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Anonymous aides to Republicans "who know," say Tim Geithner's opening proposal from the White House to solve the "fiscal cliff" looks "almost exactly like" the budget proposal  President Obama made last February, reports Andrew Taylor, in Fiscal Cliff 2012: Republicans Say White House Proposes $1.6 Trillion In New Tax Revenue, New Stimulus, Elimination Of Debt Ceiling.

GOP aides say Treasury Secretary Tim Geithner presented an offer calling for $1.6 trillion in new tax revenue over the coming decade, extending the 2 percentage point payroll tax deduction or something comparable to it and $50 billion in stimulus spending on infrastructure projects.

The White House plan calls for $960 billion over the coming decade by increasing tax rates and taxes on investment income on upper-bracket earners and $600 billion in additional taxes. Republicans view the offer as a step backward with the fiscal cliff – an economy-rattling set of automatic spending cuts and tax increases – looming at years' end.

The only new spending cuts in the plan would come from administration proposals curbing health care programs by $400 billion over the coming decade and modest cuts from non-health programs like farm subsidies and cutting Postal Service costs and through higher fees on airline tickets. The plan would also boost spending by extending unemployment benefits for the long-term jobless, deferring looming cuts to Medicare payments to physicians and helping homeowners refinance "underwater" mortgages.

Geithner is also requesting a permanent extension of the government's borrowing ability to avoid a crisis in the next months over the debt limit.

One outcome of such a "grand bargain" would be to avoid the $109 billion in cuts that would be this year's portion of the automatic sequestration cuts scheduled to take effect in January.

It is a relief to finally see an outline of a complete proposal dealing with taxes, sequestration, the doctors fix, payroll tax withholding, and the debt limit all in one package.

I would prefer to see cuts to military spending than any reductions in health care or Medicare. I know we say we are only cutting reimbursements to providers and not to beneficiaries, but there is only so far we can cut these without influencing services received.

My understanding is that some of the Mayo Clinics in the mid-west (maybe Arizona?) are no longer accepting Medicare patients, and it can take a long time to schedule appointments. When I was diagnosed last year with diabetes type 2 in April, it took my leading community health clinic, in Boston, until December to find me the first available appointment with a nutritionist to tell me how I should change my diet.

But, overall, I"m encouraged to see us Democrats opening with a solid aggressive proposal. I will strongly stand behind Geithner and President Obama in resisting concessions to these obstructionist Republicans. We can win this battle with the bully pulpit and media and I'm ready to fight this battle.  

Originally posted to HoundDog on Thu Nov 29, 2012 at 04:13 PM PST.

Also republished by The Democratic Wing of the Democratic Party.

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Comment Preferences

  •  Heh (9+ / 0-)

    So the administration is leading with tax cuts and a few trims to the subsidies in Medicare (no doubt), and inviting the party of small government to counter with the spending cuts they always claim to want.

    Republicans can't refuse to name spending cuts by claiming they'll work it out after the election.  It's after the election, and this is the time to work them out.  So put up or shut up, Pubbies.

    Only thing missing are some significant cuts to Defense and Homeland Security bloat.  Other than that, I'm very happy with what they're characterizing here.  And to think, Republicans are leaking stuff that makes the administration look good.  They must be rusty by now.

    Citizens United defeated by citizens, united.

    by Dallasdoc on Thu Nov 29, 2012 at 04:21:12 PM PST

    •  Agreed. I think President Obama ought to publish (7+ / 0-)

      this and start a campaign style campaign for it.

      Including specific vote for these items from the Senate saying he's willing to sign it today, and if the GOP stall these specific groups suffer great harm.  

      Let the GOP know we are serious and not going to back down as if they won the election.

      Make them pay a price just even for considering it and holding it up.

      The means is the ends in the process of becoming. - Mahatma Gandhi

      by HoundDog on Thu Nov 29, 2012 at 04:48:47 PM PST

      [ Parent ]

      •  Only flaw with the plan (1+ / 0-)
        Recommended by:
        vigilant meerkat

        ... is the general lack of spending cuts.  I think the White House should have included substantial but specific Pentagon spending cuts, and reductions in Homeland Security boondoggles.  When Republicans howl about leaving us open to al Qaeda, ask how many advanced jet fighters or nuclear attack submarines al Qaeda has, and whether the equipment we already possess might be adequate to the task.

        Maybe they'll bring these out as a counter to the catfood-for-Grandma cuts the Republicans would name, in the unlikely event they come up with anything specific.  I still expect unemployment benefits to be a powerful hostage Republicans will hold at gunpoint.

        Citizens United defeated by citizens, united.

        by Dallasdoc on Thu Nov 29, 2012 at 05:07:24 PM PST

        [ Parent ]

        •  This is good? So, we're going from Bernie (2+ / 0-)
          Recommended by:
          HoundDog, vigilant meerkat

          Sanders to Dick Durbin?

          As I’m sure you are aware, there is currently a major effort being waged by Wall Street CEOs, Republicans and some Democrats to do deficit reduction on the backs of the middle class and working families.

          This could mean, among other things, significant cuts to vital programs such as Social Security, Medicare and Medicaid.

          President Obama and the Democrats won a decisive victory on Election Day.  The people have spoken and the Democratic Leadership must make it very clear that they intend to stand with the middle class and working families of our country, and not the Big Money interests.  This means that in the coming weeks and months the Democrats must hold the line in demanding that deficit reduction is done in a way that is fair -- and not on the backs of the elderly, the sick, children and the poor. (emphasis mine)

          Bernie Sanders

          At the same time, Sen. Richard J. Durbin of Illinois, the No. 2 Democrat, tapped his ties to the liberal wing of the party to urge a broader deficit deal in 2013 that would include trims to Medicare and other entitlement cuts.

          "We can't be so naive to believe that just taxing the rich will solve our problems," said Durbin, speaking at the influential liberal group called Center for American Progress. "Put everything on the table. Repeat. Everything on the table."

          Dick Durbin

          So, we start out caving again before we've even started?   Can the Democrats never learn from any mistake they've made?  Most people in the U.S. want to tax the rich, but they want the social safety net programs left alone.

          •  Cuts to wasteful providers of durable goods, or to (3+ / 0-)
            Recommended by:
            MKSinSA, Larsstephens, sewaneepat

            pointless Advantage programs would make Medicare stronger and less vulnerable.  Obama is already cutting defense spending, directing that money to infrastructure.  In what way are these things "caving"?  the fact that the POTUS doesn't tell the Republicans in Congress to fuck themselves is NOT weakness, it's strength.

            I'm not looking for a love that will lift me up and carry me away. A love that will stroll alongside and make a few amusing comments will suffice.

            by I love OCD on Thu Nov 29, 2012 at 06:37:43 PM PST

            [ Parent ]

            •  I think Adam Green and Digby nailed it: (0+ / 0-)
              “What’s worried some about the Politico article is that it kind of tossed in reforms or efficiencies along with talk about raising the Medicare retirement age or adjusting the cost of living adjustment — those two things would essentially start a nuclear war on the left,” Green said. “Those are the two big things. Those are benefit cuts. Those actively hurt seniors.”

              Adam Green

              As I wrote earlier, this is not something about which liberals either in the House or outside should trust the administration. The White House already showed its hand a year ago and we would all be fools to think they won't go there again if they can get away with it. Ellison's words are very welcome.

              Digby

              All emphasis mine
  •  The GOP released this, why again? (8+ / 0-)

    In the Republicans' fevered brains, they must think this makes Obama looks bad?  

    I would think this package would poll well assuming people understood what was in it.

    •  They've switched places (3+ / 0-)

      with where Obama was in 2010-2011.  Now it's Republicans releasing this kind of stuff saying "See, the other side is being soooo unreasonable and uncompromising" with the hope that the public will punish Democrats for being a bunch of inflexible meanies.

      But only the pundits and beltway elites give a shit about that, the American public, not so much, something that Obama learned the hard way during the whole debt ceiling brouhaha.  

      “Th’ noise ye hear is not th’ first gun iv a revolution. It’s on’y th’ people iv the United States batin’ a carpet.” - Mr. Dooley

      by puakev on Thu Nov 29, 2012 at 04:42:25 PM PST

      [ Parent ]

    •  I think it was "aides" just trying to win favor (2+ / 0-)
      Recommended by:
      bear83, DEMonrat ankle biter

      points from their friends in media.

      I think Obama ought to publish it and start campaigning on it, ( see my comment to DallasDoc.)

      The means is the ends in the process of becoming. - Mahatma Gandhi

      by HoundDog on Thu Nov 29, 2012 at 04:50:07 PM PST

      [ Parent ]

  •  Good first offer for Obama (4+ / 0-)

    Since GOP is so outraged, I'm sure they will counter with something right? :)

  •  Wow (8+ / 0-)

    No prenegotiation. That's a damn god proposal.

  •  The days of pre-compromising (8+ / 0-)

    appear to be past.  And I'm especially heartened by the Obama folks throwing in a request for $50 billion in infrastructure spending and money for mortgage refinancing.  This is essentially a big, "Fuck you, we won, suck on this" to the Republicans.  

    If they hold the line on safety net benefit cuts, I think we liberals may find very little to be really upset about, which is a really unfamiliar place for us to be in.  

    “Th’ noise ye hear is not th’ first gun iv a revolution. It’s on’y th’ people iv the United States batin’ a carpet.” - Mr. Dooley

    by puakev on Thu Nov 29, 2012 at 04:36:56 PM PST

    •  Yes, I know this was my favorite part. (6+ / 0-)

      Like okay here's what we think about government spending. We need economic stimulus and and infrastructure bank.  Which is really true.

      President Obama should publish this and give a speech on it.  And get the Senate to pass a law demanding it and tell the House if they don't get off their butts and pass it he's going on the campaign trail.

      The means is the ends in the process of becoming. - Mahatma Gandhi

      by HoundDog on Thu Nov 29, 2012 at 04:52:47 PM PST

      [ Parent ]

      •  Exactly right (3+ / 0-)

        Republicans have complained that the President is not being specific. Well, here you go, jerks. Here's the plan.

        Don't negotiate behind closed doors, Mr President. Negotiate on The View. And Letterman. And in front of the VFW. Sell your plan. It looks one hell of a lot like what you campaigned and won on. Get the Big Dog back out on the road to explain shit. Rent him a house in Boehner's district.

        And don't forget that we need 17 more seats in the House in 2014 and then Nancy Pelosi can relieve Mr Boehner of the burden of the gavel. It's time to start targeting about 40-50 House districts right now - vote for my plan, or your voters will kick you out.

        Filibuster reform now. No more Gentleman's agreements.

        by bear83 on Thu Nov 29, 2012 at 08:07:24 PM PST

        [ Parent ]

  •  The president saying (2+ / 0-)
    Recommended by:
    I love OCD, bear83

    the same thing he has said for the last year? that which was also just affirmed by voters? Imagine.

  •  you know this is coming from the GOP (0+ / 0-)

    right? "GOP aides say …"

    All things in the sky are pure to those who have no telescopes. – Charles Fort

    by subtropolis on Thu Nov 29, 2012 at 09:56:46 PM PST

  •  what about extension of unemployment? (0+ / 0-)

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