Boehner says Obama pushing U.S. toward "fiscal cliff"

WASHINGTON Fri Dec 7, 2012 5:28pm EST

1 of 8. U.S. House Speaker John Boehner (R-OH) speaks to the media outside his office on Capitol Hill in Washington, December 7, 2012.

Credit: Reuters/Yuri Gripas

Related Topics


Under the Iron Dome

Sirens sound as rockets land deep inside Israel.  Slideshow 

WASHINGTON (Reuters) - Republican House Speaker John Boehner accused U.S. President Barack Obama of pushing the country toward the "fiscal cliff" on Friday and of wasting another week without making progress in talks.

With three weeks left before a combination of steep tax hikes and deep spending cuts kicks in unless Congress intervenes, Boehner said the administration had adopted a "my way or the highway" approach and was engaging in reckless talk about going over the cliff.

"This isn't a progress report because there is no progress to report," Boehner told reporters at the Capitol. "The president has adopted a deliberate strategy to slow-walk our economy right to the edge of the fiscal cliff."

The bleak report from Boehner prolonged the economic uncertainty surrounding the cliff, which has already riled markets, slowed down business decisions and disrupted the budgeting processes for government at all levels across the country.

Economists say going over the cliff could throw the economy back into a recession.

Obama has called for extending the tax cuts set to expire on December 31 for middle-class taxpayers but letting them rise for the wealthiest 2 percent of Americans. Boehner and Republicans oppose his plan, preferring to find new revenues by closing loopholes and reducing deductions.

Boehner characterized as "reckless talk" Treasury Secretary Timothy Geithner's comment this week that the administration was prepared to go over the cliff if tax rates for the wealthiest were not increased.

The downbeat assessment was in line with what Boehner has offered for weeks as the two sides hold their ground on Obama's call for raising tax rates and Republican calls for cuts in entitlements like the Medicare and Medicaid healthcare programs for seniors and the poor.

Congressional aides said there were no plans for meetings on the issue this weekend. Future talks will be limited to Boehner and Obama and their staffs as the deadline approached, aides said.

Boehner said his telephone conversation with Obama on Wednesday and renewed staff talks on Thursday had not made any progress.


"The phone call was pleasant, but it was just more of the same. Even the conversations the staff had yesterday were just more of the same. It's time for the president, if he's serious, to come back to us with a counteroffer," Boehner said.

Boehner and the House of Representatives leadership submitted their terms for a deal to the White House on Monday, after Obama offered his opening proposal last week.

The plans from both sides would cut deficits by more than $4 trillion over the next 10 years but differ on how to get there. Republicans want more drastic spending cuts in entitlement programs, while Obama wants to raise more revenue with tax increases and to boost some spending to spur the sluggish economy.

Vice President Joe Biden said the administration was prepared to consider "any serious offer" from Republicans and "theoretically" could negotiate how high tax rates must rise.

"The top brackets have to go up," Biden said during a visit to a Virginia diner. "Theoretically, we can negotiate how far up, but we think it should go - the top rate should go to 39.6 percent."

Boehner also did not rule out a compromise on raising tax rates on the richest Americans. Potential options include boosting the rates above the current 35 percent but short of the 39.6 percent rate proposed by Obama, or raising the income threshold higher than the $250,000 sought by the White House.

"There are a lot of things that are possible to put the revenue that the president seeks on the table," Boehner said.

With polling showing most Americans would blame Republicans if the country goes off the cliff, more House Republicans have been urging Boehner to get an agreement quickly, even if it means tax hikes for the wealthiest.

But Boehner could have a challenge selling an eventual agreement to conservative Tea Party sympathizers in the House, some of whom are openly critical of the concessions the speaker has already made.

Boehner has been under fire from the right for proposing $800 billion in new revenue and for removing from House committees four conservative Republican lawmakers who were seen as bucking the leadership.

"When he couples this conservative purging with a negotiated tax increase of $800 billion, we are starting to see more and more signs that he's not dedicated to fiscally conservative beliefs," Andrew Roth of the influential anti-tax group Club for Growth told Fox News.

Once the question of whether to raise tax rates is resolved, the two sides will try to figure out a way to deal with the spending cuts, perhaps postponing or trimming them. They will also work toward a longer-term deficit-reduction package to be taken up after the new Congress is sworn in next month.

At a news conference on Friday, House Democratic leader Nancy Pelosi threw her support behind a White House proposal to give Obama power to raise U.S. borrowing authority without legislation from Congress.

The debt ceiling issue, which provoked a 2011 showdown that led to a downgrade of the U.S. credit rating, has become entwined in the fiscal cliff debate. The debt limit will need to be raised in the next few months.

"The White House and House Democrats are on the same page on the debt ceiling," Pelosi said.

(Additional reporting by Susan Heavey, Rachelle Younglai, David Lawder and Richard Cowan; Writing by John Whitesides; Editing by Eric Beech)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see
Comments (101)
SayHey wrote:
Tax hikes now, spending cuts later (which never happen). Same old, same old.

Dec 07, 2012 9:44am EST  --  Report as abuse
Non-Moocher wrote:
Obama’s clever legalese can dupe the average voter, but it will not work on Boehner.

Dec 07, 2012 10:09am EST  --  Report as abuse
morbas wrote:
The citizen needs to know the truth about our national budgets, Federal, State and Municipality. Municipal governments consist of county, city, and towns. National attention is focused on federal budget issues; while the federal budget is $2.3Trilllion, the expenditure is $3.8Trillion. Federal plus State plus Municipality is a heavenly $8.06Trillion. The sum total of all Personal Income is $12.98Trillion. (Trillion is 1 Million Million dollars). Thus our governments are operating at 62% of total USA personal income. The taxation rate visible to the citizen is fraction of this, as business taxes are passed on as production costs, as industry must do this to balance their budgets, or go broke. With a centralized Banking System, the federal government can print more money than collected in revenue, the states and municipalities cannot. Taxation at state and municipality is less progressive than federal, which burdens lowest income levels with the highest effective rate; and the upper 2% with the lowest effective rate. Thus, municipalities borrow more in a recession, as the lower quin-tiles wages are more largely diminished. We have municipal city’s falling into bankruptcy. The solution is simple, fairness requires the top quintile pay more taxes. And here in is a mathematical solution. Incomes less than $20,000 (poverty) are not taxed, surtax is used for $20,000 through $200,000money at 30%, and surtax is used for above $200,000 money at 90%. Couples freely share incomes. All other forms of taxation are not allowed, to include business tax. With this taxation method, the citizen tax rate is less than the 2011 federal income tax for incomes less than $250,000. This with the bonus of no state and municipality taxation.
Oh but the gentile aristocracy objects, after all they have invested millions in lobbying to reduce the 1960 91.5% at 400K to the present 15% at infinity, while all lower incomes top rate is 35%. And Norquist, neither elected nor popular has effectively filibustered corrective revenue measures. To the founders of the Constitution he is the sum of all fears.
The presidents plan is a small step in the right direction.

Dec 07, 2012 10:21am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.