Posts Tagged With: fiscal cliff
The country hit its $16.4 trillion debt limit December 31, and the Treasury is on track to run out of funds in February. If Congress does not raise the debt ceiling on time, the United States would default on its debt payments and roll markets worldwide.
National News Alert……President Obama to speak about ‘fiscal cliff’ at 1:30 ET as negotiators edge closer to deal…
President Obama will deliver remarks on the ‘fiscal cliff’ talks Monday at 1:30 p.m. E.T., as negotiators for the administration and Senate Minority Leader Mitch McConnell (R-Ky.) appeared to have nailed down many of the most critical tax issues, including a plan to let taxes rise on income over $450,000 a year for couples and $400,000 a year for individuals, according to people in both parties familiar with the talks.
As the nation nears the fiscal cliff, President Barack Obama has ended the pay freeze on federal employees — giving workers, ranging from Vice President Joe Biden to members of Congress and the Supreme Court, a raise.
Obama signed the executive order on Thursday, The Weekly Standard reports. The increases take effect in late March.
Citing recessionary factors and budgetary concerns, Obama instituted the pay freeze in 2010.
Under the new guidelines, for instance, Biden’s salary will jump from $225,521 last year to $231,900 next year.
Members of Congress, from the House and Senate, also will receive a slight raise — from $174,000 to 174,900.
And the majority and minority leaders in both chambers will see their salaries rise to $194.400.
The salary for the Speaker of the House, currently the Ohio Republican John Boehner, will increase to $224,600.
In addition, the pay for the members of the U.S. Supreme Court also will rise, with Chief Justice John Roberts receiving $223,500, and associate justices being paid $213,900.
Treasury Secretary Timothy F. Geithner said his department will take “extraordinary measures” to postpone a U.S. default for about two months while President Barack Obama and Congress work out a deficit-reduction deal.
Geithner, in a letter to congressional leaders today, said the government will hit its statutory $16.4 trillion debt ceiling on Dec. 31. To avert a default, the Treasury will take action to create about $200 billion in headroom under the debt limit.
“However, given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it is not possible to predict the effective duration of these measures,” Geithner said.
It is very simple……House Republicans alone have it in their power to kill Obamacare, cut $1 trillion in borrowing and spending and start the nation’s return to constitutionally limited government with one vote.
That vote is a rejection of raising the debt limit – thereby denying Obama the funds he needs for Obamacare and “a thousand other programs that are wasteful, unconstitutional, immoral and about to take the country off the fiscal cliff.”
Americans need to rise up in big numbers and demand it of them,” “Republicans have it in their power. They only need an injection of courage.”
Congressional Republicans dug in to fight President Barack Obama’s plan to skirt the fiscal cliff, rejecting his tax-and-spending proposal as the president heads out today to sell it to the American public.
Treasury Secretary Timothy Geithner shuttled among congressional leaders yesterday with a plan to trade $1.6 trillion in tax increases for $400 billion in unspecified entitlement program cuts, Republican congressional aides said.
Republicans complained that the offer was little more than a rehash of old budget proposals, setting the stage for more contentious negotiations over the next several weeks as the year-end deadline approaches for more than $600 billion in spending cuts and tax increases to kick in.
“If the president is going to lead on this critical issue, he has to propose a plan that can actually pass,” said Republican Senator Roy Blunt of Missouri. “This is simply not a serious proposal.”
Geithner’s offer, as described by two Republican aides, is based on Obama’s fiscal 2013 budget and his 2011 proposal to the deficit-cutting supercommittee, which last year didn’t come up with a plan all sides could accept.
It would raise taxes for top earners by $1.6 trillion over the next decade with higher rates on income, capital gains, dividends and estates, along with limits on tax breaks. It would call for about $400 billion in cuts to entitlement programs, which Republicans have deemed insufficient.
The plan would either extend or replace a payroll tax cut that is set to expire at the end of the year, according to the Republican aides. It would protect millions more people from having to pay the alternative-minimum tax and defer by a year the federal spending cuts set to start taking effect in January.