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Neon Tommy - Annenberg digital news

Fiscal Cliff Talks Begin For Boehner, Obama

Paige Brettingen |
November 9, 2012 | 9:52 a.m. PST

Executive Producer

House Speaker John Boehner is hopeful 2013 is the year the country's debt is solved (Screenshot ABC News)
House Speaker John Boehner is hopeful 2013 is the year the country's debt is solved (Screenshot ABC News)

President Obama is scheduled to address the pending economic challenges the country faces as a tax plan needs to be agreed upon by the end of the year. This "fiscal cliff," which could potentially cause another recession, involves the expiration of personal tax cuts put into place during the George W. Bush administration and extended by President Obama and Congress two years ago.

Prior to the President's appearance on Friday, House Speaker John Boehner gave his thoughts on how he hopes the president and Congress will handle it this time around:

"Raising tax rates would destroy over 700,000 jobs in our country," Boehner said, in a live CNN broadcast. However, Boehner was hopeful that an agreement between Republicans and Democrats could be made.

"2013 should be the year we begin to solve our debt… I hope the President will respond today with that same spirit… this is an opportunity for the President to lead," he said.

SEE ALSO: What President Obama Needs To Do In His Second Term

If a resolution is not found, the impact would involve an average increase of $3,500 per family next year and unemployment rising to about 9 percent, according to live CNN coverage. It is projected there would be a total of $600 billion in spending cuts and tax increases if the deficit can't be cut.

While Boehner has expressed a willingness to negotiate, he also has repeated that the solution should not involve raising taxes, the Boston Globe reported.

Instead, Boehner said the solution should involve entitlement reform and tax reform with lower rates.

In an interview with ABC News, Boehner stressed that it was imperative taxes not be raised on small businesses, even though President Obama has said during his campaign that tax rates would increase from 35 to 39 percent for those making over $250,000 annually.

SEE ALSO: World Hopeful For Change With Obama's Re-Election

Members of Congress also hope that Republicans and Democrats will be able to put aside their partisan views and focus on finding a solution as fast as possible:

  • Retiring GOP Rep. Steve LaTourette of Ohio told CNN that a poll commissioned by centrist Republicans showed that voters wanted Congress to fix the nation's fiscal problems rather than cling to political orthodoxy.
  • "They didn't send the same bunch back to town in this election because they love what they're doing," LaTourette said. "They sent him back because they don't trust either side, but they do expect them to get this thing done."

Find more Neon Tommy coverage on the fiscal cliff here.

Reach Executive Producer Paige Brettingen here. Follow her here.



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