SalemNews.com, Salem, MA

Nation/World

November 17, 2012

Hill leaders voice new confidence in deficit deal

(Continued)

“There is no more ‘let’s do it some other time,’” said Senate Majority Leader Harry Reid, D-Nev. “We’re going to do it now. ... We feel very comfortable with each other, and this isn’t something we’re going to wait until the last day of December to get it done.”

Obama favors $1.6 trillion in higher taxes over the next decade, in part by allowing existing cuts to expire on Dec. 31 on higher incomes.

White House officials claim an overall deficit reduction package totaling more than $4 trillion, although that includes $1 trillion in spending cuts agreed to last year, and an additional $1 trillion in spending no longer needed for the wars in Iraq and Afghanistan. Republicans and independent fact checkers dispute the claimed savings from the two wars, since the money was borrowed in the first place.

Whatever the obstacles to a deal, there is little dispute about the cost of failure.

Under current law, tax cuts that took effect more than a decade ago will expire at all income levels at the end of the year, as will Bush-era reductions for investors, married couples, families with children and others. The 2 percent payroll tax cut would end, and an additional 26 million taxpayers would come under the alternative minimum tax.

As well, the defense budget would be cut by $55 billion, and domestic programs would incur a reduction of the same size.

Unemployment benefits for some of the longest-term jobless also expire at the end of the year.

Boehner has said previously that any agreement should include an increase in the national debt limit, now $16.4 trillion. The Treasury is expected to hit that cap sometime in the next few months.

Text Only | Photo Reprints
Nation/World

Local News
  • 140725_ET_PBI_MBRALLY_1.jpg PHOTO SLIDESHOW: MARKET BASKET RALLY Thousands of people converged at the site of the Tewksbury store this morning for another rally by employees and supporters who feel disenfranchised by the ouster of CEO Arthur T. Demoulas by the company board of directors led by his cousin Arthur S. Demoulas.

    July 25, 2014

  • Hamilton church volunteers assaulted in Guatemala

    A local church group returning to Guatemala City airport after eight days of mission work was attacked Tuesday.

    July 25, 2014

  • BREAKING: Market Basket board to consider sale to Arthur T. Demoulas

    BOSTON — Market Basket’s board of directors this afternoon announced it will consider offers to buy the company, including that from ousted CEO Arthur T. Demoulas. His offer will be considered “along with any other offers previously received and to b

    July 25, 2014 7 Stories

  • Drama builds today in Market Basket saga

    July 25, 2014

  • 140721_GT_MSP_MARKETBASKET_04 [Duplicate] Ousted CEO bids for Market Basket Arthur T. Demoulas' offer to buy the rest of the supermarket chain embroiled in a widespread protest and boycott was met with elation, and then a reality check, protest organizers said Thursday. Demoulas announced his offer Wednesday night, though he

    July 25, 2014 1 Photo