House GOP leadership is livid over Obama's speech, threatening to blow everything up, source says
— Ryan Grim (@ryangrim) December 31, 2012
◼ DEAL: NO CUTS! - Washington Post via Drudge
◼ Breaking: Obama to speak about fiscal cliff at 1:30; Update: Tax deal done? Update: Sabotage? - HotAir
A “senior Republican side” tells Reuters that a majority of Senate Republicans are expected to vote yes on the deal. Republicans may not be the main stumbling block anymore, though. There’s a lot of angst among liberals this morning about Democrats backing off of the $250,000 threshold for new taxes, with people as prominent as Tom Harkin dumping all over the proposed deal.
◼ On the Fiscal Cliff, Republicans Are Blowing a Great Deal - Bloomberg Business Week
With the caveat that no reporter is privy to the details of the offers being swapped, here is the deal that seemed to be emerging: Democrats would get an extension of unemployment benefits for 2.1 million people; they’d patch the alternative minimum tax for a year to protect the middle class from sharp tax hikes; and they’d implement a “doc fix” to ensure that Medicare reimbursement rates to doctors don’t fall precipitously and limit patients’ access to medical care. Republicans would get to preserve Bush-era income tax rates for households making up to $400,000 (rather than the $250,000 limit Democrats prefer). They’d also get a lower tax rate and a much higher threshold for inheritance taxes (set to revert to 55 percent on estates of more than $1 million on Tuesday). And significantly, Republicans would hold onto their greatest point of leverage in upcoming negotiations over entitlement cuts, because the deal wouldn’t raise the debt limit.
Here’s what’s important about everything Democrats would get: It’s temporary; everything expires (presumably) within a year. Here’s what’s important about what Republicans would get: it’s permanent. The tax rates won’t expire.
That means Democrats are offering a huge gift to Republicans and getting almost nothing in return because on Jan. 1, if no deal is struck, Democrats will get even more revenue than they’re asking for without conceding a thing. And if, as polls suggest, voters would blame Republicans for going over the cliff, Democrats are also offering to save Republicans from their worst impulses—which, at least for the time being, since they haven’t yet agreed, is to reject this deal.
◼ GALLUP: Disapproval of Obama Has Climbed 5 Points Since Christmas... - CNS News
“@toddstarnes: RT @jamiedupree: Sen Bob Corker R-TN: "I know the President has fun heckling Congress...he probably lost some votes"”
— Jordan Sekulow (@JordanSekulow) December 31, 2012
◼ House 'Tea Party' Members Appear to Hold Key Votes - Patriot Update
Look beyond today's talk of the Fiscal Cliff’ to see the PRESENT LAW $1 Trillion Tax Hike to pay for Obamacare bit.ly/VpLoUP
— Grover Norquist (@GroverNorquist) December 31, 2012
◼ OBAMA DEMANDS MORE TAX HIKES NEXT YEAR
