In an editorial, The Wall Street Journal described the fiscal cliff as "an entirely made-in-Washington fiasco that is the result of bad policy choices."[1]
- December 29, 2012: Reid and McConnell proposed various plans to avert the fiscal cliff, but confidential sources say both Senators "were still far apart from a deal."[2][3][4] [1] Various elected US officials said they are concerned how the fiscal cliff negotiations will impact their reelection campaigns and the public image of the US Congress.[2]
- December 28, 2012: According to confidential sources,[5][6][7][8][9] the 112th Congress may not pass legislation to avert the fiscal cliff until January because Congress will not reconvene until December 30, 2012 and then meet on December 31, 2012.[2] The 113th Congress is scheduled to convene January 3, 2013 at 12 p.m.[3]
- Four bills are being discussed.
- H.R. 8, the Job Protection and Recession Prevention Act of 2012, would extend the expiring 2001 and 2003 Bush-era tax cuts for one year.[4]
- H.R. 6684, the Spending Reduction Act of 2012, would prevent the scheduled sequestration cuts.[5]
- Senate-passed Middle Class Tax Cut Act (S. 3412), which was voted on in the Senate in July 25, 2012, would extend for one year the Bush-era tax cuts on the first $ 250,000 of income reported on joint returns and would patch the alternative minimum tax for 2012, but not 2013.[6]
- H.R. 15, the House-passed Middle Class Tax Cut Act, mirrors the Senate-passed bill with substantial similarities.[7]
- December 17, 2012: According to media reports, various proposals were exchanges between President Obama and House Speaker Boehner to deal with the fiscal cliff, such as changing the federal government's standard measurement of inflation to a "chained" consumer price index,[10][11] allowing marginal tax rates to increase,[10][11] a one-year or two-year increase in the debt ceiling,[10][11] and reduced spending, by various methods, on Medicare and Medicaid.[11][12]
December 13, 2012: Both parties have publicly stated the negotiations are at a stand still.[13][14]
Several commentators have reported that a deal is not expected until after December 25, 2012 but not before December 30, 2012.[15][13][16][17][18]
However, one commentator described the parties as "playing familiar roles in a largely choreographed drama."[19][20][21][22]
Department of Defense
On December 5, 2012, the Department of Defense announced it was planning for automatic spending cuts, which include $500 billion and an additional $487 billion due to the 2011the Budget Control Act, due to the "fiscal cliff".[23][24][25][26][27]
According the newspaper Politico, Department of Defense declined to explain to House of Representatives Appropriations Committee, which controls federal spending, what its plans were regarding the fiscal cliff planning.[28]
Insert to fiscal cliff talk page
The IRS has programmed its computer systems based on a reset or "patch" of the alternative minimum tax (AMT).[29][30][31][32][33][34] According to Steven Miller, "the IRS would, at a minimum, need to instruct more than 60 million taxpayers that they may not file their tax returns or receive a refund until the IRS completes the necessary systems changes", which will be about March 2013.[29][30][31][32][33][34] Without the "patch" of the AMT, an estmated 28 million families will have to pay AMT.[29][30][31][32][33][34]
On December 5, 2012, Senate Minority Leader Mitch McConnell (R-Ky.) offered to vote on President Obama’s proposal, as stated by Treasury Secretary Tim Geithner, as an amendment to H.R. 6156, the Russian trade bill, in the Senate.[35][36][37][38] However, Senate Majority Leader Harry Reid, (D-Nev.), prevented the vote.[35][36][37][38] Reid's reported reasons was that the Russian trade bill "is to protect American jobs"[35][37] and “there is no Geithner proposal."[38] McConnell said he would introduce the bill as "a stand-alone vote."[35][38] On December 5, 2012, Geithner said, during an interview on CNBC,[8] that the Obama Administration is "absolutely" willing to go over the fiscal cliff.[39]
On November 16, 2012, the US leaders announced that President Obama (D) met with House Speaker John A. Boehner (R-Ohio) House Minority Leader Nancy Pelosi (D-Calif.) Senate Majority Leader Harry Reid (D-Nevada) and Senate Minority Leader Mitch McConnell (R-Ky.) "to discuss" the plan "to work on" a plan "over the weekend" "to create a plan" that would be ready to present the week of November 26, 2012 concerning the fiscal cliff.[40]
November 6 2012
As of November 6, 2012, Obama does not like-acroos-the-board spending cuts and wants to replace the cuts. Senior White House officials recommend a veto of any bill "that averts defense cuts while leaving intact non-defense cuts or not include an increase in tax rates for top earners."[41]
Obama wants to continue to extend the George W. Bush tax cuts for most Americans."[41]
Insert for Fiscal cliff November 30 2012
Treasury Secretary Timothy Geithner is Obama's lead negotiator about the fiscal cliff and the increase in the 2013 debt limit.[42][43]
As of November 30, 2012, Obama is supporting an undeclared "amount of spending cuts, "$ 1.6 trillion in higher taxes" over ten years, and cuts of "$ 400 billion from Medicare and other benefit programs over a decade."[43][42] Also, Obama wants to included "an extension of the 2 percentage point payroll tax cut" and spend "at least $ 50 billion" in 2013 "to boost the economy," which "would add to the budget deficit."[43][42]
On November 29, 2012, Treasury Secretary Timothy Geithner presented to congressional leaders a plan to correct the fiscal cliff.[43][42]
- ^ WSJ editorial, published December 29, 2012,
- ^ a b RAJU, MANU; Burgess Everett; Steven Sloan (12/30/12 at 6:57 AM EST). "Lawmakers fear voter backlash on fiscal cliff". Politico. Retrieved 30 December 2012.
{{cite news}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ RAJU, MANU; Carrie Budoff Brown; John Bresnahan; Steven Sloan; Jake Sherman (12/28/2012 at 12:20 PM EST updated 12/29/2012 at 12:28 PM EST). "OBoma to Congress: It's time for a deal". Politico. Retrieved 30 December 2012.
{{cite news}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ Cowan, Richard (Dec 30, 2012 9:21am IST). "U.S. Senate leaders work to avoid New Year's 'fiscal cliff'". Reuters India. Retrieved 30 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help); Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ "US poised to go off 'fiscal cliff': Senator Reid". MSN News. December 27, 2012. Retrieved December 28, 2012.
- ^ New, Catherine (Posted: 12/27/2012 3:06 pm EST | Updated: 12/28/2012 9:18 am EST). "Fiscal Cliff Tax Hikes Are Not The Only Scary Thing That Could Happen To You On January 1". The Huffington Post. Retrieved December 28, 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ Chaddock, Gail Russell (December 27, 2012). "'Fiscal cliff': Finger-pointing furiously, Congress slouches toward deadline". The Christian Science Monitor. Retrieved 28 December 2012.
{{cite web}}: More than one of|author=and|last=specified (help) - ^ Kearns, Jeff (Dec 24, 2012 7:51 AM ET). "Lawmakers Say Time Short to Reach Deal on Fiscal Cliff". Bloomberg News. Retrieved 28 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ Baliga, Ambareesh (Dec 23, 2012 11:47am IST). "India Markets Weekahead: All eyes on U.S. 'fiscal cliff'". Reuters India. Retrieved 28 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b c McPherson, Lindsey (December 18, 2012). "BOEHNER OFFERS TO INCREASE TOP TAX RATE AS NEGOTIATIONS HEAT UP". Tax Notes Today. 2012 TNT 243-1. Tax Analysts.
{{cite journal}}: Unknown parameter|coauthors=ignored (|author=suggested) (help)CS1 maint: date and year (link) - ^ a b c d Kuhnhenn, Jim (December 18, 2012). "White House rejects Boehner's 'Plan B'". Associated Press. Retrieved 18 December 2012.
{{cite web}}: More than one of|author=and|last=specified (help) - ^ Helderman, Rosalind S. (Updated December 18, 2012 at 7:46 AM). "Boehner's, Obama's potential 'fiscal cliff' concessions draw fire from left and right". Washington Post. Retrieved 18 December 2012.
{{cite news}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b Chaggaris, Steve (December 13, 2012 at 6:43 AM). "A "fiscal cliff" Christmas?". CBS News. Retrieved 13 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ Cass, Connie (December 12, 2012 at 06:00 PM EST). "Fiscal Cliff: Why It's So Hard To Step Back". Huffington Post. Retrieved 13 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help); Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ Cheney, Kyle (December 13, 2012 08:40 AM EST). "Tom Price: We'll avert the fiscal cliff". Politico Newspaper. Retrieved 13 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ Memmott, Mark (December 10, 2012 at 7:30 AM). "Can A 'Fiscal Cliff' Deal Be Both In And Out Of Reach? Yes". National Public Radio. Retrieved 13 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ "Fiscal Cliff: John Boehner Tells Republicans Not To Make Plans For Holidays". Huffington Post. Posted: 12/12/2012 11:16 am EST | Updated: 12/12/2012 3:20 pm EST. Retrieved 13 December 2012.
{{cite web}}: Check date values in:|date=(help) - ^ "Options narrow to avert fiscal cliff". The Inquirer Digital Edition. December 10, 2012, 4:33 AM. Retrieved 31 December 2012.
{{cite web}}: Check date values in:|date=(help) - ^ WHITE, BEN (November 30, 2012 at 2:29 PM EST). "Decoding the fiscal cliff talk". Politco Newspaper. Retrieved 13 December 2012.
Both sides privately acknowledge that they are playing familiar roles in a largely choreographed drama whose precise end may not be known, but is likely to include a sizable tax hike on the order of $1 trillion, spending cuts that get somewhere close to that number and a pledge to come back next year and try really, really hard to do fundamental tax and entitlement reform.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ "Politico: Decoding the Fiscal Cliff Talk". Council on Foreign Relations. November 30, 2012. Retrieved 13 December 2012.
- ^ Ferraro, Thomas (December 6, 2012 at 6:55pm EST). "Both sides hint at renewed talks on U.S. "fiscal cliff"". Reuters USA. Retrieved 13 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help); Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ Nather, David (December 9, 2012 at 6:56 AM EST). "On entitlements, Republicans are ready to take any victory they can get". Politico Newspaper. Retrieved 13 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help); Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ a b Wright, Robert (December 7 2012, at 4:11 PM ET Comment). "Why Not Push the Pentagon off the Fiscal Cliff?". The Atlantic. Retrieved 7 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b Luis, Luis (December 5, 2012 at 6:55pm). "Pentagon Begins Planning for $500B in 'Fiscal Cliff' Cuts". ABC. Retrieved 8 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b Mount, Mike (December 5, 2012 at 03:41 PM ET). "Pentagon told to start planning for fiscal cliff cuts". CNN. Retrieved 8 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b "After months of delay, Pentagon told to plan for 'fiscal cliff'". Indian Express. December 06 2012, 15:18 hrs. Retrieved 8 December 2012.
{{cite web}}: Check date values in:|date=(help) - ^ a b Alexander, David (December 5, 2012). "UPDATE 2-After months of delay, Pentagon told to plan for 'fiscal cliff'". United Kingdon Reuters. Retrieved 8 December 2012.
{{cite web}}: More than one of|author=and|last=specified (help) - ^ SHERMAN, JAKE (December 6, 2012 at 9:16 PM EST). "W.H. to House GOP: We're not moving". Politico Newspaper. p. 2. Retrieved 8 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help); More than one of|pages=and|page=specified (help); Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ a b c Montgomery, Lori (November 13, 2012). "AMT could keep 60 million taxpayers from filing returns till March, delaying refunds". The Washington Post. Retrieved 7 December 2012.
{{cite news}}: More than one of|author=and|last=specified (help) - ^ a b c Miller, Steven (November 13, 2012). "Letter to Sander M. Levin" (PDF). IRS. Retrieved 7 December 2012.
- ^ a b c Kurtzleben, Danielle (November 28, 2012). "Accountants Agitated Over Fiscal Cliff Uncertainty". US News and World Report. Retrieved 7 December 2012.
{{cite web}}: More than one of|author=and|last=specified (help) - ^ a b c Bergin, Christopher (Posted: 11/30/2012 10:20 am). "The Other Cliff (Hint: It's in Your Tax Return)". Tax Analysts.
{{cite web}}: Check date values in:|date=(help); Missing or empty|url=(help); More than one of|author=and|last=specified (help) - ^ a b c Temple-West, Patrick (December 6, 2012). "Tax filing delay looms if no fix for minimum tax-U.S. IRS". Chicago Tribune. Retrieved 7 December 2012.
{{cite web}}: More than one of|author=and|last=specified (help) - ^ a b c Rubin, Richard (December 6, 2012 at 3:21pm). "Fiscal cliff worries IRS". Standard-Examiner. Retrieved 7 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b c d Cox, Ramsey (December 5 2012 at 04:03 PM ET). "Reid blocks Senate vote on Obama's deficit-reduction plan". The Hill. Retrieved 6 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b Benson, Guy (December 5, 2012 at 04:35 PM EST). "Surprise: McConnell Offers Vote on Obama/Geithner Fiscal Cliff Plan, Reid Objects". TownHall Magazine. Retrieved 6 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b c HALPER, DANIEL (December 5, 2012 at 3:54 PM). "Harry Reid Denies Senate Chance to Vote on Obama's Plan". The Weekly Standard. Retrieved 6 December 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b c d "Reid shoots down Obama/Geithner tax increase deal". Agriculture.com. December 5, 2012. Retrieved 6 December 2012.
{{cite web}}: zero width space character in|title=at position 28 (help) - ^ Burlij, Terence (December 6, 2012 at 9:12 AM EDT). "Obama, Boehner Resume Fiscal Talks With Phone Call". PBS NewsHour. Retrieved 6 December 2012.
Later on Wednesday, Treasury Secretary Timothy Geithner told CNBC that the administration "absolutely" was prepared to allow the country to go over the cliff on Jan. 1 if Republicans refused to back off from their opposition to raising rates on wealthier Americans.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help); Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ McPherson, Lindsey (26 November 2012). "2012 TNT 227-6 LEGISLATIVE OUTLOOK: FISCAL CLIFF TALKS RESUME. (Release Date: NOVEMBER 23, 2012) (Doc 2012-24091)". Tax Notes Today (2012 TNT 227-6). Tax Analysts.
When Congress returns the week of November 26, President Obama and congressional leaders are expected to meet again to discuss a plan for addressing the fiscal cliff.
{{cite journal}}: CS1 maint: date and year (link) - ^ a b Sahadi, Jeanne (November 6, 2012: 10:11 AM ET). "Fiscal cliff: Next president's first big problem to solve". CNN Money. Retrieved 30 November 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help) - ^ a b c d Burlij, Terence (November 30, 2012 at 8:54 AM EDT). "Republicans Unhappy With Latest Fiscal Cliff Talks". PBS NewsHour. Retrieved 30 November 2012.
{{cite web}}: Check date values in:|date=(help); More than one of|author=and|last=specified (help); Unknown parameter|coauthors=ignored (|author=suggested) (help) - ^ a b c d Gleeson, Michael M. (November 30, 2012). "2012 TNT 231-3 REPUBLICANS CALL ADMINISTRATION'S FISCAL CLIFF PLAN 'UNREASONABLE'. (Section 1 -- Individual Tax) (Release Date: NOVEMBER 29, 2012) (Doc 2012-24491)". Tax Notes Today (2012 TNT 231-3). Tax Analysts.
{{cite journal}}: More than one of|author=and|last=specified (help); Unknown parameter|coauthors=ignored (|author=suggested) (help)CS1 maint: date and year (link)