Republicans scoffed at and immediately rejected Obama's first shot at a fiscal cliff fix. Mitch McConnell "burst into laughter," and John Boehner said "the White House needs to get serious."According to the leaked tidbits, Obama's plan would do the following:
1. Cut $4 trillion from the deficit:
- Extract $400 billion in savings from Medicare and gain $1.6 trillion in revenue by ending Bush tax breaks on earners over $200,000 and reforming tax on capital gains and dividends.
2. Add stimulus spending:
- Spend $50 billion on new infrastructure, extend the payroll tax holiday another year, extend unemployment benefits, and create a new mortgage-refinancing program.
The plan would also grant the president the power to raise the debt ceiling.
"Basically the president is asking for exactly what he campaigned on," says the National Memo. Republicans, however, are witheringly calling the proposal a "second stimulus" that we can't afford.