Source: Fiscal cliff talks see major setback

[brooklynite]

Source: CNN

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.

...snip...

This Democratic source did not want to be identified because of the closed nature of the talks, but was clearly giving the information to CNN to make public the Democrats’ point of view and push the Republicans to give in on this high stakes issue.

The source also told CNN that Democrats are currently “going outside their comfort zone” in these talks with regard to tax rates - keeping tax rates in place for higher income households than the president wants. The source also said Democrats are negotiating with Republicans on extending the current lower estate tax rate, a big issue for many Republicans as well as moderate Democrats.

Read more: http://politicalticker.blogs.cnn.com/2012/12/30/source-fiscal-cliff-talks-see-major-setback/?hpt=hp_t1

[pasto76]

1. wow, thanks all you screaming liberals for handing them this chip

absolutism vs absolutism. And There were actually movements after the election to marginalize some of these radicals in the house. Seems like, thanks to the 'democrats', the right have some steam again.

tax increases on those with more than $1M (adjusted gross income, of course) is what we're going to get because of this, and that isnt going to help very much at all.

thanks everyone for turning the plan B failure of ten days ago into a major bargaining position for the right. 9 days ago the President had every single advantage for this fiasco. SS cuts were off the table. everything except 800 billion in tax increases was off the table. So you were all screaming, literally, over nothing. Thanks for undermining that. awesome

[Demeter]

6. You are entirely missing the point, my friend

Chained CPI is to be strictly avoided, and the Democrats in Congress are doing their job to protect us, the 99% by loudly and pulblicly opposing it.

The GOP is again throwing themselves in support of something that Obama said, which will lose them more of their base, as well as ensure that Chained CPI fails.

And as for the President, he is either exploiting the GOP's knee-jerk reactionary habits, or he is incompetent. The jury is still out on that.

[alcibiades_mystery]

7. It will be $388,500, the current top tax bracket

That's why the papers say "around $400,000." It won't be $1 million.

[Marr]

10. What the hell are you talking about?

You'll have to explain this particular tortured excuse for blaming the left in greater detail, because it makes zero sense.

[thesquanderer]

2. Obama making two contradictory arguments?

According to the post at

http://www.democraticunderground.com/10022097448

Obama is in favor of chained CPI, saying that, despite its unpopularity with his base, he thinks it will ultimately make SS stronger.

Now this article says that he's only willing to do it "in exchange" for a fix to the debt ceiling debacle. That implies he feels he is giving something up on SS, to get something else.

If he genuinely feels that chained CPI makes SS stronger (or at least if he states that that's the case), it would seem hard to look at it as a bargaining chip, because rather than it being a concession, i.e. doing something he would rather not do, it's something he actually wants, that he thinks is good. I don't see a way to reconcile the two arguments. How can you say, "Give me this thing I want, or else I won't give you this other thing that I also want"?

[proverbialwisdom]

5. Opacity and transparency are both valid tactics during negotiation. Why should that bother anyone?

[Panasonic]

3. Check. And. Mate.

Obama wins.

Chained CPI is now permanently off the table.

[ISW]

4. I hope you are right!

[Diclotican]

8. brooklynite

brooklynite

Nasty to put it bluntly - but then again, it all depend of who blink first - the democrats or the Republicans - if Obama just doesn't blink at the last minute - the republicans will be given a black hand (no offense) they never will be able to wash away from them...

President Barack H. Obama Do not blink - do not screw the "little man" on the alter of the "big man"...

Diclotican

[JDPriestly]

9. The chained CPI takes money from seniors who paid the high tax rates of earlier eras

and hands that money to the working people in the middle class and the wealthy. That is so wrong.

Why can't people see what they are doing?

It's called arithmetic reasoning. Were you good at working word problems in school, President Obama? Cause I don't think you understand what you are saying.

You are taking money from middle class people who paid high tax rates in their working years and handing it to people now working so that the people now working will not have to pay the tax rates that seniors formerly paid.

That stinks. Short and simple. That stinks.

It is a dirty trick clothed in language that makes it sound so reasonable.

But it is not reasonable at all.

It's bad math, bad reasoning. It's seriously unfair.

[judesedit]

11. I say go over the cliff. Get the revenue rolling in.2013 is here.New people new negotiations. 2014s

around the corner.