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BREAKING

Boehner Agrees to Raise Taxes on the Rich

He made the concession during Friday talks, reports say

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by Mary Noble

Senior Editor t +

Image: AP

House Speaker John Boehner is doing what many rank and file Republicans will call "caving." He's agreed to Obama's plan to let taxes rise on incomes over $1 million, according to an exclusive Politico report.

Boehner's "major concession" was apparently given on condition that Obama "agrees to major entitlement cuts," Politico reveals. It's not clear how that will happen, since Obama has purportedly taken some pretty huge entitlement cuts off the table already – including the idea of raising the Medicare eligibility age.

Many ordinary Americans might be happy to see compromise, but partisans on both sides will be unhappy with Boehner's concession. Boehner will be under pressure from the right to insist on sweeping entitlement cuts. Meanwhile Obama will be under pressure from the left to withhold cuts, and push for his original tax hike on incomes over $200,000.

The reported agreement took place during Boehner's Friday talks with Obama.

Via Politico.
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209 Comments (view in Forum)

  • jessejaymes
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    Boehner has no leverage. It's time the GOP does what Rand Paul suggests. Let the Dems do what they want for 4 years and let the America public decide which party should then be in power. Obstructionist politics for the GOP is all they've done for the past 4 years. And their ratings with America has never been worse. No leverage. None at all.
  • Phreakwars
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    Agreed. The obstruction has to stop somewhere. Let the Democrats do as they want. If it helps then they can take it to the polls and vote out the Republicans, if it doesn't, Republicans have something to hit them with. I think Republicans biggest fears however... is that it will work. America re-elected Obama because we WANT HIM TO raise taxes on those who can afford it. And big deal, they are going back to the Clinton era tax rate... whoopy. You have a bunch of Faux News watching drones who act like it's the end of the world. And your right about something else... NO LEVERAGE. They can either agree to keep the middle class tax cuts, or let them expire and take the blame for raising taxes on the middle class. Obama doesn't have to make one single move at all. All he has to do, is sit back and watch.
  • jessejaymes
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    @Phreakwars That pretty much covers it. I'm not liberal at all except for socialized medicine and disagree with Obama pretty much on every social issue. BUT, the public did elect him and it's just flat out wrong for the GOP to block him at every turn and then blame him for not doing what he said he would do. Let him do it. Let's see who is right. And if he's wrong then the Dems will pay for it just the GOP is paying for Bush today.
  • humptydumpty
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    @jessejaymes wow never heard it put that way before!! lets see we will tax people even more make the beast even bigger and if we all end up either goin bankrupt or if were still alive n not starved to death or in complete tyranny then we will be ok and if not we can let the republicans have a turn!! and were supposed to be shocked that certain people would put obama back in there?wheeew

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  • Phreakwars
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    WRONG, it does ALOT to address the issues. The tax cuts that Bush gave higher income earners make up a huge majority of our debt. How do you think we paid for those tax cuts?
  • Ashstop
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    @Phreakwars
    Bush gave the cuts to everyone, not just the rich, he gave them to you too, if Bush is so bad lets all go back to Clinton era taxes, so your thinking if Bush had of left the higher tax rate on the top 2% only that we would be debt free now? Lol!!!!!
  • jessejaymes
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    @Ashstop I can live with going back to the Clinton era taxes. But the rich apparently think they can't. Incidentally? The Clinton era was the lowest rate of taxation on the rich since the beginning of taxes up until that time. Lower than Reagans.
  • methinks
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    @Phreakwars Do you know that increasing taxes on the rich will only pay to run the government for 8 days? We have more of a spending problem than a revenue problem.

    Did you know that in 2007, during the Bush tax cuts, we had the highest revenue coming into the treasury?

    The majority of our debt comes from entitlement programs and defense spending. Just remember that millions of baby boomers are going to be on Medicare in the next several years, putting more of a drain on us.

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  • Keyjo
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    Do you think that returning the personal income tax rates for the wealthy to their pre 2001 39.6% rate (up from 35%) will kill jobs?
    Historically, they have not! In fact, some of the most prosperous days in the United States, with the lowest unemployment rates, had even higher tax rates on the highest incomes.
    Personally, I'd prefer a 10%-15% flat tax without ANY allowed deductions.
    Your thoughts on this?
  • marine1
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    @Keyjo personally i agree with you but too many folks live for a tax refund at the end of a year and there would be a major learning curve for a lot of people. Not sure all of them could handle it,
  • Politicskid
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    @Keyjo yes, it will kill jobs. Basic economics. If you have less money to pay people, you'll pay them less. I have some fairly wealthy family members, and I can tell you, with ObamaCare and tax increases they'll be paying there employees less, and possibly cut a position or two.

    Okay, give me an example of these times when there is a high ratio of tax revenues to GDP and the economy is booming.

    I'd personally love a 10-15% federal flat tax rate with no deductions! I'd love it if our politicians were less greedy and got to that kind of reform. Are you still a socialist?

    Better yet, I think that instead of taxes automatically coming out of your paycheck, you should have to right a huge check to the IRS...it'd make people more aware of tax increases.
  • Politicskid
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    @marine1 Sure, a some people may be hurt in the short term, but come on, it'd be there own fault! Paying attention to current events to some degree is part of your responsibility as an American citizen. It's not like a flat tax would be implemented without warning. Plus, with the rates he's talking about, you'd be paying less taxes overall.

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  • RealityOne
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    The scene in my head?

    All over the world, wealthy Americans in their yachts, tennis courts, private jets, and money vaults, all shaking and quivering in unison and slowly erupting into a shaking-fist-in-the-air face wrenching and agonizing scream:

    "BOEHNERRRRRRRRRRRR!!!!!! "
  • PoliticalSpice
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    Cut the military budget at least 50%, close the the over 100 u.s. military bases in other countries, cancel pork barrel contracts for military equipment, such as the F -35, end congressional pensions, make them get the same health insurance as other americans. Good start. How much does that trim the budget?
  • PoliticalSpice
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    @CanisCanemEdit Then put them to work doing something useful to society. There are plenty of things this country needs to fo. Interest rates are very, very low. Lets put these people in jobs rebuilding infastructure, laying track and building engines and carriages for hi speed rail, installing solar panels on govt buildings in sunny aread to cut the taxpayers energy bills. Not make work jobs, but useful kobs that will improve our infastructure and leave something for future generations. Not welfare or unemployment, but jobs to give people the dignity of work.
  • CanisCanemEdit
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    @PoliticalSpice - One does not equal the other. If you have say 40,000 engineers working on the latest tank/aircraft/ship how do you cross their work experience into civilian life?

    Grunts that have one mission, to put hot metal down range and kill whatever advances...are you really going to put them to installing solar panels?

    I think you have a decent idea, but the concept of cross training possibly a million displaced military men and the tens of millions that supply the goods and support services due to the shut-downs you suggest is simply overwhelming.

    No matter what you hear from the twisted media, the real unemployment/underemployment numbers are around 15% of the current eligible population.

    Adding that many people to the already under-employed population would be devastating.

    Simply transitioning the roughly 250,000 that leave the military each year is a nearly impossible task.

    http://www.kearneyhub.com/news/local/transiti...
  • PoliticalSpice
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    @CanisCanemEdit well then you re-train people. If you want to continue spending on pork barrel military weapons system, and keeping military bases in other countries then you have no right to complain about raising taxes or wasteful spending. If your teally worried about unemployment and there is a pot of money being wasted on military then you would support reallocating the money to job training and civilian jobs. If you prefer the military spending to the civilian spending that id a policy debate, unfortunatelly Obama is on the military side of that debate and so are modt repubs. With bohner caving my only, fading hope is the tea party has the votes to push us over the fiscal cliff...

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  • scotta
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    The problem with this is there will be no cuts. I hope when the new congress comes in they have a new majority leader who has a set not a RINO takes over.
  • PoliticalSpice
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    Which entitlements? We wouldn't need unemployment if the govt provided jobs. Social security is not driving the debt so there is no need to cut it. And everyone deserves medical care regardless of if they can pay. The only @jessejames raised some entitlements that need cutting. What about closing the over 100 military bases the u.s. has overseas? What about contracts for military fiascos like the F-35. It doesn't even perform as promised and we are paying lockheed anyway. You want to cut spending lets start there.
  • PoliticalSpice
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    This sucks. We will never get major cuts to military spending, they will continue pouring money into wasteful spending like the F-35 fighter plane, which still does not perform properly, the u.s. will continue bleeding money to keep over 100 military bases in foreign countries, and Obama will cut new deal programs. Social security, which had nothing to do with the deficit will be tampered with. I hope the deal falls apart.
  • Sonny
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    Well, you guys are the one's "salivating" over the idea of throwing a lot of poor people off of various programs...Why don't you and the republican party tell us what cuts you would like to make.
  • texas_cutie75
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    @Sonny

    Hey Sonny, I didn't see you over here! I am not for throwing poor people out of any program, but I live in the land of assistance abuse, by citizens and Mexican nationals. I, in my humble opinion think there should be stricter entrance procedures. Please don't paint all Republicans with the same brush!:-) I can be pretty sharp on occassion!
  • Sonny
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    @texas_cutie75 There are already strict procedures on all "entitlement programs". And as far as "Mexican Nationals"---That get thrown around all the time by the right...But I have yet to see any real statistics as to how many (IF ANY) of these people are receiving some form of gov assistance...Just talk from the right...The real problem with "mexican nationals" is that companies keep illegally hiring them...Now, If you want them to stop coming here, then you should want to see businesses who hire them illegally, punished..But its funny that no one on the right ever wants to do that....They just want to keep perpetuating the myth that "all of those "Mexican Illegals" are collecting social security and food stamps, and medicare...Baloney!....

    What we really have here is a bunch of people on the right who don't know any of the real facts or stats. and want to selfishly throw people out on the streets...
  • texas_cutie75
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    @Sonny

    I live on the Texas Mexico border. I have witnessed it with my own eyes. There are generations of families that are on assistance and have no desire to do better. I work in the healthcare field, there are so many Nationals that come to the US for medical care (on the house). So, yes, I'd like a little overhaul to the entrance to the programs. They are in place to help people temporarily, not turn it into the family business.
  • Sonny
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    @texas_cutie75 Well, I live in Maryland...And I don't see any of that...So maybe the answer is more regional than national...Perhaps Texas needs to get its act together, and not project what ever problems you guys are having there to all other states in the union...Fix it there...leave things alone here (Maryland)..

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  • DARSB
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    Cut entitlements? Sure. Start with Exxon. Don't let BP deduct its Katrina reparations from its corporate income tax. Stop overpaying Haliburton for snack bars and laundry services.

    Only after that look at entitlements citizens have paid into through taxes.
  • marine1
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    Why penalize the people that paid into their entitlements because the stewards stole their monies. Before any entitlements are touched, all goverment salaries & retirements should be reduced and brought in line with the rest of the working people that support this country.
  • jessejaymes
    !
    I have a quick one for you that I'm sure you already know. During the Iraq war Halliburton sold six packs of Shasta Cola's to the U.S. Military for 6.00 a six pack. Bought them for resale in the USA and then the Military transported them to Iraq and distributed them for Halliburton on tax dollars. Care to guess how much that same six pack of Shasta Cola sells for at the 99 cents store?
  • Roco
    !
    @marine1 What are you talking about all government salaries and retirements. My wife and I work for the government and make around a third of what we can make in the private sector. Our retirement is good because we are putting 16 percent of each of our salaries into our retirement. Friends of ours that work at the large private hospitals constantly say we are crazy for taking that less pay. with the government. We could do that but we both love our jobs and helping veterans and Native-Americans. How about those in the private sector take a pay cut and come down to what some government workers make.? Maybe that will make some things cost a little less.
  • WattheTyler
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    If you want to talk about cuts why not cut our bloated military spending that both political parties seem so unwilling to cut at all. But nay let's just cut more aid for poor.

    Well at least we don't need to deal with this fiscal cliff bs anymore.

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  • Thegrif
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    We all knew taxes would go up, at least it's not on the small business man who's company earns 250,000.
    The problem was, and is, exactly what spending cuts will Obama make, cause a little tax increase to those earning 1 million plus will not even begin to help this economy, and with out some big spending cuts Obama's plan don't stand a prayer, but that is typical Obama- all show and no go.
    Boehner better hope he read this right.
  • Denizen_Kate
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    Taxing incomes exceeding $1 million was never the deal. Perhaps Obama can counter by agreeing to raise taxes on incomes exceeding $500k as a compromise. But before we start cutting medicare, medicaid, and Social Security, we should be cutting congressional lifetime salaries and top-of-the-line health care coverage that they enjoy and we pay for.
  • Thegrif
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    I think the tax increase for those earning a million plus is a good deal for America, but I definitly agree with your call on cutting congressional lifetime salaries and top of the line health care. I think SSI should be the mandatory plan for those elected to serve, bet they figure out in a hurry how to make SS thrive if that were the case.
  • ctc
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    I'm appalled by the lack of leadership in this country on both sides.
    Does no one realize that the consequences and fallout of not reaching a compromise on running our country sends an SOS to the world that our system is floundering.
    A second reduction in our credit rating in less than a year, the uncertainty in world markets, and the resulting slowdown of the global economy will be more costly to everyone than the few trillion these fools are bickering over.
    There's a perception out there that big companies flush with cash and the rich can profit greatly if we head back into a recession....that's a big damn gamble to take even for them.
    Do the deal.....do it now!!
  • tomincali
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    i think those folks need to be drug tested they all look high or drunk and if so should not make deals on other peoples money until the are of sound mind.
  • DrNickels
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    I wonder now much we'd save by simply not allowing those who receive food stamps, Medicaid, HUD, or welfare to receive a tax refund check each year? I'm guessing it would be billions.
  • Fishbone345
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    Probably about as much as we'd save by taking away different tax write offs and have everyone pay a flat rate. A true flat rate, not a flat rate and you get to write off your second house, etc...
  • paperdragons81
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    I'll 2nd that, have you read 1913 by oliver demill that's one of the three things that occured in 1913,and every since then government spending has increased with every president.
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