Obama Hardens On Raising Tax Rates, Divided Republicans Plan Next Move

President Obama told Bloomberg TV on Tuesday night that Republicans would have to agree to tax rate increases as part of any plan to avoid going over the “fiscal cliff.” (Screenshot from Bloomberg.com)

In his first post-election interview Tuesday night on Bloomberg TV, President Barack Obama insisted that Republicans were going to have to agree to tax rate increases as part of any plan to avoid going over the looming “fiscal cliff” of automatic tax rate increases and spending cuts.

Republicans are divided over House Speaker John Boehner’s latest GOP offer to increase tax revenues by capping tax deductions.

As Rick Klein of ABC News tweeted, it came as no surprise that the White House rejected Boehner’s offer. The real news may be the blowback from right, prompting Klein to ask, “reason for optimism?”

At a news conference on Wednesday, Boehner said Republicans are “ready and eager” to talk with President Obama about avoiding the fiscal cliff. He said he put out a “good faith offer” and the White House needs to respond with a plan that could pass both houses of Congress.

Bloomberg: Obama Lesson on Debt Talks Is Standing Firm on Tax Rates
Boston Globe: GOP deduction cap would hit the comfortable
Politico: GOP risks rift with right on taxes

Guest:

Rick Klein, senior Washington editor for ABC News. He tweets @rickklein.

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SuzanneNYC

Robin! Calm down! The House could act by voting on the bill to retain the tax cuts for the middle class passed by the Senate earlier this year. If Boehner can’t get the Republicans to act like responsible legislators, why should the Democrats concede anything? Just go off the cliff and deal with it when the new Congress is sworn in.
http://www.facebook.com/pgtwilliams Pam Williams

No offense – but those lazy bums in Washington need to stop worrying about how taxing the over $250K per year will affect their own taxes and do the right thing and push this through. We, the middle class, do not want to see a cap on tax deductions. As WE all know – that will still affect middle income and bring in little revenues only. Raising taxes on those above $250K per year will be a substantial increase. Then – dear Washington leaches – cut back the ridiculous spending on things that benefit the wealthy and corporate machines only. Place yourselves on the budget tightening that you have subjected your bosses to (yes – WE the People)! Live with the same type of healthcare we now enjoy (let’s see what you think of Obama care then); Live with the same Social Security Retirement (I’m sure that will right itself under those conditions as well). You have been unsuccessful employees of We the People for far too long. We the People will be watching you very CAREFULLY these next four years. And as you witnessed from the last election, you will loose that cream puff job you created if We the People continue to take the “short end of the stick” for much longer. So… You’ve received your marching orders – get to it!!!!