White House Issues Veto Threat on Boehner's Plan B
The White House issued a veto threat of the Plan B fiscal-cliff legislation the House plans to pass tomorrow.
The Office of Management and Budget just issued the statement of administration policy noting that President Obama "strongly opposes" Speaker John Boehner's (R-Ohio) Middle Class Tax Cut Act.
"Tomorrow, the House will pass legislation to make permanent tax relief for nearly every American, 99.8 percent of the American people. Then the president will have a decision to make," Boehner said in a brief press conference this afternoon before walking out without taking questions. "He can call on the Senate Democrats to pass that bill or he can be responsible for the largest tax increase in American history."
The OMB claimed Plan B, a compromise to extend the Bush-era tax cuts for incomes up to $1 million, "would continue large tax cuts for the very wealthiest individuals while raising taxes on 25 million students and working families by an average of $1,000 each."
"In addition, the House amendment would immediately cut off unemployment assistance to two million Americans struggling to find a job, end critical tax incentives for the Nation's businesses such as the Research and Experimentation tax credit, and cut reimbursements for doctors treating Medicare patients," the statement said. "The deficit reduction is minimal and accomplished solely through tax increases, with no spending cuts. This approach does not meet the test of balance."
"In contrast to the minimal and unbalanced deficit reduction envisioned by the Middle Class Tax Cut Act, the President has offered a balanced, reasonable proposal that achieves significant deficit reduction and reflects real compromise on revenue increases and spending cuts. The parameters of a deal are clear, and the Administration is willing to continue to work with Republicans to reach a bipartisan solution that averts the fiscal cliff, protects the middle class, helps the economy, and puts the Nation on a fiscally sustainable path."
"The Administration will not accept a deal that asks too little of the very wealthiest to increase revenue and instead shifts the burden to the middle class and seniors."