SalemNews.com, Salem, MA

Nation/World

November 14, 2012

Dems: Go over the 'fiscal cliff,' then bargain

WASHINGTON — Some Democrats are pushing an unorthodox idea for coping with the “fiscal cliff”: Let the government go over, temporarily at least, to give their party more bargaining leverage for changes later on.

The idea has plenty of skeptics, and the White House regards it frostily. But it illustrates the wide range of early negotiating positions being staked out by Republicans and Democrats as lawmakers gathered yesterday for their first postelection talks on how to avoid the looming package of steep tax hikes and program cuts.

Just as brazen, in the eyes of many Democrats, is the GOP leaders’ continued insistence on protecting tax cuts for the rich. President Barack Obama just won re-election, campaigning on a vow to end those breaks.

Democrats and Republicans appear heading toward another round of brinkmanship that will test who blinks first on questions of major importance. It’s a dance that has infuriated many Americans, shaken financial markets and drawn ridicule from foreign commentators.

In late 2010, after big GOP midterm election wins, Obama backed off his pledge to raise taxes on the rich. In the summer of 2011, House Republicans pushed Congress within a hair of refusing to raise the debt ceiling, leading to the first-ever downgrade of the government’s credit rating. And last December, it was the Republicans’ turn to blink, yielding to Obama’s demand to extend a payroll tax break.

The “fiscal cliff” deadline comes in seven weeks. One provision: Unless Congress acts, all Bush-era tax cuts would expire, raising 2013 tax bills for most Americans. Obama wants to end those tax cuts only for households making more than $250,000 a year. Republicans insist on no tax rate increases anywhere.

If the “fiscal cliff” takes effect, congressional Republicans would feel pressure to give ground in several areas to achieve their top goal: restoring tax cuts for as many people as possible. That’s why Sen. Patty Murray, D-Wash., and other Democrats have said their party’s leaders should seriously consider letting the Jan. 1 deadline pass and then negotiate with Republicans under sharply different circumstances. Some or most of any new agreements could be made retroactive to Jan. 1, they say.

Text Only | Photo Reprints
Nation/World

Local News
  • City gets four bids for McKay School BEVERLY -- In the latest round of bids for the McKay School property, the city will consider four new proposals it received last week. The most recent proposals mark the fourth time the city has reviewed bids on the property and the second effort for

    August 20, 2014

  • Police to put down their pens, write electronic tickets BOSTON -- State troopers will soon toss handwritten tickets in favor of electronic citations to save money and time, and local police across the state could eventually follow suit. State police using the system will swipe or scan a driver's license t

    August 20, 2014

  • 140819_SN_DLE_VAPOR2 No 'butts' about it: Vapor stores pop up despite e-cig concerns Michael Greene sells e-cigarettes because they saved his life. And if they were available in the United States 17 years ago, they might have also spared his father, who smoked four packs of cigarettes a day for 40 years. "If you put too many regulati

    August 20, 2014 3 Photos

  • 140819_SN_DLE_MURPHY4 109 days, 2 new lungs later, Essex Deputy Sheriff Murphy going strong Dozens of friends and family members lined up on Balcomb Street Tuesday evening to greet Newton Murphy as he arrived home from his double lung transplant. Murphy, the Essex County deputy sheriff, had been in the hospital for 109 days after his surge

    August 20, 2014 8 Photos

  • Sex offender Matthew Delima, who fled with teen, gets 2-10 years

    SALEM -- A judge Tuesday returned a homeless Level 3 sex offender to state prison for two to 10 years, but he said that after reading police reports and other records in the case, he would have imposed even more time. The reason Judge Timothy Feeley

    August 20, 2014 3 Stories