House Republicans have put together a bill that would prevent America from going over the dreaded Fiscal Cliff come January 1, 2013. In a surprising move, Republicans are banding together over a series of votes that would accomplish two key economic goals. Temporarily replacing automatic sequestration cuts (to include defense spending) but allow a slight raise in taxes on Americans making more than a million dollars, instead of penalizing middle income Americans.
In a stark change of pace, House Speaker John Boehner has “recharged” his positioning with what is now being called “Plan B”, and placed the burden squarely on the shoulders of the President and Democrats.
“Tomorrow, the House will pass legislation to make permanent tax relief for nearly every American,” Boehner said. “Then the president will have a decision to make. He can call on the Senate Democrats to pass that bill or he can be responsible for the largest tax increase in American history.”
It’s a bold move that is gaining support by conservatives and moderates, though conservatives still remain “cautious.”
Some conservative leaders are still not convinced, claiming Plan B is a “wholesale sellout” and still a tax hike on the biggest job creators in a weak economy.
Andy Roth, VP of the Club for Growth, claims Plan B will be an economic disaster to the economy, stating “It’s no secret that this bill is not a final product, but a bargaining tactic to make a larger deal even worse.”
But Grover Norquist, president of Americans for Tax Reform has a different take.
“Republicans supporting this bill are this week affirming to their constituents in writing that this bill — the sole purpose of which is to prevent tax increases — is consistent with the pledge they made to them,” Norquist’s organization said in a statement. “In ATR’s analysis, it is extremely difficult — if not impossible — to fault these Republicans’ assertion.”
While Republicans move closer to finding common ground on Plan B, democrats are united in its opposition.
Democrat lawmakers called Boehner’s Plan B “Outrages…empty” and a “hoax.” In a meeting to discuss the terms of a floor debate over the proposal, Democrat boycotted the meeting.
On Wednesday, the White House issued a veto threat that would kill the bill, causing a raise in taxes not only on millionaires, but the middle class as well.