On Thursday night, House Speaker John Boehner was forced to pull his 'Plan B' bill from the House floor. The bill did not carry much traction through the Democratic-controlled Senate and was threatened to be vetoed by President Obama. Nonetheless, politics in the Beltway continued.
The 'Plan B' bill would have affected high-income earners over $1 million annually, allowing their taxes to go up from 35% to 39.6%, as well as increasing their capital-gains and dividend tax rates from 15% to 20%.
The biggest question as Congress members walk away for a recess with the days to reach a deal seriously numbered is how the GOP will be able to regroup and put forward a proposal. President Obama has remained firm in his stance that the tax rate on high-income earners needs to go up in order to protect 98% of Americans. Recent polling shows many Americans side with the President, with 49% trusting the President's handling of the fiscal cliff talks compared to 31% for the House Republicans.
The year is winding down and we're nearing the January 1 deadline. A senior White House aide has said President Obama will not join his family in Hawaii if a deal isn't made, and the House and Senate leaders are ready to call back members for votes one week from today if a deal appears near.
Boehner's 'Plan B' has failed, the House GOP is in disarray, and more and more Americans support President Obama's calls for a 'compromised deal.' What's next?