Fiscal Cliff Notes for Nov. 30, 2012
31 days to the fiscal cliff
OBAMA ON THE FISCAL CLIFF ROAD
Driving the fiscal cliff narrative on Friday.....
President Barack Obama is taking it to the people--visiting a toy factory in Hatfield, Pa. on Friday---in an obvious tie to the Christmas buying season--to put pressure on Republicans to extend tax breaks for the 98 percent of U.S. families with incomes below $250,000 due to expire on Dec. 31.
From the White House: "While in Hatfield, the President will continue making the case for action by visiting a business that depends on middle class consumers during the holiday season, and could be impacted if taxes go up on 98 percent of Americans at the end of the year. The President will tour and deliver remarks at The Rodon Group manufacturing facility, the sole American manufacturer for K'NEX Brands, a construction toy company whose products include Tinkertoy, K'NEX Building Sets and Angry Bird Building Sets. The Rodon Group and K'NEX Brands, both third-generation family businesses, employ over 150 people at their Hatfield facilities."
And more from the Obama team: " The Rodon Group and K'NEX Brands, both third-generation family businesses, employ over 150 people at their Hatfield facilities. The Rodon Group, committed to insourcing, brought back 95% of their packaging and production from China to Pennsylvania over the past few years. This move led to a 25% increase of their local workforce along with additional hires by local suppliers and businesses.
"As we move into the holiday season, Democrats and Republicans should come together to renew middle class tax cuts so families have more certainty at this critical time for our economy. If we act quickly, we can prevent a hit to consumer spending which is roughly 70% of the U.S. economy. That's good for middle class families and it's important for businesses like The Rodon Group.
"By extending middle class tax cuts, every American will get a tax break on their first $250,000 of income. And income taxes won't go up at all for 98% of American families and 97% of small businesses. If not, middle class families will see their income taxes go up by $2,200 in just a few short weeks. Everyone agrees that taxes shouldn't go up on middle class families. The Senate sent a bill to the House to extend middle class tax cuts. There's no reason to wait."
REPUBLICAN NATIONAL COMMITTEE GIVE THUMBS DOWN TO OBAMA ROAD SHOW
From the RNC on Friday morning: "The Election Is Over, But Obama Is On The Campaign Trail In Pennsylvania Nearly A Month Before The Thelma And Louise Democrats Plunge Us Over The Cliff"
GEITHNER FAILS (SO FAR) TO WOO GOP CONGRESSIONAL LEADERS
Treasury Secretary Tim Geithner hit Capitol Hill on Thursday to meet with the top GOP and Democratic leaders. His sales job fell short, Politico reports HERE.
WHAT GEITHNER OFFERED, ACCORDING TO A GOP SOURCE
· Immediate increase in both top marginal rates as well as capital gains and dividends (the Senate bill did not achieve this); $960 Billion
· Additional tax increases to equal $600 Billion
· 2009-level estate tax (the Senate bill did not achieve this)
· AMT and business tax extenders
· Payroll tax extension or new alternative policy
· Bonus Depreciation extension
· Unspecified savings from certain non-entitlement mandatory programs
· 1-year deferral of the sequester
· Extension of unemployment insurance
· Patch for SGR
· Multi-year stimulus package starting with at least $50 billion in FY 2013 alone
· White House proposal for refinancing underwater mortgages
· Permanent increase in the debt limit, sufficient to avoid affirmative action to raise it again
· Tax reform consistent with the $1.6 trillion tax increase
· Medicare/entitlement policies from the President's budget that could total $400 billion in savings