Courtesy of Mish.
“Fiscal Cliff” Talks Turn Sour
Yesterday, the sides were so far apart on critical issues that I wondered how a deal could be made in two days. The market saw it otherwise, mainly on hype Obama Offers Concessions Regarding Tax on Wealthy.
Today is a different story as “Fiscal cliff” talks turn sour, Obama threatens veto.
Talks to avoid a fiscal crisis appeared to stall on Wednesday as President Barack Obama accused Republicans of digging in their heels due to a personal grudge against him, while a top Republican called the president “irrational.”
Boehner and Obama have each offered substantial concessions that have made a deal look within reach. Obama has agreed to cuts in benefits for seniors, while Boehner has conceded to Obama’s demand that taxes rise for the richest Americans.
However, the climate of goodwill has evaporated since Republicans announced plans on Tuesday to put an alternative tax plan to a vote in the House this week that would largely disregard the progress made so far in negotiations.
Obama threatened to veto the Republican measure, known as “Plan B,” if Congress approved it.
Boehner’s office slammed Obama for opposing their plan, which would raise taxes on households making more than $1 million a year and is a concession from longstanding Republican opposition to increasing any tax rates.
“The White House’s opposition to a backup plan … is growing more bizarre and irrational by the day,” Boehner said through his spokesman, Brendan Buck.
Concession Nonsense
Reuters writers Matt Spetalnick and Mark Felsenthal and said “Boehner and Obama have each offered substantial concessions that have made a deal look within reach.”
What “substantial” concessions were those? This is how I stated things yesterday.
Significant Differences…
