–President Seeks $1.6T in Revenues, Offers $400B In Entitlement Savings
–Obama Seeks Renewal of Payroll Tax Cut, UI Extension
–Senate Minority Leader McConnell Calls Offer A ‘Step Backward’

By John Shaw

WASHINGTON (MNI) – Congressional staffers say that President
Obama’s initial proposal this week to avert the fiscal cliff is a slight
repackaging of the budget he proposed in February, an offer that
Republicans dismiss as counterproductive.

Obama’s offer calls for $1.6 trillion in additional revenues, about
double the sum that he and House Speaker John Boehner discussed last
year during the so-called Grand Bargain talks.

The president is also proposing about $400 billion in entitlement
savings, but is requesting $50 billion for infrastructure spending.

He also is calling for the extension of the two percentage point
payroll tax reduction that was first approved in 2010, a renewal of
unemployment insurance benefits, and a housing refinance provision to
help homeowners who are underwater in their mortgages.

The president also seeks what is in effect a permanent extension of
the debt ceiling, avoiding the repeated battles by Congress and the
White House over the debt ceiling.

It was this overall proposal from Obama that prompted sharply
negative reactions Thursday from House Speaker John Boehner and Senate
Minority Leader Mitch McConnell.

“I’ve got tell you, I’m disappointed in where we are and
disappointed in what’s happened over the last several weeks,” Boehner
said.

“The American economy is on the line and this a moment for adult
leadership. Campaign style rallies and one-sided leaks in the press are
not the way to get things done here in Washington,” Boehner said.

McConnell said the White House offer was deeply disappointing.

“Today they took a step backward, moving away from consensus and
significantly closer to the cliff,” he said.

Democrats charge that the GOP has not offered a specific deficit
reduction plan but has instead fallen back on a vague pledge to consider
additional revenues through tax reform and the closing of unspecified
tax loopholes.

** MNI Washington Bureau: (202) 371-2121 **

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