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Obama Offer Raises Tax Increase Threshold to $400,000

Posted by on Dec. 18, 2012 at 8:17 AM
  • 38 Replies

Obama Offer Raises Tax Increase Threshold to $400,000


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Obama Makes New Fiscal Cliff Offer

President Barack Obama made a new budget offer that would raise taxes by $1.2 trillion and increase tax rates for households earning more than $400,000 a year, up from $250,000, said a person familiar with the talks.

Obama’s plan would cut $1.22 trillion in federal spending, including interest savings, said the person, who spoke on condition of anonymity. It would change the inflation measure used to calculate Social Security benefit increases. In his offer, Obama would increase the U.S. debt limit for two years.

Obama and House Speaker John Boehner are negotiating to avert more than $600 billion in tax increases and spending cuts set to start in January. Obama presented the offer to Boehner today, the person said.

Obama and Boehner met for 45 minutes today at the White House for the third time in nine days as they try to prevent the so-called fiscal cliff.

Boehner spokesman Brendan Buck, in an e-mailed statement tonight, called the offer “a step in the right direction” though he said it “cannot be considered balanced.” He said the offer included $1.3 trillion in revenue and $930 billion in spending cuts.

That calculation doesn’t count $290 billion in lower interest payments as part of the spending cut. Interest savings are a byproduct of tax and spending decisions. Buck said the speaker hopes to continue negotiations.

Weekly Conference

Boehner and Majority Leader Eric Cantor will give House Republicans an update on the negotiations at their weekly conference meeting tomorrow, according to a leadership aide who requested anonymity to talk about the leaders’ plans.

Obama and Boehner are still far apart on where to draw the line on tax rates, how to address the debt limit and whether stimulus spending should be included in a budget deal.

Obama’s offer would set the top tax rates on dividends and capital gains at 20 percent, the person said. Combined with tax increases from the 2010 health care law scheduled to take effect in January, the top rates would be 23.8 percent.

Obama would return the estate tax to 2009 parameters, with a $3.5 million per-person exemption and a 45 percent top rate.

The dividend proposal matches the bill Senate Democrats passed in May and would raise less money than Obama’s budget, which called for taxing dividends as ordinary income. The estate proposal is less generous than the parameters backed by many Senate Democrats, who would extend the $5.12 million exemption and 35 percent top rate.

Recurring Debates

Obama’s offer includes several details that hadn’t previously been publicly under consideration. His proposal would end three recurring debates that occur in Congress over expiring provisions.

Obama would permanently extend an annual “patch” that prevents expansion of the reach of the alternative minimum tax. He would end a scheduled payment cut to doctors under Medicare. Also, he would permanently extend dozens of tax breaks that routinely expire, such as the research and development tax credit and the ability to deduct state and local sales taxes.

His plan would achieve $400 billion in savings from health programs, $200 billion from other so-called mandatory spending programs and another $200 billion from other programs, half in defense.

About $130 billion of the spending savings would come from switching the way that annual inflation increases for Social Security benefits are calculated. Obama’s offer would include protections for the most vulnerable recipients, the person said.

While Senate Majority Leader Harry Reid, a Nevada Democrat, has declared Social Security off the table in a year-end budget deal, the CPI revision has been a centerpiece of most major bipartisan efforts to trim the U.S. debt.

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If they enforced bank regulations like they do park rules, we wouldn't be in this mess

by on Dec. 18, 2012 at 8:17 AM
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Replies (1-10):
brookiecookie87
by Platinum Member on Dec. 18, 2012 at 8:19 AM
2 moms liked this

I wonder if people are going to start claiming that 400k+ is still middle class even though it involves less than 1% of America.

And if that seems absurd to you. They were claiming the 250K+ crowd was middle class even though it is only 2% of America.

And these %'s are not in the middle. We are talking about the Top 3% of America.

Quote:

President Barack Obama made a new budget offer that would raise taxes by $1.2 trillion and increase tax rates for households earning more than $400,000 a year, up from $250,000, said a person familiar with the talks.

yourspecialkid
by on Dec. 18, 2012 at 8:23 AM
2 moms liked this

 It is a start...raising the amount will take a lot of small businesses out of the mix.  They could have done that by just giving business income it's own tax rate.

We still need more cuts...and the sacred cows need to be on the table...not for cuts...but for restructure so the next generation has access.

 

romalove
by Roma on Dec. 18, 2012 at 8:26 AM

I think both sides will do whatever they have to in order to avoid the fiscal cliff.


yourspecialkid
by on Dec. 18, 2012 at 8:28 AM

 As long as they are talking......I would also like to see...

Government contracts..particularly military ones only going to businesses doing business here in the US

Allowing govt/military to save money on their budgets without penalizing them the next year.  If my husband doesn't spend a million dollars of his budget in 2012 he should not lose a million from his 2013 budget.  The people "on the ground" are better able to identify where money can be saved than the top level folks.

 

NWP
by guerrilla girl on Dec. 18, 2012 at 8:41 AM
3 moms liked this

Like corporate welfare and insustrial farming subsidies...Yes

Quoting yourspecialkid:

 It is a start...raising the amount will take a lot of small businesses out of the mix.  They could have done that by just giving business income it's own tax rate.

We still need more cuts...and the sacred cows need to be on the table...not for cuts...but for restructure so the next generation has access.

 


Naughty Wittle Puppy

brookiecookie87
by Platinum Member on Dec. 18, 2012 at 8:42 AM
1 mom liked this

Oh-You mean she wasn't talking about the Military?

Quoting NWP:

Like corporate welfare and insustrial farming subsidies...Yes

Quoting yourspecialkid:

 It is a start...raising the amount will take a lot of small businesses out of the mix.  They could have done that by just giving business income it's own tax rate.

We still need more cuts...and the sacred cows need to be on the table...not for cuts...but for restructure so the next generation has access.

 



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If they enforced bank regulations like they do park rules, we wouldn't be in this mess

yourspecialkid
by on Dec. 18, 2012 at 9:02 AM

 

Quoting brookiecookie87:

Oh-You mean she wasn't talking about the Military?

Quoting NWP:

Like corporate welfare and insustrial farming subsidies...Yes

Quoting yourspecialkid:

 It is a start...raising the amount will take a lot of small businesses out of the mix.  They could have done that by just giving business income it's own tax rate.

We still need more cuts...and the sacred cows need to be on the table...not for cuts...but for restructure so the next generation has access.

 


 

 There is plenty of room for military cuts...like I said in my other post...let the folks on the ground help.  My husband can easily save a million dollars a year with things he comes up with...imagine how much more it could be if his folks also participated in the savings game?  These millions across the military add up fast....and this is just low hanging fruit.

There are a lot of ways the military could save..contracting is a big one.  They don't have to attack the first thing they see like pensions and hc....as far as pensions go...those need to be revamped for the new folks coming in...there is no money to pay someone for life after serving 20 yrs...raise the age to 65....set up a matching 401k plan for the military and let them save most of their pension.....lots of low hanging easy to do things..........the problem is no one seems to have the balls to do it....it just seems to be more fun to argue with one another.

 

brookiecookie87
by Platinum Member on Dec. 18, 2012 at 9:12 AM
1 mom liked this


Quoting yourspecialkid:

 

Quoting brookiecookie87:

Oh-You mean she wasn't talking about the Military?

Quoting NWP:

Like corporate welfare and insustrial farming subsidies...Yes

Quoting yourspecialkid:

 It is a start...raising the amount will take a lot of small businesses out of the mix.  They could have done that by just giving business income it's own tax rate.

We still need more cuts...and the sacred cows need to be on the table...not for cuts...but for restructure so the next generation has access.

 



 There is plenty of room for military cuts...like I said in my other post...let the folks on the ground help.  My husband can easily save a million dollars a year with things he comes up with...imagine how much more it could be if his folks also participated in the savings game?  These millions across the military add up fast....and this is just low hanging fruit.

There are a lot of ways the military could save..contracting is a big one.  They don't have to attack the first thing they see like pensions and hc....as far as pensions go...those need to be revamped for the new folks coming in...there is no money to pay someone for life after serving 20 yrs...raise the age to 65....set up a matching 401k plan for the military and let them save most of their pension.....lots of low hanging easy to do things..........the problem is no one seems to have the balls to do it....it just seems to be more fun to argue with one another.

 

 

I don't know how many times a computer has broke and then replaced with a new one.  A new harddrive is 30-40 dollars. A new power supply is 30-40 dollars and the most likely cause of a computer "breaking".

I am not sure if it is just my Unit that does this. But if this is Army wide-Then I imagine the savings would easily rack up in the millions.

Let's not even go into the fact that we don't need tanks anymore but we continue to order them :/ You are right. There are lots of savings we could do that wouldn't hurt anyone that would save lots of money.

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If they enforced bank regulations like they do park rules, we wouldn't be in this mess

radioheid
by Libertarian on Dec. 18, 2012 at 9:17 AM
2 moms liked this

 I personally believe military retirement should start at 30 years, not 20. It was absolutely absurd watching a 39-year old staff sergeant retire while I was on active duty.

Quoting yourspecialkid:

 

Quoting brookiecookie87:

Oh-You mean she wasn't talking about the Military?

Quoting NWP:

Like corporate welfare and insustrial farming subsidies...Yes

Quoting yourspecialkid:

 It is a start...raising the amount will take a lot of small businesses out of the mix.  They could have done that by just giving business income it's own tax rate.

We still need more cuts...and the sacred cows need to be on the table...not for cuts...but for restructure so the next generation has access.

 


 

 There is plenty of room for military cuts...like I said in my other post...let the folks on the ground help.  My husband can easily save a million dollars a year with things he comes up with...imagine how much more it could be if his folks also participated in the savings game?  These millions across the military add up fast....and this is just low hanging fruit.

There are a lot of ways the military could save..contracting is a big one.  They don't have to attack the first thing they see like pensions and hc....as far as pensions go...those need to be revamped for the new folks coming in...there is no money to pay someone for life after serving 20 yrs...raise the age to 65....set up a matching 401k plan for the military and let them save most of their pension.....lots of low hanging easy to do things..........the problem is no one seems to have the balls to do it....it just seems to be more fun to argue with one another.

 

 


"Roger that. Over."

R   A   D    I    O    H    E    I    D

radioheid
by Libertarian on Dec. 18, 2012 at 9:20 AM

 And don't even get me started on the waste and abuse surrounding sheer ignorance of the DRMO program & procedures... We're talking hundreds of thousands of dollars every year at every base.

Quoting brookiecookie87:

 

Quoting yourspecialkid:

 

Quoting brookiecookie87:

Oh-You mean she wasn't talking about the Military?

Quoting NWP:

Like corporate welfare and insustrial farming subsidies...Yes

Quoting yourspecialkid:

 It is a start...raising the amount will take a lot of small businesses out of the mix.  They could have done that by just giving business income it's own tax rate.

We still need more cuts...and the sacred cows need to be on the table...not for cuts...but for restructure so the next generation has access.

 


 

 There is plenty of room for military cuts...like I said in my other post...let the folks on the ground help.  My husband can easily save a million dollars a year with things he comes up with...imagine how much more it could be if his folks also participated in the savings game?  These millions across the military add up fast....and this is just low hanging fruit.

There are a lot of ways the military could save..contracting is a big one.  They don't have to attack the first thing they see like pensions and hc....as far as pensions go...those need to be revamped for the new folks coming in...there is no money to pay someone for life after serving 20 yrs...raise the age to 65....set up a matching 401k plan for the military and let them save most of their pension.....lots of low hanging easy to do things..........the problem is no one seems to have the balls to do it....it just seems to be more fun to argue with one another.

 

 

I don't know how many times a computer has broke and then replaced with a new one.  A new harddrive is 30-40 dollars. A new power supply is 30-40 dollars and the most likely cause of a computer "breaking".

I am not sure if it is just my Unit that does this. But if this is Army wide-Then I imagine the savings would easily rack up in the millions.

Let's not even go into the fact that we don't need tanks anymore but we continue to order them :/ You are right. There are lots of savings we could do that wouldn't hurt anyone that would save lots of money.

 


"Roger that. Over."

R   A   D    I    O    H    E    I    D

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