WASHINGTON, DC – There may be a chance Uncle Sam won`t go over the fiscal cliff at the end of the year.
Apparently House Speaker John Boehner has come up with a Plan B in his negotiations with President Obama.
Plan B? Does anyone else think this sounds like a bad movie?
Speaker Boehner called President Obama last night and told him he was moving to Plan B by offering to extend tax rates for people making less than a million bucks a year, but raise the rates for those making more than a million.
“I can continue to have hope that we can reach a broader agreement with the White House that would reduce spending as well as have revenues on the table. I think it would be better for our country, but at this point, having a backup plan to make sure that as few as American taxpayers are affected by this increase as possible, moving down that path is the right course of action for us,” Boehner said.
Boehner’s Plan B is nearly the same as the one former speaker Nancy Pelosi offered in a letter to Boehner back in May.
Senate majority leader Harry Reid doesn’t like the plan, because he says it won’t protect middle-class families, and he predicts the Senate won’t pass it.
White House spokesman Jay Carney agreed with Reid, adding that Plan B doesn’t have spending cuts.
President Obama’s most recent plan would raises taxes on families making more than 400 grand a year, which Boehner rejected.
“The White House offered yesterday was essentially $1.3 trillion in new revenues for only $850 billion net spending reductions. That’s not balanced in my opinion.”
So, if the White House and Congress can’t get together on Plan B, Plan C, or even Plan 9 from Outer Space, automatic across-the-board spending cuts and tax increases kick in on January 1.