President Obama and the Administration through a statement released by the Office of Management and Budget unambiguously rejected Speaker John Boehner’s “Plan B” tax plan.
On Tuesday, Speaker John Boehner held a press conference accompanied by many fellow House Republicans including Majority Leader Rep. Eric Cantor (R-VA), House Majority Whip Rep. Kevin McCarthy (R-CA), House Republican Conference Chairman Rep. Cathy McMorris Rodgers (R-WA) and House Republican Conference Vice Chairman Rep. Lynn Jenkins (R-KS). Boehner said then that he is moving to a “Plan B” to solve the fiscal cliff issue and he will put a bill on the floor that increases taxes for people whose incomes are more than one million dollars.
On Wednesday, President Obama held a press conference saying “it is very hard for them to say yes to me. But at some point, they’ve got to take me out of it and think about their voters.”
Those remarks may well have set off Speaker Boehner, who held another press conference on Wednesday, unaccompanied by other Republican House members. Speaker John Boehner spoke with a defiant tone. The appearance before reporters that lasted under a minute, Boehner called on Obama to offer a deficit-cutting plan balanced between spending cuts and tax increases and predicted that the House would pass his backup plan. “Then the president will have a decision to make,” Boehner said. “He can call on the Senate Democrats to pass that bill or he can be responsible for the largest tax increase in American history.”
The Tax Policy Center in a study released today, also was critical of the Boehner “Plan B,” saying that it will benefit the wealthy and do little for the hurting middle-class of America. According to the Washington Post, who analyzed the Tax Policy Center study, said that under the current plan Boehner is pushing, lots of rich people — folks who make over half a million dollars a year, but under $1 million — would see their taxes go down. And lots of poor and middle class people — folks who make less than $100,000 a year — would see their taxes go up.
The Obama Administration released a statement after the Boehner press conference saying that they “strongly oppose House passage of the Middle Class Tax Cut Act (the Congressional Republican “Plan B” legislation), which would continue large tax cuts for the very wealthiest individuals while raising taxes on 25 million students and working families by an average of $1,000 each.”
It added that the passage of this “Plan B” would immediately cut off unemployment assistance to two million Americans struggling to find a job, end critical tax incentives for the Nation’s businesses such as the Research and Experimentation tax credit, and cut reimbursements for doctors treating Medicare patients. It also proposes no spending cuts and does not “meet the test of balance.”
The Administration also criticized that the “Plan B” proposal would result in Americans losing their emergency unemployment benefits in January. “Plan B” would also fail to continue critical tax incentives for business and would heighten uncertainty for families and businesses by leaving in place the threat of default on the national debt.
The Administration also said it “will not accept a deal that asks too little of the very wealthiest to increase revenue and instead shifts the burden to the middle class and seniors. Instead of working together to find a balanced approach that can pass both Houses of the Congress, the House amendment will not protect middle class families and does little to address the Nation’s fiscal challenges as it includes no spending cuts.”
The Administration concluded by saying that President Obama, if he were presented with the “Plan B,” as stated and written by Speaker John Boehner, would veto the legislation known as House amendment to the Senate amendment H.J. Res. 66.
Back to square one unless the negotiations continue.
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John is the author of an award-winning book, the 2010 Winner of the USA National Best Book award for African-American studies, published by The Elevator Group Mr. and Mrs. Grassroots: How Barack Obama, Two Bookstore Owners, and 300 Volunteers did it. Also available an eBook on Amazon. John is also a member of the Society of Midland Authors and is a book reviewer of political books for the New York Journal of Books