Labor press release this morning:

In the week ending November 10, the advance figure for seasonally adjusted initial claims was 439,000, an increase of 78,000 from the previous week's revised figure of 361,000. The 4-week moving average was 383,750, an increase of 11,750 from the previous week's revised average of 372,000.

Some of the new claims, especially in New Jersey, were due to Hurricane Sandy--but these were offset by a decline in claims filed in New York. The highest numbers of new filings came from Pennsylvania and Ohio, where there were thousands of layoffs in the construction, manufacturing, and automobile industries.

Both states had been targeted by the presidential campaigns. President Obama highlighted his record of job creation in Ohio in particular, focusing on the automobile industry. The state reported 6,450 new jobless claims in the week after the election--second-highest after Pennsylvania, which recorded 7,766 new claims.

John Harville

Buckle Up on the Republican Bus over the cliff. All the cuts won't be implemented instantaneously and the country can be saved by the President and the multifaceted Congress while the Republicants try to filibuster themselves out of existence. Oh... but now there are enough BOTvotes to change the Cloture Rule - and the new Dems may just force the Republicants to actually filibuster. Happy Days are here again!

Randy_Marsh

So the guy who signed the bill that caused the fiscal cliff is now the one to save us? Did i get that right? Thanks thats the dumbest things i have read today.

Contango

@ John Harville:

"Saved" how?

The U.S. is facing a fifth yr. of $1T deficits. Taxin' the rich ain't gonna do it.

Mr. Obama's job's plan? How many of those over inflated $250K "shovel ready jobs" can this country afford?

Remember the first "stimulus": "Shovel ready wasn't as...uh shovel ready as we thought." What a card!

goofus

Hey Sandusky Register, just noticed wierdos can put their responses any where they want. Hmmmm just like it took seconds instead of days to formulate a response

goofus
OSUBuckeye59

My $0.02 worth on the impending fiscal cliff . . . the POTUS, House and Senate will not be able to reach an agreement before the end of the year, when the Budget Control Act of 2011 is set to kick in: the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to the Affordable Care Act. At the same time, the spending cuts everybody (POTUS, House & Senate) agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect. According to Barron's, over 1,000 government programs - including the defense budget and Medicare are in line for "deep, automatic cuts."

There are at least 3 options our "leaders" could pursue:
#1) Let the current policy scheduled for the beginning of 2013 – which features a number of tax increases and spending cuts that are expected to weigh heavily on growth and possibly drive the economy back into a recession – go into effect. The plus side: the deficit, as a percentage of GDP, would be cut in half.
#2) Cancel some or all of the scheduled tax increases and spending cuts, which would add to the deficit and increase the odds that the United States could face a crisis similar to that which is occurring in Europe. The flip side of this, of course, is that the United States' debt will continue to grow.
#3) Take a middle course, opting for an approach that would address the budget issues to a limited extent, but that would have a more modest impact on growth.

The non-partisan Congressional Budget Office (CBO) estimates that if they take the middle ground – extending the Bush-era tax cuts but cancelling the automatic spending cuts – the result, in the short term, would be modest growth but no major economic hit. If the current laws slated for 2013 go into effect, the impact on the economy "could" be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit by an estimated $560 billion, the CBO estimates that the policies set to go into effect would cut gross domestic product (GDP) by four percentage points in 2013, sending the economy into a recession. At the same time, it predicts unemployment would rise by almost a full percentage point, with a loss of about two million jobs. A Wall St. Journal article from May 16, 2012 estimated the following impact in dollar terms: “In all, according to an analysis by J.P. Morgan economist Michael Feroli, $280 billion would be pulled out of the economy by the sunsetting of the Bush tax cuts; $125 million from the expiration of the Obama payroll-tax holiday; $40 million from the expiration of emergency unemployment benefits; and $98 billion from Budget Control Act spending cuts. In all, the tax increases and spending cuts make up about 3.5% of GDP, with the Bush tax cuts making up about half of that, according to the J.P. Morgan report.” And we're already seeing the effects on the economy as a result of the unknown future: households and businesses, more so businesses, have begun changing their spending in anticipation of the changes. On the business side, unemployment is rising and will continue to rise. Businesses are laying off employees now to have them "off the books" come the New Year. And "Black Friday" sales next week will give a good indication of consumer confidence.

My guess is after the first of the year when Obama and the new Congress are sworn in, they'll all agree on a compromise package, making it retroactive to January 1. And both major parties will then derive their 2014 mid-term election "talking points" from what each felt America (translation: their party plank) lost out on in the compromise. Right now we're watching the positioning leading up to the 2014 mid-term elections.

The American population our federally-elected officials supposedly serve? We're merely pawns in a federal pi$$ing contest. And I'm tired of Obama, Boehner, Reid and the rest pi$$ing on my feet, telling me it's raining.

Randy_Marsh

John had it right in one respect, They created a situation that a "Savior" can swoop in give them all free phones and prizes and "Save" them. There is no long term fix as long as the spendaholics are voted in. The fiscal cliff is only a sign to come, When the banks will no longer buy bonds and monetarize the debt any longer then the real cliff starts and we get to see how great the keynsian ideal is. My bet is less than 4 years.

OSUBuckeye59

@Randy_March,

To be fair, there are plenty of spendaholics on both sides of the aisle. That's how they get elected & then re-elected, by promising and delivering "pork" to their home state. As far as our government bonds, we're still considered one of the safest bets to buy into. Sure, we need to reduce our debt and curb spending. And just as we've survived for 236 years, we'll certainly survive the next 4 years...and beyond. It's not going to be pretty, or at least I hope Obama has a big enough pair to make it not pretty as we need compromises to be made by both major parties.

Randy_Marsh

@OSU
We can blame both partys for it. The thing is they created it and are now our saviors? Next year when we are sitting in another recession and they lower our credit rating once again that should just about do it for our currency,Just the interest on the debt will become the largest expenditure the government has by 2020. http://money.cnn.com/2011/02/02/...
There is no savior, We are being sold into debt by these idiots.

OSUBuckeye59

@Randy,

I think we agree. And I don't believe any of them are saviors. When I voted this year, for me it truly was a vote of best of the worst. I really didn't believe either Romney or Obama deserved to be nominated. And I'm not impressed by most of our federally elected officials . . . both sides of the aisle. Just as publicly-traded companies are accountable to their majority shareholders, so, too, our federally-elected officials seem only to be accountable to their corporate donors, lobbyists and party.

Randy_Marsh

@OSU
I did not vote for either as my vote should not be construed as a "Mandate" for either party to spend more and continue their march into war and debt. Until people wake up and vote them out it will continue, But most are to politically divided they actually think their party is going to save them.

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