Fiscal Cliff Talks Hit Wall over Tax Increases
White House and Republicans leaders have less than a month to come up with an agreement to deal with the fiscal cliff. Both sides were unwilling to make compromises Sunday as they gave out warnings that they might not be able to reach a deal to stop the large tax increases and automatic spending cuts that could lead the nation into recession.
After several private meetings last week, senior negotiators for the White House and the Republicans accused each other of stubbornness. They both demand from each other to concede on how much to increase taxes on the rich.
Treasury Secretary Timothy F. Geithner rejected the Republican’s proposal of amending the tax code that would limit deductions that benefit the rich. Geithner insisted that the wealthy must pay higher tax rates and that Republicans must come up with a plan that meets that requirement.
It has been the pattern over the past two years where both sides hit a stalemate, only to come up with an agreement later on. Lawmakers and congressional aides have been saying at present that a deal is not in the horizon in time to avoid the fiscal cliff.
Geithner went to five Sunday morning news shows while Boehner went to one. President Barack Obama was on his first domestic trip since he won his re-election bid. He went to the Philadelphia suburbs Friday where he urged Republicans to compromise.
This week, President Obama will meet with governors and make a speech to the Business Roundtable, which is a lobby group that represents big business. He wants lawmakers to support his tax proposals. Boehner is also set to meet with governors and rally small-business owners to go against the tax increases proposed by the White House.
The increase of taxes on the wealthy has been the main topic of discussion with regards to the fiscal cliff. This would be a topic to be discussed over the next decade.