Republicans Strike Back With New Budget Plan
Proposal would not raise taxes for wealthy Americans
By Newser Editors and Wire Services
Posted Dec 3, 2012 3:04 PM CST
Timothy Geithner answers questions about averting the "fiscal cliff" on an episode of “Face the Nation” on Sunday, Dec. 2, 2012.   (Chris Usher)

(Newser) – House Republicans responded to President Barack Obama today, proposing a new 10-year, $2.2 trillion blueprint for avoiding the looming "fiscal cliff." The plan, sent to the White House by House Speaker John Boehner, was unlikely to win Obama's approval, but it does go part way toward the president's demand that Republicans lay out spending cuts they would demand as negotiations on the budget crisis begin in earnest. The Republican plan calls for increasing the eligibility age for Medicare, the federal government's health insurance program for older Americans, and lowering cost-of-living increases for Social Security pension benefits that go to Americans of retirement age.

It does not, however, meet Obama's demand that tax rates be raised for American couples earning more than $250,000 a year and runs counter to his campaign promise to save Medicare from the chopping block. Obama and congressional Republicans have until Dec. 31 to reach an agreement on how to increase government revenue and cut spending to avoid big automatic tax increases on all Americans and massive cuts in government programs ranging from education to the military. Economists predict that a failure to avoid both the rise in taxes and the mandated spending cuts would send the fragile economy back into recession and cause a spike in already stubbornly high unemployment.

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Showing 3 of 99 comments
right2dave
Dec 5, 2012 6:28 AM CST
You mean the dems don't have a budget? What a surprise.
Tology
Dec 4, 2012 3:58 AM CST
They have until Dec.31st but they are taking their winter recess next week. Grab your parachutes, we're going over a cliff!
wasntme
Dec 4, 2012 2:05 AM CST
Well there it is, only 2 months since the election the Republicans felt it safe to insist on moving the age limit up on receiving SS & Medicare. Something they just told the public they had no interest on changing. They are proposing this act on the facts that Americans are living longer and healthier. This is just another lie as only the wealthy Americans are living longer. People making less then 45k a year are actually dying earlier in life. "What's in it for me?" is slowly losing out to "What's in it for me right now?" It is amazing how we have been steered toward believing we are uneducated and have a memory that only goes back to last week. In fact public schools have been under attack to teach only how to read and how to count money. The last time I checked it wasn't New Zealand or any Asian country that just successfully sent a large rover to Mars. But ssh that isn't how we are going to rate how educated we are as a nation. The wealthy believe they need low wage employees that only need to read and count money, nothing more and they need a lot in the near future. The reality is these so called Great educational countries, that are said to be more intellegent, do not educate their poor and with technology the slave workers of these countries are eventually not going to cut the mustard. How dare these people kill themselves because of the work conditions they are subject to, that is the employers job to decide how you are going to die. That is who is behind the "Bad Teacher", "Bad Policeman", "Bad Fireman", "Bad Union", "Bad any government or state employee" smear campaigns.