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'Fiscal Cliff' Talks Stall Over Raising Taxes

Elizabeth Johnson |
November 26, 2012 | 3:33 p.m. PST

Executive Producer

Several republicans have distanced themselves from Grover Norquist and his anti-tax pledge. (Creative Commons)
Several republicans have distanced themselves from Grover Norquist and his anti-tax pledge. (Creative Commons)
Negotiations regarding the fiscal cliff have stalled once again between President Obama and congressional Republicans over the much-contested question of raising taxes for wealthier Americans. However, aides to the president say it’s too soon to declare the talks to be at an impasse.

READ MORE: The Origin Of The Term Fiscal Cliff And What It Means

Though both sides appeared optimistic before the holiday that an agreement could be reached before the looming January deadline, the president publicly re-emphasized his position Monday that taxes need to be raised for families earning a certain annual salary. 

“The president has made clear that he will not sign a bill that extends the Bush-era tax cuts for those making more than $250,000,” said White House press secretary Jay Carney. "That is a firm position. Math tells us that you can’t get the kind of balanced approach that you need without having rates be part of the equation. We haven’t seen a realistic proposal that achieves that."

READ MORE: White House Warns About "Fiscal Cliff"

Top Republicans have also reiterated their stance that raising tax rates can be avoided with revenue from closing tax loopholes and placing limitations on deductions.

President Obama had no meetings with lawmakers scheduled for Monday or the rest of the week.

Though White House officials remain optimistic, the administration has begun appealing to the public as a back-up strategy to pressure Republican congress members.  

The L.A. Times

Early in the day, the White House Council of Economic Advisors released a report projecting that, if Congress fails to act and middle-income taxes rise, consumer spending growth could decline by 1.7 percentage points.

Economic growth overall would drop by 1.4 percentage points next year, council Chair Alan Krueger told reporters in the afternoon. The automatic tax increases wouldn’t just hurt the rest of the holiday shopping season, he said, but could trim consumer spending by about $200 billion in 2013.

The campaign comes on the heels of several top Republican lawmakers publicly rejecting lobbyist Grover Norquist’s anti-tax pledge. Norquist addressed the wavering lawmakers on CNN Monday, stating, "You're not having that argument with me," he said. "You made a commitment to your voters."

READ MORE: Some Republicans Waiver On No New Tax Pledge

The lawmakers have argued that they didn’t intend to pledge for more than two years, and that the fiscal crisis requires taking a more balanced tack concerning deficit reduction.

Read more Neon Tommy coverage of the fiscal cliff here.

Reach Executive Producer Elizabeth Johnson here. Follow her on Twitter here.



 

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