The Latest Fiscal Cliff Rumor

In case you’re following the rumors and trial balloons that are leaking out of the fiscal cliff negotiations, here’s the newest one:

The details, via a source familiar with the negotiations, include: a movement on revenue demands to $1.2 trillion from an initial $1.6 trillion, a permanent extension of Bush-era tax rates for incomes less than $400,000 (Obama initially set the threshold at $250,000), $1.2 trillion in spending cuts, a “fast track process” for corporate and individual tax reform once the new Congress convenes, permanent extension of tax extenders and the alternative minimum tax, an extension of unemployment benefits set to expire at the end of the year, additional stimulus in the form of infrastructure spending and a two-year debt limit increase.

The White House proposal would also allow the payroll tax cut to expire, and call for $130 billion in savings from Social Security benefits by adjusting the program’s inflation index. The offer would include protections for the most vulnerable recipients, the person said.

The Social Security and Payroll Tax things suck, and I have no idea what the spending cuts will ultimately look like, so whatever on that. Look, this isn’t the deal, it’s the deal right now — maybe. Get outraged or ignore this however you’d like.

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  • trgahan

    I am more outraged over the media appearing ready to report nothing but “Obama loses, Republicans Win!” and progressive “thinkers” chomping at the bit to yell “betrayal!” regardless of what the final deal is.

  • http://phydeauxpseaks.blogspot.com Bob Rutledge

    I suspect there will be a lot of ignorant outrage.

  • http://twitter.com/PeterBWest Peter Bockenthien

    What’s there to be ignorant about cutting my Dad’s SS benefits?

    I think Obama is simply putting SS out there because the GOP is too chicken to do it. So Obama does it for them, calculating that people who’s sole income is from SS will pick up the phones and call their GOP reps.

    It had better be.

    • gescove

      I certainly hope you’re right. Anyone who knows anyone getting by on Social Security now knows this would be a devastating cut in benefits.

  • SlapFat

    I’ve thought it best to just go over the misnomer known as the “fiscal cliff” and negotiate tax cuts for the middle and low class from there. Federal spending is already very low and has been so for the entirety of this administration…. in the midst of a recession. None of this is President Obama’s fault, of course, and anyone that says otherwise isn’t paying attention to this debate. The way that the “fiscal cliff” is being painted as some kind of imminent Doomsday by our media is really annoying.

  • gescove

    I was ready to take outrage for $100 for the chained CPI trial balloon, Bob. It’s technocrat-speak for taking the food off the plates of desperate seniors. The savings isn’t the result of CPI magic, it’s the result of slashing benefits. I was somewhat reassured when Speaker Boehner (R-Asshat) scolded that the President’s offer was too mean to millionaires and too lenient on starving widows.