Senate "fiscal cliff" negotiations hit major setback over GOP demands that it include chained-CPI

[ProSense]

Senate "fiscal cliff" negotiations hit major setback over GOP demands that it include chained-CPI

by HoundDog

CNN's Dana Bash just reported that the Senate talks to resolve the fiscal cliff have hit a major setback over Republicans demands that even a scaled-down "mini-deal" for short-term compromise include the controversial "chained-CPI" concession, previously offered by President Obama for the more complete package of a "grand bargain," in Source:Fiscal cliff talks see major setback.

Washington (CNN) – A Democratic source familiar with the talks tells CNN they have hit a “major setback” because Republicans are now insisting that any fiscal cliff deal include “chained CPI," which Democrats consider a “poison pill.”

The Democratic source says they understand the president offered this in talks with House Speaker John Boehner, but Democrats say that was in the context of a larger deal - in exchange for changes to the way the debt ceiling is approached - which is not in the plan anymore.

Senators have a self-imposed deadline of 3:00 p.m. ET, before reporting to their rank and file that the negotiations have failed to achieve a resolution, at their unusual Sunday afternoon session.

Both Senate Majority Leader Harry Reid, and Minority Leader Mitch McConnell just delivered political posturing speeches blaming the other side for the stalemate, although Reid was more gracious granting the McConnell has negotiated in good faith, but that the two side are just too far about.

The two sides are still reported to be unable to agree on the threshold level of the middle-class tax cut extensions, -- with Democrats proposing $250,000 and some Republicans insisting on $400,000 and extensions of the real estate tax. Democratic Senator apparently are willing to give on one, or the other, but not both, in a mini-deal.

CNN is also told that if things don’t change by the time senators meet at 3 p.m. ET, Democratic leaders will have to tell their rank and file that things are not there yet.

CNN reports their Democratic source also says:

This source further said that they will decide by early this evening whether to pull the plug and put the fallback bill on the floor, a bill that keeps tax rates in place for those making less than $250,000, fixes the Alternative Minimum Tax, includes the so-called doc fix, and extends unemployment benefits.

I don't believe Democrats should sacrifice the chained-CPI even for a "grand-bargain," let along a "mini-deal.

http://www.dailykos.com/story/2012/12/30/1174849/-Senate-fiscal-cliff-negotiations-hit-major-setback-over-GOP-demands-that-it-include-chained-CPI

Up or down voted on fallback bill or no deal!

[MotherPetrie]

1. And who didn't see THIS coming....

[plethoro]

7. I did. I believe this whole thing is kabuki

theater with play and character movements drawn long ago. Our only hope is Reid hanging tough, which is no sure thing. The ball is in Obama's court, the only player who had a chance of cutting Social Security.

[iemitsu]

2. Surprise, surprise, it was easy to predict that republicans would make this demand

since Obama is the one who made the suggestion in the first place.
Obama had no business placing Social Security on the table during the budget debate. If the cost of living formula is adjusted to rip us off during retirement Obama will get the blame. He will deserve it. That will be his legacy.
There is no hope that Americans will ever recover what has been taken from us when those leaders, supposedly on our side, are willing to set us up like that.
It ought to be constitutionally illegal for congress to pass (or the president to propose) any legislation that harms (directly or indirectly) the bulk of the American people. The oath, that our elected officials swear to uphold, requires that they legislate for the common good. That needs to be the litmus test for all actions by congress.

[ProSense]

5. Actually,

"since Obama is the one who made the suggestion in the first place. "

...it was a Republican demand.

MR. CARNEY: Well, let’s be clear about one thing: The President didn’t put it on the table. This is something that Republicans want. And it is --

http://www.democraticunderground.com/10022094994

The President included it in a previous offer, which Boehner rejected.

It is no longer in the current proposal, and now Republicans are demanding it.

[Cha]

14. No, that's a fallacy.. President Obama did Not

come up with that in the first place.

[spanone]

3. their way or the highway...

[leftstreet]

4. So...GOPers are demanding what Obama promised

What's wrong with that?

[ProSense]

6. "What's wrong with that?"

Too late. That is unless you think Senate Democrats should give Republicans what they want?

[pnwmom]

8. He didn't promise that.

He proposed that as part of a package that they turned down. Context is everything.

[leftstreet]

10. My mistake. Obama 'proposed' it. Gamechanger there!

not

[bigtree]

15. is this how you get your news?

explains a lot.

[pnwmom]

16. He proposed it AS A PART OF A PACKAGE that included protections

for vulnerable groups and raising the debt limit for two years.

But you want to pretend that he offered something he didn't.

[1-Old-Man]

9. voting for a chained CPI is like wrapping one's political life in a plague-ridden blanket

[democrattotheend]

11. NO WAY! Not unless it includes the debt ceiling

As bad as chained CPI is, if it's the price of taking the debt ceiling away as a weapon it might be worth it compared to the far more draconian cuts the GOP is demanding to raise the debt ceiling. Cutting $1 from entitlements for every dollar the debt ceiling is raised, as the GOP is demanding, would require much more than chained CPI.

However, if the president were to agree to chained CPI without a debt ceiling raise, that would give the GOP leverage to demand additional entitlement cuts beyond chained CPI as the price for raising the debt ceiling, and that would be unacceptable. I really hope President Obama is only willing to trade chained CPI for a long-term raise of the debt ceiling, because if he gives them that now we are totally screwed in February.

[ProSense]

12. No. n/t

[Mass]

13. Not surprising. The GOP does not want a deal.

They knew the Chained CPI was a deal breaker, so they brought it back.

[cthulu2016]

17. That's craziness. Where did they get the idea we would ever accept that?