December 3rd, 2012
03:39 PM ET

House GOP proposal on fiscal cliff rejects Obama's tax plan

Negotiations on a deal to avoid the fiscal cliff got a jump-start on Monday with House Republicans offering a counter-proposal to President Barack Obama, but continuing to reject his call for higher tax rates on the wealthy.

The GOP proposal would result in $2.2 trillion in deficit savings over the next decade, including $800 billion from tax reform, $600 billion from Medicare reforms and other health savings, and $600 billion in other spending cuts, House GOP leadership aides told reporters.

House Speaker John Boehner called it a "credible plan that deserves serious consideration by the White House."

The move followed a weekend of accusations by both sides that the other was not serious about reaching a deal to avoid the automatic tax hikes and spending cuts scheduled to take effect January 1 - what is known as the fiscal cliff that economists say will damage U.S. growth.

There was no immediate response to the Republican plan, which congressional aides said would be sent in a letter to the White House.

soundoff (17 Responses)
  1. Somebody

    taxing on the rich only save a trillion dollars over a ten year period. That's a hundred mill a year. With the current admin spending over a trillion a year how in the hell is that gonna solve anything. Another way to put it is the savings would only equal seven days of spending. These dems are crazy to think that taxing the rich more is gonna solve anything. They are not serious about getting this deficit under control and it's just sad

    December 3, 2012 at 4:54 pm | Report abuse |
    • Benn

      I'm sorry, but your math seems incorrect. If we save 1 trillion and are spending 1 trillion yearly, then that is 365 days. Not 7. It's not great but is a start.

      December 3, 2012 at 5:07 pm | Report abuse |
    • Somebody

      Benn read my post again please. My math is sound. A trillion dollar savings over a TEN year period equals 100 mill a year. The current admin spends way over a trillion a year. Start cutting the nanny programs and that's where the true savings are but thats obamas base so that won't happen

      December 3, 2012 at 6:29 pm | Report abuse |
    • Benn

      1 trillion divided by 10 years equals 100 billion each year. Not 100 million. That is one tenth or 36.5 days per year. 36.5 * 10 = 365 or 1 year

      A trillion dollars savings over 10 years = 100 billion each year. Not 100 million.

      Not trying to be rude but ask your child or someone else to do your math.

      December 3, 2012 at 8:43 pm | Report abuse |
    • Nate

      Sorry, but Benn is correct. If you don't believe then maybe ask your child's math teacher to verify.

      December 3, 2012 at 8:50 pm | Report abuse |
  2. the prophet

    Face it the US is bankrupt and so is most of the population, even taking out the home deduction will not help, on the contrary it will slow the economy thereafter there will be a revolt, including the 5 branches of the Government.

    December 3, 2012 at 7:46 pm | Report abuse |
  3. Benn

    1 trillion = 1,000 billion
    1,000 billion / 10 years = 100 billion

    Not 100 million

    I'm sorry. Hope I wasn't rude. Math is math.

    December 3, 2012 at 8:45 pm | Report abuse |
  4. Hide Behind

    The cliff is not going to do anything, all this political bs in reality is for is to take a few steps back..

    December 3, 2012 at 11:17 pm | Report abuse |
  5. TvNyC

    Life is good. Politics are bad. Obama is good, Boehner sucks

    December 3, 2012 at 11:27 pm | Report abuse |

    Sent from my BlackBerry® smartphone from du

    December 4, 2012 at 12:06 am | Report abuse |
  7. Hide Behind

    All politicos are doing is to try and improve US credit rating.
    Same process in reality as what is happening to many nations who spend too freely and now find their going to have to begin austerity programs before they can borrow.
    We, US need to show we will have additional income in future to pay our creditors, those ee borrow from.
    we are only refinancing the nation.

    December 4, 2012 at 1:07 am | Report abuse |
  8. Hide Behind

    I wish people would look beyond their zippers and understand the repercussions from this austerity program.
    #1 It is going to cost jobs, lots of jobs,and mainly to the ones who are barely above, lower middle class, and under.
    #2 It means elderly females will be largest grouping to have to sacrifice. And barely skilled care workers will be first female grouping to go down.At end of 10 years for those retiring now will be losing about 1600 a year in buying power from what they earn today. REmember females live longer and are largest group that depend upon SS.

    December 4, 2012 at 1:24 am | Report abuse |
  9. Hide Behind

    The SS program that gives extra credit dollars for men in military will be eliminated and show true wages thereby lowering benefits at retirement.
    Already many nursing home either run in shady area. Of patient care because of low medicare medicade allowable cost. And lessening areas of illness coveredare going out of buisness but not before the cut employees wages and benefits ti the bone and increasing cost to patients.
    #3 andmost serious is export of all goods from US at prices below worl markets as is already being done with coal and oil.We pay more for imported than what we sell by export itbrings hard currency and royalty direct to oversites that now fund oversites more than general fund programs.

    December 4, 2012 at 1:44 am | Report abuse |
  10. fernace

    Right On, ronvan! Aren't We, the People the true government & people in congress our reps wo are supposed to speak for Us!? Well, they don't, which is clear & has been for the past 4 years & counting! Also, since we pay for Medicare & SS, they should be streamlined to eliminate fraud, such as being used as politicians private piggy banks to "borrow" from to protect their pet projects, which they've been doing for years! They are in charge of managing the $$ & have done a poor job of it, but we keep electing them, so here we are! Holding the bag once again! It's a bad habit we have to break, otherwise, that old saying about expecting a different outcome & insanity holds true & that's on us!!

    December 4, 2012 at 10:15 am | Report abuse |
  11. Scilon

    The big difference between the Presidents Senate passed plan and GOP plans is that the presidents plan does not yet look for savings in medicare, but does raise money by limiting the first $7million dollars of inheritance to tax free.
    Personally, I think a little more inheritance tax is in order and we should take the GOP cuts and the presidents revenue for a $2.5 trillion dollar plan.

    December 4, 2012 at 10:54 am | Report abuse |
  12. Ancient Texan

    Up until now there is no negotiating or compromising...just one-upmanship is the name of the game. POLITICS!

    December 4, 2012 at 10:11 pm | Report abuse |