Wednesday, April 23, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

No budging as fiscal cliff talks appear stalled

By
From page A1 | December 13, 2012 | 1 Comment

WASHINGTON — Republicans aren’t budging on tax rates, and Democrats are resisting steps like raising the eligibility age for Medicare. Negotiations on averting a year-end fiscal train wreck combining big automatic tax hikes and sweeping spending cuts again appear stalled.

There are less than three weeks before the government could careen off this “fiscal cliff,” but the chief GOP negotiator, House Speaker John Boehner, R-Ohio, said Wednesday that “serious differences” remain between him and President Barack Obama after an exchange of offers and a pair of conversations this week.

Boehner spoke after a closed-door meeting with fellow GOP lawmakers in which he advised them not to make plans for the week after Christmas.

Neither side has given much ground, and his exchange of proposals with Obama seemed to generate hard feelings more than progress. The White House has slightly reduced its demands on taxes – from $1.6 trillion over a decade to $1.4 trillion – but isn’t yielding on demands that rates rise for wealthier earners.

Boehner responded with an offer very much like one he gave the White House more than a week ago that offered $800 billion in new revenue, half of Obama’s demand. Boehner is also pressing for an increase in the Medicare eligibility age and a stingier cost-of-living adjustment for Social Security recipients.

Boehner spokesman Michael Steel said the two men did not have any follow-up talks Wednesday.

“There were some offers that were exchanged back and forth yesterday, and the president and I had a pretty frank conversation about just how far apart we are,” Boehner said after his meeting with fellow Republican lawmakers. “He said it’s looking like trench warfare,” said Rep. John J. Duncan Jr., R-Tenn., referring to Boehner.

Federal Reserve Chairman Ben Bernanke weighed in as well. He said, “Clearly, the fiscal cliff is having effects on the economy,” the uncertainty affecting consumer and business confidence and leading businesses to cut back on investment.

There is increasing concern about a Dec. 31 deadline to stop the expiration of Bush-era tax cuts and the start of across-the-board spending cuts that are the result of Washington’s failure to complete a deficit-reduction deal last year. Even if an agreement can be reached, the halting pace of negotiations is jeopardizing chances that it could be written into proper legislative form and passed through both House and Senate before the new Congress convenes on Jan. 3.

Both sides accuse the other of slow-walking the talks. Democrats say Boehner is unwilling to crack on the key issue of raising tax rates on family income over $250,000 because he’s afraid of a revolt on his right flank and from younger, ambitious members of his leadership team.

“I do have an increasing concern that the speaker … is trying to string this out until January 3rd because that’s when he would be re-elected as speaker,” Rep. Chris Van Hollen of Maryland, ranking Democrat on the House Budget Committee, told The Associated Press. “And I think he’s nervous that if he can’t get a majority of his House Republican members to support a reasonable agreement that that could put his speakership election in jeopardy. And so that might cause him to try and string these talks.”

Many conservatives say they would oppose a deficit-cutting package negotiated by Boehner that included higher tax rates.

“I’ll say no, because the focus has got to be on economic growth,” said Rep. Jim Jordan, R-Ohio. “The simple fact is raising taxes is not going to grow our economy.”

Others wouldn’t rule it out completely.

“If there’s real cuts in spending, if there’s real reform of entitlement programs, I think all of us would have to reconsider our position,” Rep. Raul Labrador, R-Idaho, said Wednesday. “But the problem is, I don’t see real cuts, real cuts. I’m not saying yes and I’m not saying no.”

Liberal Democrats are trying to pull Obama in the opposite direction on Medicare and Social Security. Eighteen months ago, Obama had all but agreed to an increase in the retirement age and a less generous inflation adjustment for calculating Social Security COLAs.

House Minority Leader Nancy Pelosi warned Republicans against insisting on raising the Medicare eligibility age as part of any deal.

“Don’t go there,” Pelosi said on “CBS This Morning.” She said raising the retirement age wouldn’t contribute much savings toward an agreement in the short term, adding, “Is it just a trophy that the Republicans want to take home?”

Raising the Medicare age from 65 to 67 could cut Medicare costs by $162 billion over a decade, according to a Congressional Budget Office estimate last year. But by 2035, it would cut Medicare’s projected budget by 7 percent.

That estimate, however, assumes the eligibility age would increase rather abruptly and hit people just about to retire. Republicans have instead in the past that their Medicare proposals won’t affect now those 55 and above.

Democrats are also pushing back against a GOP plan to reduce Social Security cost-of-living adjustments, another step back from where Obama and Boehner were just 18 months ago.

“Quite frankly, Social Security is off the table,” said Rep. Joe Crowley, D-N.Y.

The backtracking has Republicans fuming that Obama campaigned on a “balanced” fiscal solution but now is unwilling to pair tax increases with politically painful cuts to Medicare and other popular programs.

“The president and his allies have taken so many things off the table the only thing left is the varnish,” said Senate Minority Leader Mitch McConnell, R-Ky.

But in an ABC interview Tuesday, Obama did not reject a Republican call to raise the age of Medicare eligibility from 65 to 67. The proposal is “something that’s been floated,” Obama said, not mentioning that he had tacitly agreed to it in the deficit-reduction talks with Boehner more than a year ago that ended in failure.

“When you look at the evidence, it’s not clear that it actually saves a lot of money,” Obama said. “But what I’ve said is, let’s look at every avenue, because what is true is we need to strengthen Social Security, we need to strengthen Medicare for future generations, the current path is not sustainable because we’ve got an aging population and health care costs are shooting up so quickly.”

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | 1 comment

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • pornacDecember 13, 2012 - 7:16 am

    I want to sacrifice so the rich can get richer. It only seems fair to me. After all, I only pay taxes for them.

    Reply | Report abusive comment
.

Solano News

Delta barriers no longer needed

By Barry Eberling | From Page: A1

 
 
Supervisors voice concern on state Delta plans

By Barry Eberling | From Page: A1 | Gallery

 
Dental clinic coming Friday, Saturday

By Barry Eberling | From Page: A3, 4 Comments

 
Rotarians talk about running clinic to help Haitians

By Ian Thompson | From Page: A3 | Gallery

 
Fairfield-Suisun Sewer District eyes new auditor

By Ryan McCarthy | From Page: A4

 
County honors Purple Heart recipients

By Barry Eberling | From Page: A6

 
Solano recognizes 1,300-strong volunteer corps

By Barry Eberling | From Page: A6

 
Highway 12 night work scheduled in Delta

By Barry Eberling | From Page: A7

 
Kids fishing derby in Fairfield is part of Earth Day

By Ryan McCarthy | From Page: A7

 
Garamendi to host open house at Fairfield office

By Ryan McCarthy | From Page: A7

 
County approves Icon agreements

By Barry Eberling | From Page: B9

 
Ceremony set to break ground for Suisun City Walmart

By Amy Maginnis-Honey | From Page: B9, 19 Comments | Gallery

Dutch Bros. opening with free drinks

By Barry Eberling | From Page: B9, 8 Comments

 
Mustangs and More event moved back to October

By Ian Thompson | From Page: A10

Museum readies to host Sallie Fox Day in Vacaville

By Amy Maginnis-Honey | From Page: A10, 1 Comment

 
Golf tournament to raise funds for children

By Barry Eberling | From Page: A10, 1 Comment

Rotary club to host clay shooting derby

By Susan Winlow | From Page: A11

 
Ghost Walk returns to Suisun City

By Amy Maginnis-Honey | From Page: A11

Penalty decision looms in Winters homicide case

By Lauren Keene | From Page: A11

 
NAMI talk on reducing mental health stigma

By Barry Eberling | From Page: A11

 
.

US / World

Michigan affirmative ban is OK, Supreme Court says

By The Associated Press | From Page: A1

 
In Internet TV case, justices show concern

By The Associated Press | From Page: A1

GOP candidate releases education policy overview

By The Associated Press | From Page: A12

 
Analysis: Putin likely to ignore West on Ukraine

By The Associated Press | From Page: A14

Biden: Russia must ‘stop talking and start acting’

By The Associated Press | From Page: A14

 
Most Sherpas decide to leave Everest for season

By The Associated Press | From Page: A14

Grieving borrowers told to repay student loan

By The Associated Press | From Page: A14

 
Jet stowaway at hospital; security issues linger

By The Associated Press | From Page: A14

SKorea ferry toll hits 146 as search gets tougher

By The Associated Press | From Page: A14

 
Ukraine orders new ‘anti-terror’ operation

By The Associated Press | From Page: A14

In Ukraine’s east, mayor held hostage by insurgent

By The Associated Press | From Page: A14

 
Acts of bravery emerge from pilloried ship crew

By The Associated Press | From Page: A14

‘Piles and piles’ of bodies in S. Sudan slaughter

By The Associated Press | From Page: A14

 
FedEx sued over deadly California bus crash

By The Associated Press | From Page: A14

Obama views mudslide scene, mourns with survivors

By The Associated Press | From Page: A14

 
IRS awards bonuses to 1,100 who owe back taxes

By The Associated Press | From Page: A15, 3 Comments

.

Opinion

 
Editorial cartoons for April 23, 2014

By Daily Republic Syndicated Content | From Page: A13

 

Groundwater becomes next big California fight

By Thomas Elias | From Page: A13

 
Fairfield’s main problem is the mayor

By Letter to the Editor | From Page: A13, 6 Comments

.

Living

Solving and resolving life’s problems

By Barton Goldsmith | From Page: A2

 
Today in History for April 23, 2014

By The Associated Press | From Page: A2

Community Calendar: April 23, 2014

By Susan Hiland | From Page: A2

 
 
A healthy take on the very not healthy Scotch egg

By The Associated Press | From Page: B6

How can I get my 12-year-old grandson to sleep in his own bed?

By Kathy Mitchell and Marcy Sugar | From Page: B7

 
Horoscopes for April 23, 2014

By Holiday Mathis | From Page: B7

.

Entertainment

DeGeneres making design series for HGTV

By The Associated Press | From Page: A9

 
Discovery to chronicle Everest avalanche

By The Associated Press | From Page: A9

Bieber seeks delay in Fla. DUI trial

By The Associated Press | From Page: A9

 
Bon Jovi helps open low-income housing in Philly

By The Associated Press | From Page: A9, 1 Comment

TVGrid

By Daily Republic Syndicated Content | From Page: A11

 
.

Sports

5 Fairfield runners finish Boston Marathon

By Daily Republic staff | From Page: B1

 
Sharks beat Kings 4-3 in OT, take 3-0 series lead

By The Associated Press | From Page: B1 | Gallery

Prep swimming update: Postseason looms on horizon

By Paul Farmer | From Page: B1 | Gallery

 
SCC softball ends regular season with 29 straight wins

By Brian Arnold | From Page: B1 | Gallery

Seahawks acquire QB Terrelle Pryor

By The Associated Press | From Page: B2

 
NFL playoff game to air on ESPN for 1st time

By The Associated Press | From Page: B2

MLB suspends 4 after Brewers-Pirates brawl

By The Associated Press | From Page: B2

 
Djokovic: Wrist better, will try to play in Madrid

By The Associated Press | From Page: B2

Armstrong coach Bruyneel banned for 10 years

By The Associated Press | From Page: B2

 
Pujols’ 500th HR helps Angels beat Nationals 7-2

By The Associated Press | From Page: B2

Rangers rally for two runs in ninth to beat A’s

By The Associated Press | From Page: B2 | Gallery

 
Beverly Hanson, forgotten pioneer in women’s golf

By The Associated Press | From Page: B2

Tech boom presents new wrinkles for Wrigley Field

By The Associated Press | From Page: B2

 
Warriors announce new plans for SF arena

By The Associated Press | From Page: B2

Kentucky freshman Julius Randle to enter NBA draft

By The Associated Press | From Page: B2

 
AP Source: N.Y. Giants’ Hill facing 3rd suspension

By The Associated Press | From Page: B2

Warriors’ Curry eager to erase Game 2 nightmare

By The Associated Press | From Page: B2

 
Spurs’ Popovich wins NBA Coach of the Year

By The Associated Press | From Page: B2 | Gallery

Raiders begin offseason workouts

By The Associated Press | From Page: B2 | Gallery

 
David Moyes out as Manchester United manager

By The Associated Press | From Page: B2

NBA Playoffs: Raptors even series with Nets

By The Associated Press | From Page: B3 | Gallery

 
.

Business

Novartis reshapes business with GSK, Lilly deals

By The Associated Press | From Page: B9

 
McDonald’s 1Q profit slips as US sales decline

By The Associated Press | From Page: B9

AT&T had strong 1Q on wireless installment plans

By The Associated Press | From Page: B9

 
Valeant, Ackman make $45.6B Allergan bid

By The Associated Press | From Page: B9

.

Obituaries

Robert James Carty Sr.

By Nancy Green | From Page: A4

 
Richard P. Horn

By Nancy Green | From Page: A4

Dondi Martin

By Nancy Green | From Page: A4

 
Anne Irene Elizabeth Fulgoni

By Nancy Green | From Page: A4, 3 Comments

Kyong Hee Maxwell

By Nancy Green | From Page: A4

 
Norma O’Regan

By Nancy Green | From Page: A4, 1 Comment

.

Comics

For Better or Worse

By Daily Republic Syndicated Content | From Page: B6

 
Dilbert

By Daily Republic Syndicated Content | From Page: B6

Get Fuzzy

By Daily Republic Syndicated Content | From Page: B6

 
Pickles

By Daily Republic Syndicated Content | From Page: B6

Blondie

By Daily Republic Syndicated Content | From Page: B6

 
Beetle Bailey

By Daily Republic Syndicated Content | From Page: B6

Baby Blues

By Daily Republic Syndicated Content | From Page: B6

 
Sally Forth

By Daily Republic Syndicated Content | From Page: B6

Rose is Rose

By Daily Republic Syndicated Content | From Page: B6

 
Frank and Ernest

By Daily Republic Syndicated Content | From Page: B6

B.C.

By Daily Republic Syndicated Content | From Page: B6

 
Garfield

By Daily Republic Syndicated Content | From Page: B6

Zits

By Daily Republic Syndicated Content | From Page: B6

 
Peanuts

By Daily Republic Syndicated Content | From Page: B6

Wizard Of Id

By Daily Republic Syndicated Content | From Page: B6

 
Baldo

By Daily Republic Syndicated Content | From Page: B6

Bridge

By Daily Republic Syndicated Content | From Page: B7

 
Sudoku

By Daily Republic Syndicated Content | From Page: B7

Cryptoquote

By Daily Republic Syndicated Content | From Page: B7

 
Crossword

By Daily Republic Syndicated Content | From Page: B7

Word Sleuth

By Daily Republic Syndicated Content | From Page: B7