Now that House GOP leaders have made their counter-offer in the fiscal cliff negotiations, and the White House has dismissed it, where do you go if you’re in Washington and you’re looking to make a deal?
Thus far, as the Washington Post‘s Lori Montgomery reports: “Republicans say they are willing to extract all the new tax money from households earning more than $250,000 a year, the same group Obama wants to target with higher tax rates. But the GOP plan would raise the money by wiping out deductions instead of raising rates…Democrats said the proposed cuts to social safety-net programs would outweigh higher taxes.”
“Don’t cave…compromise,” Morning Joe host Joe Scarborough said to Republicans during a discussion of David Brooks’ latest column ”The Truly Grand Bargain.”
“I could see, and the numbers would add up, if you said to the president, you’re going to have to give us a lot more in cuts, we are going to have to be more aggressive reforming Medicare, Medicaid, and let’s pass the Warren Buffett tax—where the super-rich, millionaires and above, pay 30% minimum…and then raise the $250,000 level to $500,000. And then if you’re GOP, you can say ‘We’re not going up to 39.6, but if you’ll do all of this and give us the cuts that we need, then we’ll meet you halfway and raise the marginal rates to 37%. I don’t know. The White House probably won’t do that, but that’s a deal.”