Thursday, December 20, 2012

FOXNews.com: Republicans plan showdown votes on fiscal crisis over Dem opposition

FOXNews.com
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Republicans plan showdown votes on fiscal crisis over Dem opposition
Dec 20th 2012, 13:22

House Republicans are charging ahead Thursday with a pair of votes aimed at averting tax hikes scheduled to kick in 12 days from now -- but the move is fraught with tactical risk, as Democrats have effectively boycotted the legislation. 

The bills expected to come for a vote by Thursday evening amount to what House Speaker John Boehner is calling a "Plan B." One bill would prevent tax hikes for everyone save for those making more than $1 million. In a late decision, Republicans also introduced a bill that would temporarily replace automatic spending cuts set to hit in January. 

But while GOP leaders are gradually winning the support of their rank-and-file, Democrats in both chambers as well as President Obama are adamantly opposed. The White House on Wednesday issued a veto threat. 

Boehner and Obama had until early this week been engaged in seemingly productive talks toward a compromise package. The move to draft a "Plan B" could be aimed at strengthening Boehner's negotiating position, as he tries to extract more spending cuts and more modest tax rate hikes from the White House as part of any deal. But Democrats were so angered by the new proposal that the future of talks is unclear. 

Boehner on Wednesday put the onus on the president to get Democrats on board with "Plan B." 

"Tomorrow, the House will pass legislation to make permanent tax relief for nearly every American," Boehner said, during a press conference that lasted less than a minute. "Then the president will have a decision to make. He can call on the Senate Democrats to pass that bill or he can be responsible for the largest tax increase in American history." 

Later in the evening, Democrats boycotted the meeting where lawmakers were setting the terms for debate on Thursday. Democrats, in a written statement, called the process "outrageous and empty," and a "hoax." 

Senior administration officials accuse Boehner of at least temporarily derailing fiscal talks with the "Plan B" move. During his own press conference Wednesday, Obama urged Republicans to "peel off the partisan war paint." 

Republicans, though, said the White House was being unreasonable. 

Boehner spokesman Brendan Buck said the "opposition to a back-up plan to ensure taxes don't rise on American families is growing more bizarre and irrational by the day." 

Republican House leaders said it's important for Washington to have an alternative plan just in case Boehner and Obama cannot come to an agreement. 

Complicating the situation are the growing demands and red lines of the Democratic and Republican bases. 

Rank-and-file Democrats and liberal advocacy groups have grown increasingly vocal about a proposal that would reduce cost-of-living increases in Social Security. Obama recently agreed to put that on the table. 

"The less money our Social Security recipients -- including 9 million veterans -- are able to spend, the less money goes to the businesses that create jobs," Rep. Raul Grijalva, D-Ariz. "It's a Beltway fig leaf that I will never support, and I call on my colleagues to make their feelings known as soon as possible." 

Conservatives, though, were equally dismayed that Boehner had dropped his absolute opposition to tax rate increases. Even for the Plan B, one Republican member told Fox News "there's a lot of angst there" -- though Republican House Leader Eric Cantor claims there are enough votes to pass it. 

Any deal that increases taxes above a certain income threshold, such as $1 million, would only apply to income over that threshold. 

Despite the drama, a senior administration official said they believe both parties are still extremely close on a massive $4 trillion debt deal if both sides give in a little more. 

Obama said Wednesday that "I'd like to get it done before Christmas" and that he remains "optimistic." 

But both sides appeared to once again be digging in. Obama said Wednesday he's met Boehner "at least half-way," and again refused to agree to a deal that tees up a fight over the debt ceiling early next year. 

Some conservatives were hoping to strike a tax agreement before the end of the year, yet renew their campaign for spending cuts as part of the debt-ceiling debate.

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