Senate Republicans are backing off a last-ditch effort to include a Social Security cut in an eleventh-hour fiscal cliff deal.
My favorite part of tonight’s fiscal cliff wrap:
In a tremendous irony, Republican requests for lower tax rates, a high estate tax threshold, and a permanent AMT fix; combined with Democratic requests to delay the sequester, include a “doc fix” for Medicare physicians, and extend emergency unemployment benefits; have left the parties negotiating toward a plan that would result in no net deficit reduction over 10 years, according to Senate Majority Whip Dick Durbin.
President Obama’s most recent attempt to cut a big budget deal with John Boehner ended with a conciliatory Obama agreeing to cut Social Security benefits and a hapless Boehner launching his disastrous Plan B debacle. Liberals were angry at Obama for conceding too much; conservatives were angry at Boehner for — well, for a variety of things, but mainly they were upset that their backs were up against a wall and they had no way to prevent taxes from going up.
It was a mess. But there was a certain logic to it. Read More
We take a look back at the 2012 year in muck. And my, what a year it was.
On the Senate floor a few minutes ago Mitch McConnell made Democrats an offer. Now that he and the White House basically agree on the tax piece of the so-called fiscal cliff, Congress should pass legislation to prevent the Bush tax cuts from expiring at midnight, and grapple with the “sequester” in the coming days.
This is an offer Democrats will have a hard time turning down. But it’s also an indication that Republicans have basically no intention of giving Obama any more revenue once the current budget fight is resolved. And for the White House that means now’s the time to consider how ready they are to stare Republicans down in a fight over rising the debt limit. Read More
We still don’t know if there’s going to be a deal today. We still don’t know exactly what it will be if there is one. And for all this frantic bustling, we don’t know if the House will pass it. [I wrote this before the House GOP signaled they don’t want to vote today at all.] But for all that, we seem to be getting a relatively clear read on the outlines of a deal. And over the course of the day I’ve gotten a better understanding of why the White House thinks this represents a strong deal for them. Read More
Through the last few weeks of budget negotiations, there’s been a backdraft of commentary suggesting that for all the talk about defeat for Republican principles, the tax rate endgame actually represents a massive vindication of Republican tax-cutting principles. Here’s but one example from today. After all, virtually every deal discussed involves making the great majority of the Bush tax cuts permanent. This is partly right but mainly wrong. Read More
It’s looking an awful lot like Congress won’t pass any fiscal cliff legislation tonight and the Bush tax rates will expire as scheduled at midnight. And yet the Senate is still buzzing and both parties seem to be charging ahead as if nothing changes in six and a half hours.
I’ll admit I’m a bit mystified by this. Read More
Vice President Joe Biden is expected to head to the Hill tonight to rally wavering Senate Democrats to support the fiscal cliff deal he’s trying to strike with Senate Minority Leader Mitch McConnell (R-KY) — but the timing of the Biden cameo is still uncertain as negotiations to finalize a proposal apparently continue.
Late Update: Senate Democrats will meet at 9:15 p.m. ET, at which time Biden will make his pitch.