Boehner Fiscal Cliff: 'Plan B' Collapses, No End in Sight for Fiscal Cliff 2013
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?