Obama: Deal to Avoid Fiscal Cliff Tax Hikes 'Within Sight, But Not Done'

With no agreement on spending cuts, fiscal cliff to be solved 'in stages.'

With a New Year's Eve deadline only hours away, President Obama said a scaled down deal to avoid fiscal cliff tax hikes for the majority of Americans is "within sight, but it's not done."

In an address from the White House, Obama said the fiscal cliff -- $500 billion in automatic tax hikes and spending cuts that kick in at midnight -- would have to be solved "in stages." He said nailing down the tax cuts before the deadline is his priority, and Democrats and Republicans were still not in agreement on spending cuts, so those issues will have to be solved later.

Obama said the deal on the horizon makes sure taxes don't go up on middle class families, extends tuition tax credits, provides tax credits for clean energy companies, and keeps unemployment benefits flowing for two million Americans. He did not offer details, but the Washington Post reports that Vice President Joe Biden and Senate Minority Leader Mitch McConnell, R-Ky., have worked out a plan that includes letting taxes rise on income over $450,000 a year for couples and $400,000 a year for individuals.

Obama emphasized that the deal was not finalized yet and the country was in for a nail-biting New Year's Eve. With Congress, "if there's even one second left before you have to do something, they will use that second," Obama said.

Via Politix and The Washington Post

Is it a good idea to strike a fiscal cliff tax deal now and resolve spending cuts later?

[DARSB]

The last run at significant tax reform took two years to accomplish. Re-designing a major chunk of government spending on the fly is foolish. But so was creating a fiscal cliff in the first place.

[Antiecm]

I think when Bush gave Americans a tax break, and was forced to liltit its length, we all assumed even Obama would not be dumb enough to ignore it. But he did, in favor of lying to win an election, he allowed the deadline to approach. Republicans do not need to carry his ass. Let him take us over. The sooner history can begin writing his legacy of failure as a President the better. Here is the really bad thing Darsb. If he had followed the rules and started his campaign by identifying himself instead of all the bullcrap lies, I, as a fellow black American, would have been behind him. But if he has proven he cannot be trusted, what can he really expect. We are not all stupid. That is just the way it is.

[PNWest]

The GOP is still standing in the way. They are willing to push the country over the fiscal cliff if they don't get their way on tax cuts for the rich. Another example of the GOP putting party ahead of country. They could vote today on senate bill (Middle Class Tax Cut Act of 2012) SB 3412. http://www.govtrack.us/congress/bills/112/s34... The bill has been sitting in congress since July but Boehner won't allow it to come up for an up or down vote. It's passed the Senate and Obama will sign it. There are enough democrats and republicans willing to pass this bill. Boenher is the only obstacle.

[armenia4ever]

Here's an idea: Flat tax rate across the board.

I'm sure many on the liberal side of the spectrum are sick and tired of banks, corporations, ect. with tons of money hiring 100s of lawyers and attorneys to find every single tax loophole in the system so that they can pay almost nothing in tax. All the small businesses out there and the rest of us can't afford to do that though. Shocker.

But if that can't happen, lets raise the top tax rate to 75%! Oh, and perhaps an entertainment tax for the likes of Damon, Clooney, ect amounting to 70% of their income. In fact, lets tax athletes, sports teams, and every single thing we can. The economy should recover in no time!

[Thunderchicken]

Been saying this all along. Keep everything as it is now. Then address spending with real cuts. (No baseline smoke and mirror BS.) Then address taxes.

[mimi57]

I agree, the closer it gets the more ominous it appears for everyone. If it happens
no one will 'win', it's a lose , lose situation for everyone. Not so bad for us, we are
pretty good, but I think of my kids and younger people too...

[Thunderchicken]

@mimi57

If you're meaning the cliff and the probable recession, there will be opportunities. Fortunes have been made during recessions. It's just that there's a lot of hurt that occurs too. I'd rather see calm rational and gradual action. But I don't hold out hope for more than a postponement of the hurt. And the more we put it off, the worse it'll be.

[mimi57]

@Thunderchicken But I blame a lot on the current administration, I mean look how long they've had and they have done nothing, now here we are at the precipice... we're still going to get hurt.

[Fishbone345]

"Then address taxes"
If by address you mean "get rid of" then we agree. The answer is so simple, but these career politicians that people keep voting for are making it beyond difficult. Ridiculous.

[Thunderchicken]

@Fishbone345

We'll always have taxes of some type. I mean simplify the tax code. Eliminate deductions, credits and exemptions. You make X, you pay Y percentage.

[Thegrif]

If we have learned anything it don't matter. It's going to be Obama's way or the high. He would rather be right than do what is best for America.

[Antiecm]

Well you cannot blame me, I voted for the American. I also emailed every Republican member today, along with thousands of other Americans, and told them to stand firm. Let the fool drive us over the cliff. If it goes against Republican beliefs, then just say no.

[Penn1699]

Although I agree with my above freinds, I think a stop-gap deal is necessary.
Any agreement although tentative is better than none.
I look at it from the perspective that we can not at this time risk losing military capability with the insolvency of Syria, Iran, N Korea and other volatile regions in the world.
Like it or not we keep the world safer a safer place.
Yes I am aware of atrocities that occur on ours as well as others. However the greater good is served...

[Dan_Tien]

Government always approaches budget problems in stages to be accomplished in the future, which are undone in the future by new solutions which will also take effect farther in the future.

[Jim49418]

It should never have even come to this.
They've known about this for 17 months.

[martydotcom]

With this feckless group of self aggrandizing clowns I have no hope of their doing anything that would benefit "we the people." All these non entity reps from South Podunk, are so enamored of the opportunity to act like peacocks preening in front of the TV Cameras for the folks back home no end is in sight.
I heard yesterday that the FDA has banned Orange Color #1 food dye much to Boehner's dismay.. Cause of the ban testicular and frontal lobe shrinkage.

[Jeff_Woehrle]

Worth noting some numbers: Obumble's typical yearly deficit is $1 trillion ($1000 billion). The fiscal cliff (more aptly called the fiscal reality check) would cut spending by $500 billion and raise taxes by $500 billion. Result = deficit gone...at least in the near term. As incomes collapse, so will tax revenue, but that's a story for another day.

Also worth noting that the initial tax increase on millionaires (which now means over $250,000 per year) would net the government about $90 billion. Relief proposed for Sandy victims? About $40 billion. So, nearly half of the increased taxes on the 'rich' will be gone in one instant, leaving the deficit virtually untouched.

Party on, liberals! Borrow, borrow, spend, spend! Let the rich folks and the unborn figure out how to pay for it all.

[Knightkore]

President Hussein Obama "Blah, blah, blaah, blahhh, blah..."

[ScottCX]

Talk about brilliant use of political bullying... For FOUR years, Obama had a House and Senate controlled by Democrats.... No budget proposed at all. Now, its Republicans fault and we have to agree on taxes... We'll worry about spending later... Is that like being told of Obamacare, "We'll have to pass it to see whats in it?"

[ConserveUSA]

Obama was political bullying. Stating he is President four more years which he does not realize that we have "Checks & Balances" System not him in power. Obama got to realize, come up with good plans or face the nation.

[ConserveUSA]

No House Vote from what I heard today. President Obama need to come up with a better plan or just face it.

[cwi530]

Once upon a time the GOP agreed to raising taxes because the Dems said they'd go along with spending cuts later and it never happened. The Dems lied. Why should the GOP believe them now?

The crisis cannot be solved by raising taxes and EVERYBODY knows it. It's not a revenue problem it's the spending stupid and the Dems don't want to make the cuts needed to address the problem.

[ConserveUSA]

To avoid The Fiscal Cliff: Stop Spending on Worthless Programs! Stop giving money to hostile countries!

[Keyjo]

Looks like Congress is going home without a vote.

[RobertJHarsh]

CLIFF! CLIFF! CLIFF! CLIFF! CLIFF! CLIFF! CLIFF! CLIFF!

[MolonLabe]

Here we GOOOOOO0000000oooooooo........ ..Let's do this. I'm ready.

[carl4401]

So sad that these children can't play nice with each other. The words are, mid term, and changes. Dangit. If it quakes tonight, you can bet our founding fathers are rolling over in they're graves. I'm not ashamed of America , But of our government and the elected officials we the people placed there to handle our business. Clearly they need replaced.

[FollowTheMoney]

Stages = election cycles.

[artjeb]

[__]o here is my cup. Will some of you help fill it with some change you have? I have seen obama's change & thats why I'm holding the cup

[artjeb]

I am now hopping lol