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Sunday, December 2, 2012

Geithner and White House Draw Line at 2% Tax Increase on Wealthy

George Wenschhof

Treasury Secretary Timiothy Geithner, appearing on all five of the major Sunday morning political taks shows, made it clear there will be no deal on the "fiscal cliff" unless tax rates are increased on the upper 2% of wage earners.

A frustrated House Speaker John Boehner said he told Treasury Secretary Tim Geithner “you can’t be serious,” when he was presented the proposal by Geithner.

Senator Joe Lieberman (I-Conn.) said it was time for President Obama to get directly involved in negotiations.

At issue, is the ratio of spending cuts to tax inceases in an agreement.  The proposal by Geithner contained a 4-1 ratio of tax increases versus spending cuts.  The highly regarded Simpson-Bowles plan contained a 3-1 ratio of spending cuts versus tax increases.

The so-called "fiscal cliff" with previously agreed cuts, will go into effect the first of the year, if no agreement is reached by Congress before then.

Meanwhile, President Obama has taken his position to the voters, asking them to contact their representatives in Congress by saying "protect my 2K", referring to the average two thousand dollars middle class wage earners would lose if Republicans in Congress do not agree to extend their tax cuts.

Stay tuned.


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