Republicans Make Counterproposal in Fiscal Negotiations
Republican Congressional leaders presented their counterproposal with regards to President Barack Obama’s deficit reduction plan. They want more spending cuts with $800 billion in new taxes over the next decade.
The Republicans released their proposal to avoid the $600 billion in automatic tax increases and spending cuts that would take effect next year. If a solution is not found before the year ends, the combined spending cuts and tax increases could lead the nation into another recession.
The Republicans said that their move was more towards the center instead of their usual position established last year when they passed the House Republican budget that contained changes to the Medicaid and Medicare as well as huge domestic spending cuts.
President Obama’s proposal, which was forwarded to the Congressional leaders through Treasury Secretary Timothy Geithner last week, was the same as the White house plan released a year ago. The Republican offer on taxes that was released Monday was similar to Speaker John Boehner’s proposal during the private talks with the president last year.
The proposal included several Republican concessions. The new revenue would come from increases in taxes and not from increased economic growth. The plan would also extend the Bush-era tax cuts for wealthy Americans, which is something that President Obama said he will not agree to.
The offer was signed by the Republican House leadership, which included Representative Paul D. Ryan. Both sides have already placed their bids regarding the fiscal cliff. The Republican leaders have rejected the White House’s offer and said that the president should come out with a plan that they considered more realistic.
Boehner said that the Republican proposal is a credible one that deserves to be considered by the White House. The White House said that the Republican offer doesn’t have the test of balance. It wants to lower the rates for the rich and let the middle class pay for it.