Yesterday afternoon, details came out of a proposal that the White House had made to House Republicans over the so-called “fiscal cliff.” In the proposal, President Obama asked for $1.6 trillion in tax hikes. As you might imagine, that was far too high a price:
The White House is seeking $1.6 trillion in tax increases up front, as well as $50 billion in additional stimulus spending, as part of any “fiscal cliff” deal, Republican aides said Thursday as talks aimed at averting the economy-rattling cliff turned testy.
President Barack Obama also wants a permanent increase in the federal debt ceiling, a one-year expansion of jobless benefits and an extension of the payroll tax credit, these aides said.
The latest proposals were presented by Treasury Secretary Timothy Geithner, who visited Capitol Hill Thursday to discuss the fiscal cliff with leaders of both parties.
After Geithner’s visit, Republican House Speaker John Boehner publicly lambasted the Obama administration, saying “the White House has to get serious.”
Some spending cuts were included in the proposal, about $400 billion over 10 years — ranging from farm subsidies to postal service costs. However, the White House wants an additional $50 billion for infrastructure spending.
None of this is going to happen; nor should it happen. House Speaker John Boehner, as well as some other Republicans in both chambers, have already signaled a willingness to bend on tax revenues, a prospect met with dismay and derision amongst conservatives and libertarians (myself included).
This is supposed to be a balanced approach? Very heavy on tax hikes and very light on spending cuts. The proposal is so absurd that Senate Minority Leader Mitch McConnell literally laughed as Treasury Secretary Tim Geither outlined the proposal. One would have thought that the White House, after already negotiating with Boehner, would have at least made some effort to bring Republicans along its first real proposal. If this is Obama’s vision of compromise, I’d hate to see what he really wants.