During Obama's Second Term, Will He...

[BigBadBrian]

Looming "Fiscal Cliff"....and Obama leaves the Country.

WASHINGTON — President Obama yesterday announced he’s jetting off on a victory lap around Southeast Asia, despite a new government report warning the Jan. 1 fiscal cliff will plunge the US into a recession and drive the unemployment rate up to 9.1 percent.

Obama and Congress have just 52 days to reach a deal to avoid sailing off that precipice, when a devastating double whammy of tax hikes and budget cuts will rock the economy and hit just about every American.

The negotiations will be difficult. Obama signaled he’s sticking to his demand for raising taxes on the wealthy. That’s long been a nonstarter with Republicans.

ZUMA Press.com
'Raising taxes on small businesses will kill jobs in America. It is as simple as that.' — House Speaker John Boehner
He will issue a statement today “about the action we need to take to keep our economy growing and reduce our deficit,” the White House said last night.

His chief political strategist, David Axelrod, said re-election gives Obama the upper hand.

“If the attitude is that nothing happened on Tuesday, that would be unfortunate,” Axelrod told MSNBC.

House Speaker John Boehner (R-Ohio) yesterday took all tax-rate increases off the table, though he said Republicans would accept other revenue measures, such as closing loopholes and eliminating deductions.

“Raising taxes on small businesses will kill jobs in America. It is as simple as that,” he told USA Today.

But those tense negotiations won’t interfere with Obama’s boarding Air Force One for a three-day tour of Bangkok, Rangoon and Phnom Penh.

Along the way, he’ll meet with Thai Prime Minister Yingluck Shinawatra to mark 180 years of diplomatic relations, chat with Burmese dissident Aung San Suu Kyi and attend the East Asia Summit in Cambodia. He takes off Nov. 17.

Meanwhile, the nonpartisan Congressional Budget Office released a report highlighting the economic shock that awaits America. The automatic spending cuts and tax increase will shrink the already anemic economy by 0.5 percent and cause the jobless rate to spike to 9.1 percent, the report predicted.

The average American family will pay an extra $2,000 to $3,000 in taxes after all of the Bush-era tax cuts expire Jan. 1, and about 1,200 government programs will experience spending cuts.

These austere measures, however, will succeed in slashing the deficit by $503 billion in 2013, and the economy should start to pull out of recession by 2014.

“Economic growth will pick up, and the labor market will strengthen,” said the CBO report.

Democrats and Republicans both want to find a way to soften the hard times currently scheduled to start New Year’s Day.

If they succeed, CBO predicted it will boost the economy next year.

America’s gross domestic product would grow by 2.2 percent if the Bush-era tax rates are extended and by nearly 3 percent if Obama’s payroll tax cut and extra long-term unemployment benefits are extended, the report predicted. link

[BigBadBrian]

Senate Minority Leader Mitch McConnell (R-KY) is speaking out

With conservatives across the country concerned about a rumored Republican cave-in in Washington, D.C. over tax policy, Senate Minority Leader Mitch McConnell (R-KY) is speaking out. Read his lips: no tax hikes.
McConnell said in an exclusive statement to Breitbart News:

"One issue I’ve never been conflicted about is taxes. I wasn’t sent to Washington to raise anybody’s taxes to pay for more wasteful spending and this election doesn’t change my principles. This election was a disappointment, without doubt, but let’s be clear about something: the House is still run by Republicans, and Republicans still maintain a robust minority in the Senate. I know some people out there think Tuesday’s results mean Republicans in Washington are now going to roll over and agree to Democrat demands that we hike tax rates before the end of the year. I’m here to tell them there is no truth to that notion whatsoever."

The media has already taken House Speaker John Boehner out of context to claim that he is willing to cave on raising tax rates. In point of fact, Boehner has spoken about closing tax loopholes while lowering tax rates as part of a balanced approach to spending to avoid the much-dreaded fiscal cliff. Both House and Senate Republicans are united in their opposition to tax hikes. link

[BigBadBrian]

Raising tax rates is "unacceptable" to House Speaker John Boehner

Raising tax rates is "unacceptable" to House Speaker John Boehner as he prepares to open negotiations on the looming "fiscal cliff" with the president and congressional Democrats, he told "World News" anchor Diane Sawyer today in an exclusive interview.

"Raising tax rates is unacceptable," Boehner, R-Ohio, said in his first broadcast interview since the election Tuesday.

"Frankly, it couldn't even pass the House. I'm not sure it could pass the Senate."

That stance could set up a real showdown with the White House given that the president has said he would veto any deal that does not allow tax cuts for the rich to expire. But the speaker said that Republicans would put new tax revenue on the table as leaders work toward a deal.

"I would do that if the president was serious about solving our spending problem and trying to secure our entitlement programs," Boehner said. "If you're increasing taxes on small-business people, it's the wrong approach."

Nevertheless, Boehner added that he is at least willing to listen to the president's proposals, even if they clash with his party's principles.

"Of course, we'll talk about it. We talk about all kinds of things we may disagree on," Boehner said. "I'm the most reasonable, responsible person here in Washington. The president knows it. He knows that he and I can work together. The election's over. Now it's time to get to work."

The fiscal cliff is a mix of tax increases and spending cuts set to take effect at the end of the year that could sink the economy back into recession. Boehner told Sawyer he imagines that negotiations on a bipartisan deal will begin soon, although he did not reveal whether any talks had already been scheduled.

Still, he said he hoped the framework of a deal could be completed by the end of the year in order to direct the next Congress to work out the details.

"The American people elected new representatives," he said. "They're the ones who ought to be the ones to do this.

"There are things that we can do in the lame duck to avert the fiscal crisis, but we want to do this the right way. We don't want to rush through this in the next two to three weeks. And what do you get? You can't rewrite the tax code in the next two or three weeks. And, so, there's a lot of possibilities in terms of how we proceed, and I'm confident that we can."

Boehner also said he welcomes back Rep. Paul Ryan, whose profile has exploded since he was chosen by Mitt Romney as the vice presidential nominee. Ryan won re-election to his House seat in Wisconsin at the same time he lost the vice presidency, but Boehner demurred when asked whether his place on the presidential ticket would increase his leadership profile.

"Because he ran for the vice presidency, is he the leader of the Republican party now?" Sawyer asked.

"Oh, I wouldn't think so. Paul Ryan's a policy wonk," Boehner said. "He's involved in the cause of trying to bring us pro-growth economic agendas for America and making sure that we're doing this in a fiscally responsible way.

"I'm glad that Paul Ryan's coming back to the Congress. I would expect he would continue as chairman of the Budget Committee," he said.

"Probably nobody in the Congress knows more about pro-growth economic policies other than Paul Ryan. I don't think there's many people in the Congress who understand the entitlement crisis that we're facing more than Paul Ryan. I think he'll be an important voice in this discussion and in this debate."

Boehner also said that once he saw that Mitt Romney would lose the race for the White House, he went to sleep at about 11:15 p.m. on election night with the realization that he would wake up to divided government, but still "slept like a baby."

"I may not like the five cards that have been dealt to me, but those are the cards I've got in my hand, and my job on behalf of the American people is to find a way to vote with my Democratic colleagues and a Democratic president to solve America's problems," he said. "If there was one mandate that came out of the election, it was find a way to work together to address our problems."

Sawyer asked the speaker whether Romney should take responsibility for those election results, but Boehner said he is proud of his campaign.


"I'll let all the political prognosticators figure out how the election went and why it went the way it did because Mitt Romney and Paul Ryan did a very nice job carrying our banner," he said. "But we lost. The other side did a much more effective job in getting their votes out to them, out to the polls. And as I'm fond of saying, 'Polls don't decide elections, voters do,' and more of their voters showed up than ours."

Asked whether he will make another attempt to fully repeal the Affordable Care Act, Boehner said "the election changes that" and "Obamacare is the law of the land."

Still, there are some parts of the law, he said, that should be on the table as lawmakers work toward a balanced budget.

The speaker also revealed that comprehensive, bipartisan immigration overhaul would be a top priority of his agenda during the 113th Congress.

"This issue has been around far too long," he said. "A comprehensive approach is long overdue, and I'm confident that the president, myself, others can find the common ground to take care of this issue once and for all."

The speaker also downplayed the influence of the Tea Party on his Congress, even though at least 49 members of the Tea Party caucus won re-election.

"This has been the most misreported story of my two years' tenure. We don't have a Tea Party caucus to speak of in the House," Boehner said. "All of us who were elected in 2010 were supported by the Tea Party.

"These are ordinary Americans who've taken a more active role in their government. They want solutions, but we've all come a long way over the last two years. I think we all understand each other a lot better."

With minorities and women comprising of a majority within the House Democratic Caucus during the next session, Sawyer asked Boehner whether the Republican Party is too white, too old and too male. The speaker acknowledged that the GOP has work ahead to appeal to other demographics.

"What Republicans need to learn is how do we speak to all Americans. You know, not just the people who look like us and act like us, but how do we speak to all Americans," Boehner said.

"Listen, we believe in the American dream. We believe in individual freedom, and we believe in empowering all citizens. I think there's a message there that resonates with all Americans, but we need to do a much more effective job in communicating it." link

[ZahZoo]

Wow this thread really went off subject...

It's interesting that in less than 24 hours after the election... all of a sudden the "Fiscal Cliff" resurfaced and jumped right to the center stage. Good thing though... it needs to be addressed asap. The initial messages from the house and senate leaders sounded encouraging... but appears they are quickly resuming previous positions. I sincerely hope the nation puts serious pressure on congress to get this thing moving. But realistically I think we're going to get a short term bridge again... which is a lame-assed excuse to delay another year.

On the stock market... Wall St was smart and worked profits based on hope from the election. As soon as that was over... they cashed out and it sent the market down rapidly. Seriously the economy is not doing as well as some will lead you to believe. If you watch job growth... that's the key indicator. Big business is sitting on Trillions in liquid cash and no one is making any serious capital investments.

The "Fiscal Cliff" and also whatever congress ends up doing could not only sink the US economy... which will likely crash the already shaky European economy and send the BRIC based growth markets seriously downward. In other words... in the Global economy everyone stand to lose... based on what happens here in the next 6-7 months.

What the Obama administration and Congress do during this time... is dead serious with huge implications not only for our faltering economy but the world's...

I can only hope people pay attention and don't just tune into the next soap-opera, reality show or Super Bowl... there's a lot at stake right now in the US.

[kwame k]

You bet there's a lot at stake here.

You're right, what happens over the next 6 months will impact us for years to come........for better or worse but with a track record like Congress and Obama never really asserting himself, it's a scary time.

The nonsense has got to stop and the GOP needs to realize that.........the President and the Demos have to stop being pussies and they all need to grow up and act like adults!

We're the ones who suffer not them.......the get $$ regardless of results, we don't

[Nickdfresh]

They're going to cave...

[ELVIS]

Obama's going to assert himself more this term, and nobody is going to like it...

[ELVIS]

I can only hope people pay attention.

Most won't...

[ELVIS]

Like this thread...

[ZahZoo]

Exactly KK... The election got a lot of people thinking and talking. But I really want to encourage folks not to stop... don't do a touch down dance for Obama winning nor throw your arms and check out due to Romney losing.

There's serious stuff on the table right now. All the dialog needs to continue at it's present level. I think that could be a key... not only from President Obama but also both sides of the aisle in congress. I believe that if the US public stayed engaged and talking about issues and solutions... it might encourage Washington to not just slip back into business as usual. Washington was listening through all this election hoopla... we need to ensure the public's message and mandate stays in their faces and ears!!

[ELVIS]

The dialog needs to continue at it's present level ??

C'mon dude, the dialog is a bunch of bullshit while they pass QEForever and nobody even notices or cares...

The spending is out of control but nobody cares because they don't feel it, so the problem is being handled like it's not really there and that's scary...

And they won't talk about it seriously...

[ZahZoo]

My point Elvis... is the public continuing the discussion at current levels. Why just pony up every 4 years and then go back to whatever you were doing.

I'm not advocating politicians keep selling snake-oil like it was a month ago. How about "we the people" keep asking tough questions. Keep voicing things like... enough gridlock, enough wars, enough wasteful spending... etc...

In simple terms don't stop the dialog and don't tune out and allow Washington to resume. Come on... we've got the stamina to do it.

[ELVIS]

Iraq routinely reported that they had chemical weapons as a signals intelligence op to fool and deter the Iranians.

Which was none of our business...

[ZahZoo]

Ummm Nick... we were discussing Obama's next term and current business of the nation. Can you please pay a little fucking attention..?

I'm sure you can go sell insurance on the Geico discussion board...

[ELVIS]

My point Elvis... is the public continuing the discussion at current levels. Why just pony up every 4 years and then go back to whatever you were doing.

I'm not advocating politicians keep selling snake-oil like it was a month ago. How about "we the people" keep asking tough questions. Keep voicing things like... enough gridlock, enough wars, enough wasteful spending... etc...

In simple terms don't stop the dialog and don't tune out and allow Washington to resume. Come on... we've got the stamina to do it.

I hear you, but the real issue needs to be put on the table and that is the the economy, the totally out of control spending (including military spending) the idea of huge stimulus and bailouts and QE and on and on...

I just don't see Washington ever seriously adderssing the problem and I think collapse is coming sooner than later...

And it won't happen over night, they'll just keep printing money and inflating it to death...